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Japan returns to trade deficit in May

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And the yen keeps rising!!

4 ( +4 / -0 )

dealing a fresh blow to Prime Minister Shinzo Abe’s efforts to boost the fragile economy ahead of a July election.

Election victory is guaranteed regardless of business performance, whether overseas trade deficit or sluggish domestic sales.

4 ( +5 / -1 )

Exports to China will only continue to fall.... each month China gains more and more capabilities to produce what the Japanese do. The Yen continues to rise because, despite Japan being one of them most in debt countries in the world, that debt is about 98% internally financed. Japan needs to scare the rest of the world.... like Greece. Rumors of defaults and such might help.

-2 ( +3 / -5 )

Japan needs to scare the rest of the world.... like Greece. Rumors of defaults and such might help.

Currency traders often trade on rumors and sentiment, but they are not stupid. They will buy whatever currency they can earn a profit on. The yen will get stronger until it doesn't. And rumors of default are not going to scare anyone who knows that if things continue as they are, default is inevitable. The end of the road is approaching, but those who make money trading currency will jump out as late as possible.

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dealing a fresh blow to Prime Minister Shinzo Abe’s efforts to boost the fragile economy ahead of a July election

Here's hoping and praying that it deals a deadly blow to Prime Minister Shinzo Abe’s efforts to win the upcoming election.

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Hey, who was that poster more than a year ago who said he LOVED Abe and Co for all the 'great things he was doing', later admitting he would love anyone who lined his pockets and helped his export business, laughed at others who were not doing well because of the deflated yen, and predicted that by now it would be 200 yen to the dollar? Was it Helter Skelter? I wanted to ask him how much he still loves Abe and Co., how his business is doing, and what he thinks of the situation now that Abenomics has proven a complete failure as most sane people predicted.

3 ( +4 / -1 )

bones

And the yen keeps rising!!

And so it should because Japan still runs a current account surplus,

The third biggest in the world, after China and Germany.

The only way the Japanese are going to weaken there currency in the short term is if they have monetary union with Greece, but Germany's already bagged that one as a means of manipulating her currency.

-1 ( +0 / -1 )

The era of exporting your way to the US and China because they are clods that crave made in Japan quality - no matter how superior it actually is over. Japan needs to grow up and stimulate internal demand and create a higher standard of living so that it can transition toward becoming the world's lifestyle superpower. A tall order indeed but that along with structural reforms is the nation's best chance.

2 ( +2 / -0 )

The only way the Japanese are going to weaken there currency in the short term is if they have monetary union with Greece, but Germany's already bagged that one as a means of manipulating her currency.

Gary, you nailed it. Exactly right.

0 ( +1 / -1 )

Us Brits are kicked in the Brexits every day now. Soon £1 = $1.

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but Germany's already bagged that one as a means of manipulating her currency. LOL yeah like they dont hide behind a weak Euro all the while printing flat out with their own QE, no anybody who bets on the Yen will be allowed to appreciate it the 90s/80s for any length of time is a brave person. even when recording deficits speculators still dump their cash into yen for safety. (a problem no other currency suffers from) The currency moves are purely one sided and Japan can and will intervene when they see fit, and theres sweet stuff all anybody else can do about it except complain. If they were all concerned about intervention they would have banned it years ago, but nobody whats to ban tools that all central banks use to promote their economies. you may all bathe me in your glorious thumbs down. LOL

-3 ( +0 / -3 )

Abenomics!

It will work. I know it will. Just give it a few more years.

0 ( +1 / -1 )

wtfjapan

yeah like they dont hide behind a weak Euro all the while printing flat out with their own QE.

Are you serious, Germany has no QE outside of the ECB, which the German federal bank is cheesed off about?

One of the frictions between Germany and Japan is that Germany refuses to go along with QE and wants to maintain balanced budgets.

Of course we all know that Japanese QE is for Japan Inc alone, while Japan wouldn't mind getting a bit of German QE - just like it did with American QE - if it ever were to happen.

The classic Japanese mindset of what is yours is mine too, and what is mine is mine alone.

As Tigerta pointed out, the Japanese have to change there mindset and the days of living off selling to others, while blocking the others selling to you are gone and no amount of currency manipulation is going to change that fact.

0 ( +1 / -1 )

while Japan wouldn't mind getting a bit of German QE - just like it did with American QE yes it got plenty of American QE in the form of an abnormally weak $ and high yen. It certainly wasn't fun for us exporters. But now Japan has their own QE they all cry foul. LOL. Nah the BOJ like any other central bank can do how it pleases to support their economies, and just another reason nobody has labelled Japan / China currency manipulators directly or made any concrete steps to stop them, all talk and no nads.

-2 ( +0 / -2 )

wtfjapan

yes it got plenty of American QE in the form of an abnormally weak $ and high yen. It certainly wasn't fun for us exporters. But now Japan has their own QE they all cry foul.

I'm sorry, but apart from 2 months since the so called 'Crash of 2008' Japan has always had a current account surplus.

The whole point of QE in the 21st Century is to turn a deficit into a surplus by indirectly beggaring thy neighbor through cheaper imports of goods manufactured in your country...Japan already had a healthy current account surplus... Japan is greedy.

When was the last time the USA had a trade surplus, let alone a current account surplus, with the rest of the world?

Jeflee will correct me, but of the top of my head I think it was 1971/72.

The economic problem of japan is that the government spends too much money.

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"Japan is greedy" ..name me one country that isnt.

The economic problem of japan is that the government spends too much money. and the US or any other developed economy doesn't!? America continually insinuates that Japans / Chinas interventions/manipulations are the source of its deficit woes... The plaza accord of the 80s their own QE after the GFC is proof that they're not. Continued use of the yen as a safe haven currency is clearly one sided and doesn't reflect the health of Japans economy, Japan has every right to correct this imbalance if and when they see fit. Every central bank has the right to set policies that support their economies whether liked or not. China has and continues to do just this, other than some tough talk what have G8 members done about it?, sweet F all.

-2 ( +0 / -2 )

I've lost count of how many arrows we're at.

0 ( +0 / -0 )

The country is relying on an outdated economic model. The government should cut waste, increase immigration and reduce red tape.

1 ( +1 / -0 )

wtfjapan

name me one country that isnt.

Most countries would just like to balance their current accounts and China is making a very concerted effort to wean its economy off dependence on exports and more reliant on domestic demand.

For Japan its too late, they should have done likewise at the end of the 80s. Now it's too late because a shrinking working demographics means the domestic demand is shrinking. Instead the LDP kept with the same mercantilist mindset, thinking it would suffice forever, when clearly past examples had shown them (Britain in the 19th Century and the US in the mid 20th Century) that it was going to fail.

Now Japan is addicted to abnormal current account surpluses for the revenue repatriated Japan Inc profits gives them through corporate taxes and the latest whinging about the yen's strength is really an attempt to keep the same old mercantilist export model in place.

The Japanese Yen, relative to economic factors such as the current account surplus should be in the mid 90s to the dollar

0 ( +1 / -1 )

The Japanese Yen, relative to economic factors such as the current account surplus should be in the mid 90s to the dollar, sorry I doubt that, US economy is doing relatively well compared to others and as their inflation is approaching the 2% thresthhold they'll have no choice but to raise interest rates later this year. I doubt the Yen will stay or should stay in the 90s for any significant amount of time. When or if Japan does reach it 2% inflation target and the economy recovers to something that resembles health then sure 90s if a fair range to be in.

-2 ( +0 / -2 )

wtfjapan

sorry I doubt that, US economy is doing relatively well compared to others and as their inflation is approaching the 2% thresthhold they'll have no choice but to raise interest rates later this year.

The US economy has no concerns over deflation or inflation, the US economy's concern is wage stagnation.... please do a bit of reading.....thus the influence of NF payrolls on Federal Reserve policy

When BOJ policy and government economic intent lowers itself to the concerns of second hand car salesman from Japan, then you might have a valid point to make, until then..............

-1 ( +0 / -1 )

look we could argue till this thread runs out of room, but the fact remains when and if the JPY raises into the 90s for any period of time the BOJ will intervene. and there's nothing part time currency speculators can do about it. I for one and glad I'm an exporter and not an importer, oh I haven't sold a second-hand car from Japan for over 10yrs. yet a close friend of mine still does and makes at least 6 million yen profit a month doing it! (not including the tax reimbursement from the J-government at the end of the year) not bad for an high school drop out, second-hand car salesman indeed LOL

0 ( +0 / -0 )

And with the recent turmoil in Europe it'll be more of the same in June!

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