Comments on: Strong yen is not Japan’s main problem

By: bothra

bothra — Wed, 01 Sep 2010 14:11:46 +0000

Atually the politicians of Japan are useless, they have no ideas how to handle the situation. Just by leanding more money the market wont change anything as no big or medium size company are asking for the money right now, everyone wants stability, the government has huge public debt and they have to think about it, by cutting public debt and wasteful expences.
But right now they should intervene the currency market and try to get the yen around 95 to 100 level, which will help the exporters and the economy and help japan to finish the deflation which is every important for Japan recovery and stability.
We need the things to fix up right now or it will be end to a great country and their very helpful & hard working people.

By: franwex

franwex — Wed, 01 Sep 2010 00:56:32 +0000

It’s not that easy for Japan to cut spending. Their citizens demand a certain amount of services from the government and it will be political suicide to trim it even slightly. I have faith in Japan; they’ll figure something out.

By: Gotthardbahn

Gotthardbahn — Tue, 31 Aug 2010 13:12:09 +0000

Gee, politicians spending too much. Is that what the problem is? Ya think?

By: nbywardslog

nbywardslog — Tue, 31 Aug 2010 05:48:16 +0000

If Japan runs a trade surplus but has large fiscal deficits caused by huge welfare spending, all it has to do is cut public spending, right?
I can’t believe it’s that easy. The UK & US have large govt spending and large trade deficits, but they’re not experiencing what Japan has.
And why is a currency in (intrinsic) danger from debt default regarded as a safe haven by investors? Surely if the country is making tons of money but spending even more, that’s a bad investment?
These and about 437 other things make up the too-easily rationalised nonsense that is national accounting and the global financing of capitalism. I’m a capitalist born and bred but too much capital in 2010 is notional rather than practical.
We need reform and we need it now.
http://nbyslog.blogspot.com/2010/08/bern anke-in-wyoming-blind-mans-bluff.html