Comments on: Will the Yen Lose its “Safe Haven” Status as Japan’s Economy Deteriorates? http://www.newchinatrader.com/archives/japan-economy/ Identifying the best performing stocks in the world's fastest growing major economy. Tue, 22 Sep 2009 10:42:07 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Although Experts Said it Could Never Happen, U.S. Crisis Looking Like a Repeat of Japan’s “Lost Decade” | http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-592 Although Experts Said it Could Never Happen, U.S. Crisis Looking Like a Repeat of Japan’s “Lost Decade” | Thu, 26 Mar 2009 19:49:24 +0000 http://www.moneymorning.com/?p=5120#comment-592 [...] Money Morning News Analysis: Will the Yen Lose its “Safe Haven” Status as Japan’s Economy Deteriorates? [...] [...] Money Morning News Analysis: Will the Yen Lose its “Safe Haven” Status as Japan’s Economy Deteriorates? [...]

]]> By: Japan’s Exports are Halved by Crisis, Boosting the Odds for a Drop in the Yen http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-590 Japan’s Exports are Halved by Crisis, Boosting the Odds for a Drop in the Yen Wed, 18 Mar 2009 16:52:59 +0000 http://www.moneymorning.com/?p=5120#comment-590 [...] friends tell me that factories in the normally highly industrialized Osaka area have shifted to 15-day-a-month production schedules, and many salary men (Japan’s iconic office superheroes) are being encouraged to seek [...] [...] friends tell me that factories in the normally highly industrialized Osaka area have shifted to 15-day-a-month production schedules, and many salary men (Japan’s iconic office superheroes) are being encouraged to seek [...]

]]> By: Although Experts Said it Could Never Happen, U.S. Crisis Looking Like a Repeat of Japan’s “Lost Decade” http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-591 Although Experts Said it Could Never Happen, U.S. Crisis Looking Like a Repeat of Japan’s “Lost Decade” Wed, 18 Mar 2009 16:45:04 +0000 http://www.moneymorning.com/?p=5120#comment-591 [...] Money Morning News Analysis: Will the Yen Lose its “Safe Haven” Status as Japan’s Economy Deteriorates? [...] [...] Money Morning News Analysis: Will the Yen Lose its “Safe Haven” Status as Japan’s Economy Deteriorates? [...]

]]> By: Doug Flynn http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-585 Doug Flynn Wed, 25 Feb 2009 17:22:51 +0000 http://www.moneymorning.com/?p=5120#comment-585 To elaborate further on your concerns that should China & Japan (the largest buyers of US Treasury debt) stop purchasing, I just read the following..."Indeed, troubling for the US fixed-income market is the sizable, single-month net sale of Treasury Bonds by China and Japan during November. The Chinese dumped -$9.16 billion of T-Bonds and T-Notes, a glaring reversal relative to net purchases of $46 billion over the previous four months...while Japanese sold another -$7.7 billion of Treasuries in November, to mark the fourth consecu- tive monthly net sale, and a cumulative liquidation of -$38.5 billion since the beginning of August. To elaborate further on your concerns that should China &
Japan (the largest buyers of US Treasury debt) stop purchasing, I just read the following…”Indeed, troubling for the US fixed-income market is the sizable, single-month net
sale of Treasury Bonds by China and Japan during November.
The Chinese dumped -$9.16 billion of T-Bonds and T-Notes,
a glaring reversal relative to net purchases of $46 billion over
the previous four months…while Japanese sold another -$7.7
billion of Treasuries in November, to mark the fourth consecu-
tive monthly net sale, and a cumulative liquidation of -$38.5
billion since the beginning of August.

]]> By: stan http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-588 stan Tue, 24 Feb 2009 20:10:24 +0000 http://www.moneymorning.com/?p=5120#comment-588 This is a very interesting post. The Japanese economy is receiving a good deal of attention in the US media right now because of the comparisons - right or wrong - to the US's current economic situation and Japan's "lost decade" in the 90s. This clip from Newsy (http://www.newsy.com/videos/japan_s_lessons_for_u_s_economy/) focuses on what the US can learn from Japan's experience. One Republican strategist featured in the clip repeats the GOP talking point that you can't raise taxes on individuals and corporations in the midst of a depression... like Japan did in the 90s. Perhaps you could comment on this statement. Is it true or not? And if so, why? I enjoyed your nuanced post on the Yen, and was hoping you could provide some further insight on the questions I mentioned above. Thanks. This is a very interesting post. The Japanese economy is receiving a good deal of attention in the US media right now because of the comparisons – right or wrong – to the US’s current economic situation and Japan’s “lost decade” in the 90s. This clip from Newsy (http://www.newsy.com/videos/japan_s_lessons_for_u_s_economy/) focuses on what the US can learn from Japan’s experience. One Republican strategist featured in the clip repeats the GOP talking point that you can’t raise taxes on individuals and corporations in the midst of a depression… like Japan did in the 90s. Perhaps you could comment on this statement. Is it true or not? And if so, why? I enjoyed your nuanced post on the Yen, and was hoping you could provide some further insight on the questions I mentioned above. Thanks.

]]> By: Cesar Cabrera http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-589 Cesar Cabrera Tue, 24 Feb 2009 19:03:18 +0000 http://www.moneymorning.com/?p=5120#comment-589 Further more to this situation, No one is really looking to the next 3 or 4 years to come. Climate changes are going to even worsen the actual economic situation. It seems impossible, but if the world big economies start working hand to hand in order to solve this problem, we might be able to overcome this situation. Best regards, Cesar. Further more to this situation, No one is really looking to the next 3 or 4 years to come. Climate changes are going to even worsen the actual economic situation.
It seems impossible, but if the world big economies start working hand to hand in order to solve this problem, we might be able to overcome this situation.

Best regards,

Cesar.

]]> By: Paul Coote http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-586 Paul Coote Tue, 24 Feb 2009 16:19:54 +0000 http://www.moneymorning.com/?p=5120#comment-586 Keith, this report on Japan is frightening. As we all know, the aberrations in the Japanese Economy that led to Japan,s recession is similar to the US economic meltdown. If the tributaries to the US economy continues to fall apart, can you imagine the continued financial mayhem that still awaits us on the horizon. Is this an ominous sign that the Us has a far way to go? I do look forward to your follow-up report on Japan and the present administration needs to pay close attention to this report. Keith, this report on Japan is frightening. As we all know, the aberrations in the Japanese Economy that led to Japan,s recession is similar to the US economic meltdown. If the tributaries to the US economy continues to fall apart, can you imagine the continued financial mayhem that still awaits us on the horizon.
Is this an ominous sign that the Us has a far way to go?
I do look forward to your follow-up report on Japan and the present administration needs to pay close attention to this report.

]]> By: John http://www.newchinatrader.com/archives/japan-economy/comment-page-1/#comment-587 John Tue, 24 Feb 2009 13:31:17 +0000 http://www.moneymorning.com/?p=5120#comment-587 Keith, You are so right about the deteriorating Japanese economy. But let me also tell you this: First, Japan has never been run on an economic model that is taught in business schools. The supply vs. demand rationale is out the window. Prices in Japan are out of whack. When demand declines, they increase prices to make up for the slack rather than reduce prices to increase supply to make up for the shortfall. They operate completely contrary to conventional rules. Very naive. Only recently, have you seen some prices come down. But in this country they don't think with their head. They just follow what others are doing. It is all group oriented. No one wants to be ostracized in this culture. Second, Japan's population is facing something most countries have never anticipated. Yes, a declining one. You cannot have long term economic growth with a population currently at around 120 million projected in 50 years to be less than 80 million. Let's face it. Japan has no direction of its own. Look at the Nikkei. Its average is pretty much aligned with the Dow. Just a follower. Furthermore, with the Nikkei hitting over 38,000 on the last business day in 1989 and today it is just above 7000 speaks volumes. The yen is way overvalued. It just can't make much sense being below 125 yen to the dollar. Frankly, it ought to be 200 yen to the dollar. I think Obama is making a serious mistake to inject so much money into the US economy without allowing the market time to adjust accordingly. While this may be called the trillion dollar mistake, Japan not following a rational business model is far worse and should and will cost the value of the yen quite dearly. Calling Japan's failure in re-energizing its economy since the bubble burst in 1990 a 'lost decade' is an understatement. As far as I can see in the future it has no way of bouncing back. Not with the way they conduct business. Japan may learn a costly lesson with all this. And the yen should and will reflect that sooner than later. Keith, You are so right about the deteriorating Japanese economy. But let me also tell you this:
First, Japan has never been run on an economic model that is taught in business schools. The supply vs. demand rationale is out the window. Prices in Japan are out of whack. When demand declines, they increase prices to make up for the slack rather than reduce prices to increase supply to make up for the shortfall. They operate completely contrary to conventional rules. Very naive. Only recently, have you seen some prices come down. But in this country they don’t think with their head. They just follow what others are doing. It is all group oriented. No one wants to be ostracized in this culture.
Second, Japan’s population is facing something most countries have never anticipated. Yes, a declining one. You cannot have long term economic growth with a population currently at around 120 million projected in 50 years to be less than 80 million.
Let’s face it. Japan has no direction of its own. Look at the Nikkei. Its average is pretty much aligned with the Dow. Just a follower.
Furthermore, with the Nikkei hitting over 38,000 on the last business day in 1989 and today it is just above 7000 speaks volumes.
The yen is way overvalued. It just can’t make much sense being below 125 yen to the dollar. Frankly, it ought to be 200 yen to the dollar.
I think Obama is making a serious mistake to inject so much money into the US economy without allowing the market time to adjust accordingly. While this may be called the trillion dollar mistake, Japan not following a rational business model is far worse and should and will cost the value of the yen quite dearly. Calling Japan’s failure in re-energizing its economy since the bubble burst in 1990 a ‘lost decade’ is an understatement. As far as I can see in the future it has no way of bouncing back. Not with the way they conduct business. Japan may learn a costly lesson with all this. And the yen should and will reflect that sooner than later.

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