High Yen

One week ago, I gave up writing blog, because of sleepiness.
I added some my opinions oh the previous blog.

The yen is still getting strong against the dollar.I had predicted a couple of years ago, because house prices of US were so expensive. As thinking a career wage of ordinary people, it’s not a real price but an expected price.
Well, how do they buy a house?They paid money to purchase a house, even take out a loan. It’s a dream, as an expectation house price will be rising, for their future. I feel a little jealous of American positive thinking.It was supported by strong expectation and huge amount of dollar in the market.
US population is growing, The strong expectation is supported by this reason, Actually, growth population will lead to intermittent inflation.
Japanese gorverment also trys to promote this fiscal policy, issue a huge amount of government bonds in prospect of economic growth and inflation.
It seems like shoesstring operation. It isn't secure. Luckily, A lot of Japanese companise are fighting against the inflation. Inflation might generate new risks of instability.
I think, today there are huge amount of extra dollars on the market. In fact, it brings an increase in excess investment. It sometimes flood on areas that generate profits, and when investor give up on, it flow out to new areas that generate profits. It's like a game.
I think the root cause of extra dollars, comes from not collecting the dollars by the Federal Reserve. Federal Reserve just has been printing of dollars. Doing bad-loan after recession by printing of dollars, eventually, will depress the dollar's value.
It also will cause wealth and a secure future loosse.
In the other hand, in Japan, due to an aging society, the population of wokers is rapidly decreasing. We can hardly expect rapidly economic growth. but we don't like inflation, because, we have huge amount of savings. We afraid of depressing the Yen's value.
I think that IMF in general should take initiative for such things. I guess dollars had been too strong. I look forward to successful reform in IMF.
Well, Japan already is a mature society. So we don't need a lot of things, we should maintain in our lives. we just hope for a stable society. We know, we should do the reformation of society, from manufacturing industries toward service industries.

Now, globalization is undergoing rapid progress in Japan. We can't avoid even financial globalization, we should know that movements on the world stage .

Addition 2009.10.11
The October 7 of news week issue had an article which is cautious about American inflation fear.
Rather, he believed the inflation will occur by things deficiency and extra money, and he recomended positive economic stimulation. I think that the resent weak dollar happend by fallen credibility from printing huge dollars.