Could we see a 100 yen = $1???

[ArmandV]

OTOH, if major governments in the world did not cooperate in a coordianted global fiscal stimulus, we would all be in a major worldwide depression by now. 10% unemployment--ppffff! It could have easily been over 20. The dollar is weak because of decades of U.S. overconsumption.

I was dead-set against the stimulous as it was just a big pile of money (i.e., a slush fund) for the politicians to play around with. It did nothing for the economy and now we're saddled with an enormous debt that will never get paid.

How's that "hope and change" working out for you?

I noticed that the dollar crept up a tad vs. the yen (about 89 and change yen/dollar) today.

 

[Astroboy]

I was dead-set against the stimulous as it was just a big pile of money (i.e., a slush fund) for the politicians to play around with. It did nothing for the economy and now we're saddled with an enormous debt that will never get paid.
How's that "hope and change" working out for you?
I noticed that the dollar crept up a tad vs. the yen (about 89 and change yen/dollar) today.

I believe that US government economy stimuluos package, or government expenditure, is indispensable to sustain US economy because private sector in USA has been reducing expenditure. Either wasteful or meaningful is not a question because our economy consists of "Spending" "Government expenditure" and "Investment". It is too early to seek exit policy.

In short, "somebody's expenditure" is "somebody's income" in terms of macro-economics.

 

[ArmandV]

I believe that US government economy stimuluos package, or government expenditure, is indispensable to sustain US economy because private sector in USA has been reducing expenditure. Either wasteful or meaningful is not a question because our economy consists of "Spending" "Government expenditure" and "Investment". It is too early to seek exit policy.
In short, "somebody's expenditure" is "somebody's income" in terms of macro-economics.

Show me a country who spent itself into prosperity.

 

[Dogen Z]

Show me a country who spent itself into prosperity.

China, the first country that injected a huge fiscal stimulus to its economy, is poised to meet its 8% growth target.

OTOH, North Korea, that couldn't spend any money on its economy, is on the verge of economic collapse. It's currency is now worhless. (I hope China & S. Korea can help it.)

 

[ArmandV]

China, the first country that injected a huge fiscal stimulus to its economy, is poised to meet its 8% growth target.
OTOH, North Korea, that couldn't spend any money on its economy, is on the verge of economic collapse. It's currency is now worhless. (I hope China & S. Korea can help it.)

China is an interesting pick. They've an interesting economy with a blend of communism and capitalism.

It is also funny since China has expressed deep concern over Obama's spending.

 

[Dogen Z]

China is worried about U.S. spending only because it wants to protect its own foreign exchange reserve, not the direction of the U.S. economy. U.S. govt spending is a problem now because of past deficits, but still needed to prop up the economy.

 

[EmperorHirohito]

At this moment in time the US Dollar is worth 88 Yen, a long way off the 100 Yen to one US Dollar, in currency terms. Of all the major currencies that are out there it is the British Pound that is possibly doing better as its now stands at 143 Yen to one British Pound.
For anyone who may be interested in the Euro, it is now trading at 130 Yen to one Euro.
Currency markets are so much fun.

 

[Astroboy]

The dollar slid to a 15-year low beneath 83 yen on Tuesday after Japan's prime minister won a leadership vote and the euro hit a one-month peak against the greenback after piercing a key technical level. Dollar sells off after breaking technical levels

Currency of Zombie Japan soar again. It is bad for exporters, but good for importer. Soared yen is also good for overseas investment - purchasing foreign companies/assets - as well as travelling abroad.

If I can spare time, I wish to go Bellissima Italy ! from Zombie Japan.

 

[Grandpa Frank]

WOW ! Quite a change from 1970.

I felt rich back then with $1 dollar US = 360 YEN.

Uncle Frank

 

[Half-n-Half]

I only hope the dollar doesn't appreciate just in time for me to come home

 

[hsakakibara1]

The US dollar will continue its decline. It may see the 70s level. But why, if Japan is such an economic "sh*ithole" the way so many of the contributors on this forums claim it to be, is this happening?

It is not only because of a "flight to safety" but that on the whole Japan is not doing that badly. Countries like China are divesting themselves of the dollar. They will, however buy US corporations for their know-how. They are doing so even, now, but ever-so-quietly.

 

[AJBryant]

I felt rich back then with $1 dollar US = 360 YEN.
Uncle Frank

Them was the days.

 

[Pachipro]

A recent article in Barrons has this to say about the high yen:

Japan's plight may not be as dire as its nominal exchange rate implies. According to Bloomberg, Eisuke Sakakibara, who as Minister of Finance in 1997-99 came to be known as "Mr. Yen" for his efforts to influence the currency's value, asserts today's exchange rate of 85 yen to the dollar isn't the same as the 80-ish to the dollar back in 1995. The domestic deflation in the intervening years makes Japan far more competitive. According to one calculation, the yen would have to equal just 55 to the dollar for its real exchange rate to be the same as 15 years ago. So, the yen has been less of a hardship than its nominal exchange rate versus the dollar implies.


Even so, the specter haunting U.S. officials is that America would have to go through the deflationary lost decades of Japan. To which, David Goldman retorts, "You should be so lucky."