33-Year-Old Japanese Guy Explains: Japan Must Use Cheap Japanese Yen to Get Rich Again!

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MrJapan
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[MJapan]

Thank you so much for watching🥰 You guys are the best!!

[xXdnerstxleXx]

Hey, someone with a major in economics here.

The entire problem of Japans economy is the central bank. It has done the single dumbest monetary policy in the whole world for 3 decades now. Bad companies should have gone bankrupt 25 years ago, but the bank left bad companies alive through cheap money. As a result you got worthless companies, worthless jobs and a worthless currency.

The yen was inflated and the only reason why Japan didn't have an insane inflation is because they essentially took it out of the system by just investing everything abroad. Nothing was invested into the home country. Wages are flat.

Worst of all, when the central bank said they won't be able to raise interest rates anymore, it was essentially a capitulation. Short sellers come in droves, betting against the japanese market. Oh and before I forget it: The insane government regulation makes it also basically impossible to start new profitable companies. If you want a future in Japan, work for a company that makes their money abroad and you are good.

Japanese citizens need to finally vote the establishment out and get rid of Keynesian economists at the central bank. However, considering how overaged the population is that is very unlikely. Old people don't want change.

[jw]

I think this is the new normal for Japan.

[kikkek]

This might be callous of me to say, however the zombie companies that are not profitable are barely contributing to society. Although they do keep people employed they do not provide any actual value as companies, they work as a time of welfare that actively wastes manpower. Either have the companies be state owned for necessary services that are no profitable, or have them fail and be replaced with more optimized ones. At least as I see it.

[mbutungubu]

American raiders ruined your currency with the carry trade

[Rawbtala]

We’re rooting for you, Japan. がんばって！

[markvis]

if the currency exchange value dropped it could mean, most likely, 1 of 2 things

1. local bank notes that were treasured abroad have returned and added to the local treasury.

i.e someone outside of japan paid for a japanese product in jpy lowering the value of the trade as it normalizes the deficit, increasing the local availability and thus lowering the global value. (you're actually richer now, but nobody cares)

or

2. the amount of people newly employed in government subsidized positions has increased and the govt decided to just lower the value accordingly.

more people to pay salaries to with limited amount of notes.

[leegaul]

In the 1970s it was like 300 Yen to the USD. In fact the only time the JPY was less than 100 to 1 was between 2008 and 2014. It is growing weaker in respect to the US exchange, but it's nowhere near the worst is has ever been. Depending on how things go moving forward, this can be turned around, or in the least stabilized.

[Azur_Vita]

tourism does not really work for boosting an economy long-term

but i agree that Japanese people should embrace this situation

[marcogawa]

Great topic!
Plan B, C and D…
I’m getting ready bro.

[TheOtherKine]

What happened to all the home electronics and appliances Japan used to make? We don't have any of those in the US

[linuxman]

Japan has hope if the BOJ doesn't raise interest rates again. And Japanese companies try to focus more down market again. As they are more competitive with China and Korea again.

[apixel]

Japan's economy has not had a good 2024, the yen right now is at it's lowest ever against the Dollar and Euro. Hopefully that changes soon but we'll see.

[mtownz]

Good thing I only converted 500$ to yen before my tokyo trip in November.

[era]

on the contrary, I finally get to afford a trip to Japan))

[lieutenantpepper]

Mr Japan: Tachinbo girls in Shinjuku will become cheap!

[Elfunkox]

If the usa tried to naval blockade oil from china, it will also block japan. I dont think theres any upside for japan by being between usa and china. Economically japan has lost also. If anything, japan should import chinese electric cars and such and save money on prices and/or develop projects w china to try and produce the next gen stuff. This gen is decided already tho, usa decided it in 1986 w the plaza accords when they destroyed japans economy to prop up the US economy 🤷‍♂️

[F_C...]

Your leaders have to pick one. Inflation (currency devaluation) or recession. What they should do is allow the Japanese companies to fail, if they cannot handle 0.25 interest rate then they should not be in business. Let the recession pain hit and then you can begin recovery.

[joshuagenes]

A cheaper Yen will make exporting better. When it comes to paying debt you have to look at the debt to currency ratio. The central bank can improve the currency ratio by printing more currency while restricting debt( increasing the reserve requirement) and increasing interest rates over time. The newly printed currency half should pay down the debt and half should be spent by the government on economic building like infrastructure and jobs for the poor and other such things. In such manner you will boost the economy and wipe out both public and private debt amongst the working class. Granted some of this money will have to be spent on retires to offset their losses. Instead of debt investment based financing needs to be promoted.

[alexs]

So seem blackpilled, but I watch and see going along you get to the silver lining.

Japan has not de-industrialized--
import raw timber and ore, export steel and quality goods? Isn't that the idea?