Saturday May 26, 2012

JAPAN NEWS AND DISCUSSION

Do you think exchange rates should be fixed?

Have Your Say Dec. 01, 2009 - 04:44AM JST ( 25 )

Order by Time Order by Popularity

25 Comments

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societymikeDec. 01, 2009 - 08:40AM JST

No.

but the rumours of 79Y to the US $ this week sucks!!
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OkinawamikeDec. 01, 2009 - 09:06AM JST

Yes, it should be fix at the 1980's rates of 260 yen to the dollar.

But then again, I'm only thinking of me. $1 rum and cokes, 3 dollar beer!
0

DewaashitaDec. 01, 2009 - 10:19AM JST

The HK dollar is fixed to the British pound and the American dollar, roughly. There's good and bad. The fixed rate makes a currency a nice comfortable standard for long term trading partners to rely upon. It would be very easy to find the good and bad for both views. Hard to say.
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some14someDec. 01, 2009 - 12:03PM JST

Fix the economy problems and let exchange rates float !
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smartacusDec. 01, 2009 - 12:06PM JST

Definitely, they should be fixed. In fact, ever since I was a student, flunking economics, I have never been able to understand why exchange rates fluctuate each day The only explanation I can think of is that it is because of speculation and greed on somebody's part.
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thedeathDec. 01, 2009 - 12:41PM JST

learn from the last southeast asia economic crises and think again. fix currency doesn't help anything.
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apecNetworksDec. 01, 2009 - 01:04PM JST

For Japan, in the short term (until July 2010), yes. Fixed currency or an on/off fixed currency at times of volatility is mandatory. The global economic crisis occurred for a "reason", and the underlying reasons will play out for some time. I was indirectly involved in the Asian Financial Crisis in 1998, and PM Mahathir fixing Malaysia's currency w/ backing from an unknown force mitigated the currency crisis at that time. BOJ may be too isolated to know what is actually occurring, if the mid 1990's is any argument.
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thedeathDec. 01, 2009 - 01:21PM JST

Mahathir fix malaysia economic with a short cut, and it seem to work with malaysia's size of economic. it is not for the japanese size of economic. at the time some financial institution didn't even accept malysia money. or if they did, they will have another rate for it. it is not the rate that used in malaysia. one currency 2 vaule, it won't work with a massive economic size like the japanese one.
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apecNetworksDec. 01, 2009 - 04:19PM JST

To Thedeath:

Former PM Mahathir not only freeze the currency collapse in Malaysia, but more importantly, put a brake on the currency collapse "chain reaction" surrounding the country. The IMF has made comments supporting my claim.

Not an expert on Forex, but from my experience w/ the currency volatility in Japan in the mid 1990's, w/ contact w/ top people, freezing the Yen was an option that should have been looked at. Fixing the Yen exchange rate to a set number, similar to the Yuan, would be possible. One currency, two values is better than the net results in the 1990's - having two values is better than having nooooooo economy.

I posted to your previous statement:

"learn from the last southeast asia economic crises and think again. fix currency doesn't help anything."

Could you elaborate on the post? This issue is very important, current.
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apecNetworksDec. 01, 2009 - 04:35PM JST

Addendum:

Although I have heard from the rumormill that the PRC has some "whiz kids" handling the economy, they are going to post 8+% GDP growth THIS YEAR????? even w/ a fixed currency!!!!!
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thedeathDec. 01, 2009 - 06:39PM JST

@apecNetworks

I can not see what good for japan if she fix the exchange rate. Can you clarify what good she will benefit?

I can see one thing happen for sure if she do that. The G8 / G7 / WTO will kick japan out of the comity and possible (just a possibility) scansion of Japanese product too. that I can not see as a benefit to japan.

fix exchanged rate will not reflect the real demand of foreign currency in the country. it will also close the door of trading balance system which will only work in the flexible exchange rate system.

Simple say, when you buy one foreign product way more than you sell it out to that country. that particular foreign currency will be in height demand. If it has been going on long enough, it will push that foreign currency’s value higher therefore later it will push its import price higher too. and the higher price will reduce your domestic demand later. That is a healthy balance in the free market. no one can take advance too much for too long. The market will adjust and re-balance its self.

Look at the Chinese fix exchanged rate have done to the world today. It make its currency way lower than it should be. That makes every thing made in china so cheap, and it kill a lot of other 3 rd world country economic that play by the rule of the free market. it also hurt exporting countries like japan even EU and American got hurt because their products simply can not compete with the price offered by Chinese producer. When a country with economic and market side like china does that, it destroys all the balance in the free market. That creates a lot more problem to everyone. Do I have to clarify anymore than this? If your idea has been approve by a constitution like IMF, you should know this basic idea of free trade.

Fix exchange rate also open doors for any attacker as I said “learn from the last Southeast Asia financial crises and think again.”

If you read carefully what Mahathir said about George Soros you would know it. And if you analyze why Soros successfully attack the Thai currency you would be able to see that fix exchanged rate was playing a major roll there. Stupidity of thai government at the time that took all the country reserve to protect its currency did the finish off. I views Mahathir’s way of stop the attack as a smart short term solution. And that was during the region under financial attack. Don’t mix up with the problem we are facing today.

And why I say it will never work with a massive economic size like the Japanese one? That simply say, japan is not Malaysia. Japan need trade partner world wild. Destroy the trust by try to cheat the market? You will see what G8/G7 and WTO can do to japan. And japan is not china where she can produce cheap stuff feet the greedy investors.
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apecNetworksDec. 01, 2009 - 06:48PM JST

You are aware of the REAL economic situation of the G7?
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seesawDec. 01, 2009 - 10:32PM JST

No. no yet. Please allow me to enjoy the cheap Sterling and US Dollars for this year's Christmas and NY holidays...:)
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thedeathDec. 02, 2009 - 10:05AM JST

You are aware of the REAL economic situation of the G7?

i do aware, and i do know quite a few. i know what they are trying to do to fix it also do know why they want to bring china back to the game.

are you? you might know a lot than me, could you elaborate it? you still haven't clarify me of how the fix exchanged rate could benefit any good to japanese's economic. i did explain you how i think it won't benefit her.

actually from your answer about push yen to the same level with Yuan, i don't think you aware of the rule of the game everyone trying to push it to use today.

if we can bring china back to play the same rule as everyone do, it would bring the balance back. it will benefit a lot more to both developing and developed countries. and governments around the world would never have to intervene in the money market much. i don't see cheating the rule can fix anyone problem. it will just hurt more people and when people get hurt get angry, they will pay us back the long run.

by the way

Mahathir not only freeze the currency collapse in Malaysia, but more importantly, put a brake on the currency collapse "chain reaction"

he put "the" brake on the Malaysian currency collapse, and that just happen to be only "a" brake on the crisis in the region. i don't want to give him the credit he doesn't deserve. after he freeze malaysian money "in the country", the crisis haven't slowed down at all. it still movie on to hongkong and south korea. hit them very hard, japan was partly effected too. it need a lot of government from both heavily effected and partly effected country work together and implement a new safer way of handle their own currency and business grow to actuary stop it.

one of the new way they use with their exchange rate is fixable rate system. and they are still using it today.
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thedeathDec. 02, 2009 - 10:08AM JST

sorry,

fixable > flexible
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DeepAir65Dec. 02, 2009 - 10:22AM JST

no - let them float, but please weaken the yen as I need to bring some money in!
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nisegaijinDec. 02, 2009 - 12:23PM JST

absolutely not! currency is a store of value. if currencies should be fixed to something, it's gold!
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Damien15Dec. 02, 2009 - 05:14PM JST

I think fixing currencies and prices can bring stability to our lives. But I don't know much of innerworkings of the economy. I think we are reaching the technological capability of automating food production and making it free for all. Surely it would be difficult to implement, but world without money can be a heaven. It's a the fact that 80% of the jail population are there for money related crimes.
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apecNetworksDec. 02, 2009 - 06:12PM JST

To Thedeath:

I do not believe I know a lot on fixed currencies. My views are from events that occurred during the mid/late 1990's. A form of a fixed rate or a flexible rate in some manner would have alleviated some of the problems back then. Back then, I was receiving inside info on events before they occurred, thus the info I have is somewhat specific. Specifically, if the Yen drops quickly, a procedure should be implemented to step aside of the volatility until stability returns. If nothing else, we are trying to maintain economic stability for all members.
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BadseyDec. 03, 2009 - 04:57AM JST

When you float your Fiat (paper) currency you open yourself to the money speculators. The Federal Reserve Cartel (Rothschild et al) are the bigtime players in this and are big enough to even bring an economy like the USA, Mexico, Germany down -and they have repeatedly. In order to protect your currency you must fix it or have it actually worth something (Not Fiat).

-Another play on this concept is when a private company goes public with stock.
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Damien15Dec. 03, 2009 - 05:14PM JST

Very good one Badsey. Talking about Rothschilds, did you know their latest worth is somewhere around 5 trillion$?? Bill gates has only 40 bil$.
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MittsuDec. 07, 2009 - 01:14PM JST

No, but we should go back to the gold standard.