2010年1月11日月曜日

The policy of letting the yen fall in value

On January 7th, the financial minister Kan spoke that he will tolerate the lower yen. The maket recognized it as the policy of letting the yen fall in value on foreign exchange markets and the yen keeps weakening into 92yen.
Now, people have been discussing about the goverment intervention.
In my opinion, it's not fair policy. Japanese goverment tend to support the major companies. They depend on exports. Actually they make most of the profits, but Japan is also a resourceless country. If the yen go more weakening, the rising price of materials will happens. It means a real inflation, rather it is down in the value of the yen.
Besides, when the yen become lower, stocks will lift up regardless of riging GDP, because bringing in some foreign exchange. And business might be beginning to pick up by good mood.
I'm wondering if that is the best way.
Japan has a huge amount of govement bonds, the debt ration has reached 217% for GDP. It is the worst in the world, even America is 82%. Well, why Japanese goverment bond wouldn't tumble down, because it was trusted by Japanese companies as being outstanding through the world and Japanese huge savings, it's said to reach 1400 trillion yen. The real inflasion means the exploitation of Japanese property.
Recently, I was often impressed with the good service from bussiness efforts, but I got to hear a news which drop out from a price-cutting war. Export industries such as car and electric companies are the major industry in Japan. They got profits by exports and they always need the demand. Now, everyone goes to China and, after that will go to Africa. I wonder that we have to serch for new market for ever, what one would require to for the future?
I guess that the good point of Japanese is the trust, so Japanese bank or insurance company or walfare also could become a grobal service. They have a manual for aging society. Even emerging contries eventually go to it, especially in China, it will come soon.
In addition, in Japan, there is a need for law, such as consultation about contract and bond. We think that it is necessary a lot of money and time for the trial, but the trial is originally for the solution of problems. I guess, if it become quickly and cheaply and come in useful, that's bussiness will grow up.
Well, I bear no immediate relationship to these issues, but such a thing will have indirect effects on our life, and I can't see my whole life ahead of me, and I feel less secure.
After the budget cut, Japanese goverment spoke that they attached importance to science and tecnology. And then they should invest our budget in it. I wish the Japanese goverment would keep trying for the new future with far-sighted policies.

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