Nikkei ends above 40,000 as yen falls to new 37-year low against dollar

Rising stock prices won't help much when poverty stalks the land. I never thought when I moved here in the 80s that Japan would become a poor country, but the economic decline here is becoming increasingly obvious.

Japan is not a poor country (at least not yet)... what is happening right now is that Japan was an extreemly wealthy country that has become above average wealthy country (it is still in the top 5 World economies).

Saying that Japan is a poor country is basically slandering and even extremistic... by that you either are in the top 3 or you are nothing (so 192 countries are nothing)

If how the economy and the politics related to that moves from here on will dictate what will happen in the next 40 years, I guess.

When was this fabled time exactly?

Japan was an extreemly wealthy country

1980's... you may have not born yet

But this combination of a soaring stock market/collapsing pathetic yen is just great for us foreigners as we all hold stocks and US Dollar accounts or Swiss Franc accounts etc. We are all making big money hand over fist without doing anything! Well done japan!

@umbrella

Congratulations for you financial management and dextrecity in making money. But this is a macro matter that affect all living in Japan and even to a global level.

That type of comment is not very polity and unwelcomed.

Next time maybe try to use less words such as "pathetic" and less sarcasm when you are trying to bolster your knowledge and luck in monetary matters.

Nice try. I visited Japan for the first time at a young age in 1984. Japan was doing well but to say it was rich is a bit of a stretch. That was peak Japan economic power though for sure.

1980's... you may have not born yet

Being the 2nd most power economy and the US really being frigthened that Japan may overtake them... Japanese private comapanies buying a lot of US and EU companies and assets (art collections, buildings, etc.), the "everyday" Japanese was able to buy a second house... usign JPY10,000 for a meal per person was nothing.

Not counting all the money given as international aid and investment.

You may need to revise your data.. but 1980s Japan was extreemly wealthy... so much so after the bubble busrted Japan has being able to stay in the top 3 economies for nearly 30 years even though the economic situation never really recovered.

But this combination of a soaring stock market/collapsing pathetic yen is just great for us foreigners as we all hold stocks and US Dollar accounts or Swiss Franc accounts etc. We are all making big money hand over fist without doing anything! Well done japan!

Well done you, but there's a downside. Newly rich foreigners could become targets/scapegoats if social inequality gets any worse here. The old money types know it isn't a good idea to flash the cash.

Japan isn’t poor but just looks poor. If you just go a little out and beyond Tokyo, like in Sagamihara, it’s looking run down with lots of orange brown rust on the beige cream painted pedestrian bridges. 1980’s and the Showa shacks are a dime a dozen.

They don’t seem to know about staining wood and new decks and all that wood sit in the rain unprotected. Park benches too.

as yen falls to new 37-year low against dollar

Even if the yen falls to pre Plaza-Accord levels. the manufacturing has moved to Vietnam, Mexico and other countries.

I have almost the same salary as I did 5 years ago, however in 2019, I was able to afford going to trips, hotels, save money, etc. Now the value of my salary almost halfed due to hyper inflation, and I can no longer afford going to hotels, trips, etc. I pay now more than double for food, expenses, etc.

Tell me again how Japan is not becoming a poor country?

I have almost the same salary as I did 5 years ago, however in 2019, I was able to afford going to trips, hotels, save money, etc. Now the value of my salary almost halved due to hyper inflation, and I can no longer afford going to hotels, trips, etc. I pay now more than double for food, expenses, etc.

Tell me again how Japan is not becoming a poor country?

Hyperinflation is what Germany experienced in the 1920s -- Japan isn't quite that bad, yet. But I feel your pain. Life used to be better here.

We are all the victims of complacent and incompetent LDP-led governments.

@DanteKH

You are confusing micro and macro factors... that you or your company is not able to increase your monetary power does not mean the entire country is the same.

Nevertheless, the situation of a cheaper yen affect directly to what is imports, this includes energy sources (oil and gas mainly) and that mean that prices increase for everything in every step of the production line.

Also, it is a reality that Japan economy is weaker than before and for the moment there is no inmediate solution to fix it, because there are many factors internally (reducion of labor force, aging population, etc.) and external situation (weariness of the entire Asian markets, US and EU policital situation, etc.)

DanteKHToday  06:02 pm JST

I have almost the same salary as I did 5 years ago, however in 2019, I was able to afford going to trips, hotels, save money, etc. Now the value of my salary almost halfed due to hyper inflation, and I can no longer afford going to hotels, trips, etc. I pay now more than double for food, expenses, etc.

Tell me again how Japan is not becoming a poor country?

I feel for your situation but this is multiple streams of income are important for everybody. Whether it's investments or some kind of side hustle on ebay. Everyone needs to have the ability to earn money from more than one place, or at least have the skills to do it so they can pivot whenever necessary.

Japan has a LOT of money... but that money is not really circulating. Is in hold or tight to investments or simply sleeping in a bank account of some type of asset.

The government does not posses it... nor the common citizen.... that left the money to be in the hands of business and not all business but only big ones the real big ones (basically the big five plus something in the side probalby)... if you want more money to be able to cover your needs, ask the big business hoarding that money to liberate it (they won't though)... but even if they do it, for you to see the effects of that money circulating will take a couple of years.

Why don’t they devalue the yen straight to 1000 yen to a dollars and get over with this everyday depreciation of the yen.

Watching the yen fall each day is very stressful.

Japan has a LOT of money... but that money is not really circulating. Is in hold or tight to investments or simply sleeping in a bank account of some type of asset.

You are right, Daniel. I am not an economist though. My original comment referred to the visible effects of poverty (pensioners counting out coins to buy a can of beer in a conbini to give one example).

The yen is in the toilet because the BOJ has refused to raise rates. You can borrow yen for next to zero interest and get paid 4% if you buy US treasuries. Thats why the yen is in the toilet. Japans economic outlook hasnt fundamentally deteriorated since Covid, but the currency situation has been very poorly managed.

I brought up two kids here. One now lives in Tokyo, the other in the US. It is the US one who is thriving. The Tokyo one is just getting by.

Raising children has become impossible for most people. When my kids were born a bit less than 30 years ago, I could (and did) earn up to 800,000 yen a month depending on my schedule. Granted, I had to work 30 days a week to do so and managed that for eight years (I almost had a nervous breakdown), but it was doable. Now, I don't think that is possible.

Most animals seem to have a genetic imperative to curtail reproduction when faced with overpopulation. Humans do not seem exempt from this. The next 50 years or so will be challenging as the world adjusts to going through this - and no advanced economy is exempt - but it is the new reality, and a slimmed-down global population will pay off in spades in the longer run.

I remember a couple of years ago, when the Gov was paying our tax money to restaurants and bars and other establishments a substancial daily amount if they shut their doors or reduced patronage until arbitrary times.

Even held an Olympics without visitors and shut the country off to most tourists for close to 2 years.

People worked remotely and stopped visiting their local bento or ramen place close to their offices for lunch and after work drinks.

Yeah, I am not suprised in the slightest that it's in the current state it's in.

Laughable that anyone thought that they were a rock solid set of ideas.

Sad chuckles all around.

Most animals seem to have a genetic imperative to curtail reproduction when faced with overpopulation. Humans do not seem exempt from this.

The falling birthrate has absolutely nothing to do with overpopulation. It's more about many choosing to worship money and focus upon the self. And since most us live in cities, there is no longer a need for children. We can get by perfectly fine without them (until we can't).

As for yen, preparing for 200.

And since most us live in cities, there is no longer a need for children. We can get by perfectly fine without them (until we can't).

In the past, people made children so that there is someone to take care of them when they get old. Nowadays, a lot of people think that someone else's children will do the job. Unfortunately, there won't be enough someone else's children for everyone. Japan is in the forefront of this phenomenon, but it's happening elsewhere too.

It's more about many choosing to worship money and focus upon the self.

"Worship" money? Most people in Japan are just struggling to survive. And who doesn't focus on themselves?

Imagine making a 200,000 yen a week doing nothing?

That is what I am doing with my foreign exchange!

Don’t like it?

Blame the Japanese government

Tim Sullivan: "Rising stock prices won't help much when poverty stalks the land. I never thought when I moved here in the 80s that Japan would become a poor country, but the economic decline here is becoming increasingly obvious."

No kidding! I have friends or their kids who had wanted to come live and work in Japan but have instead opted for Thailand or Vietnam, or even South Korea or China, where they get MUCH better wages and accommodation, and where living costs are a lot cheaper. I didn't think I'd see the day, but we're headed back to the 1900's when people left Japan in droves to seek a better life in places like Brazil.

Daniel Neagari: Stop saying Japan is the world's third-largest economy. It is fourth now. and soon it will be fifth, then sixth, and by 2030 likely not even in the top ten.

Indeed that’s the forecast out from the top 10. Yen is expected to drop soon to 170 as BOJ has no clue and will not raise interest rates due to weak corporate earnings and lower Gdp for the last 6 months.

Japan is not a poor country (at least not yet)... what is happening right now is that Japan was an extreemly wealthy country that has become above average wealthy country (it is still in the top 5 World economies).

Saying that Japan is a poor country is basically slandering and even extremistic... by that you either are in the top 3 or you are nothing (so 192 countries are nothing)

If how the economy and the politics related to that moves from here on will dictate what will happen in the next 40 years, I guess.

600 yen for a peach, I would say something is wrong with this country. The political elite get to eat all the peaches.

What if India, China and Africa Became Allies?

The combined populations of India, China and the Continent of Africa number some 4.32 Billion Souls. Consider that carefully. I put Africa into the mix mostly because China has been basically purchasing the continent our from under the African People for the past three decades. Imagine the economic, social and political power radiating from such a alliance? 

Combined financial and military power. The natural resources of basically two continents. A supreme super power basing its unity upon its reliance upon each other. China's financial and military might united with India's, and the cheap labor offered and managed found in Africa. The strategic location basically controls much of Asia and super imposes itself upon the EU and the UK. America will be isolated in its own sphere of influence in the Americas. These three allies can count upon themselves for all that they need. Self reliance brings power and influence.

this could be the undoing of the American Empire as we know it. It is feasible and a real threat to all democracy world wide. Could this be what China has been working towards for nearly a century? China has over a million active troops presently with the ability to bring to active service a further 2.5 million trained soldier, marines, navy and air force troops. India has approximately same capabilities but a smaller force, while the combined armed forces of Africa can easily meet over a million troops. China's troops are elite, as are many Indian troops. African troops have been and still are trained by a combination of EU and American/British personnel. Their military is a real threat that needs to be taken seriously. 

Western nations economies have become addicted to Asian products and their highly competitive prices. Our economies, infrastructure elements and even military products are dependent upon these Asian products. Is the west unable to turn on a dime and supply itself of all necessary products should such an alliance stop dealing with the west? The west is not self sufficient and many of its corporations, military and political personnel dependent upon their largess(payments-corruption-bribes).

The possibility that this alliance exists or being develop is high. Both India and China have expansionist attitudes towards their neighbors and their economies. India view Pakistan and Afghanistan as a major threat to its Hinduization. China wants Taiwan, Vietnam and Philippine territory and natural resources. Africa maybe viewed as a financial nest egg of cheap labor, vast natural resources and ideal strategic importance globally. 

Presently China and India are in talks to further bind their economic, military and political partnerships, mix mashing their trade capabilities to manipulate the global economy. Many African Nations have been significantly bought, purchased and politically managed by Chinese Intelligence and corporate agencies. Out right announcements of such an alliance can be coming in the near future. 

Steven Kaszab

Bradford, Ontario

skaszab@yahoo.ca

Sooner or later the yen will rebound.

That how economics works..

No drama here..

Imagine making a 200,000 yen a week doing nothing?

That is what I am doing with my foreign exchange!

Don’t like it?

Blame the Japanese government

Wow, open a TikTok account and share all your lying ponzi entrepreneurship garbage with the world..

What a phony, get a job...

LOOOOOOOOL

Presently China and India are in talks to further bind their economic, military and political partnerships, mix mashing their trade capabilities to manipulate the global economy. Many African Nations have been significantly bought, purchased and politically managed by Chinese Intelligence and corporate agencies. Out right announcements of such an alliance can be coming in the near future. 

Steven Kaszab

Bradford, Ontario

Are you trying to sell a book? That reads like a foreword to a geopolitical fantasy scenario.

First off, China and India could not be much less friendly. Nowhere near being allies. There have been multiple border skirmishes over the last several years with several Indian soldiers severely injured from Chinese buffoonery, and China continues its territorial bullying ad nauseum.

The chance of a Chinese Indian alliance is about on par with a Japanese-Chinese alliance. Its just not going to happen.

As far as Africa goes, it is one of the least cohesive, most infighting continents in the world right now. Light years from being any kind of cohesive force like the EU with anything approaching that level of cooperation. Many of the central, sub Saharan nations struggle with their own coups, revolts, and paramilitary juntas on a yearly basis, and that’s not even touching the horrendous social and economic situations of many of those nations, sadly.

So..no. China will be on its own aside from a few meager puppet states as it attempts to bully the world for the foreseeable future. We’ll see how far that gets them.

Japan is not a poor country (at least not yet)... what is happening right now is that Japan was an extreemly wealthy country that has become above average wealthy country (it is still in the top 5 World economies).

Saying that Japan is a poor country is basically slandering and even extremistic... by that you either are in the top 3 or you are nothing (so 192 countries are nothing)

Stop looking at GDP as an indicator of how individuals in a country are doing. GDP per capita is what you want to base that on, there you will find Japan on rank 38, currently a couple of ranks below South Korea. At the top you will see countries like Norway and Luxemburg, The US is currently at 8.

Wow, open a TikTok account and share all your lying ponzi entrepreneurship garbage with the world..

What a phony, get a job...

LOOOOOOOOL

.

The signs re the yen have been plain to see for a long time.

Check out my previous posts where I have consistently posted my views on the yen along with David Brent.

TikTok?

Actually, I’m too focused on today’s lunch.

Wagyu or sushi?

WDYT?

Actually, I’m too focused on today’s lunch.

Wagyu or sushi?

Sushi all the way.. offers the best cost/performance for your yen. Wagyu is way to expensive for what you get.

Stock markets aren’t the real economy!

and the only ones who can benefit are if people can AFFORD to invest.If you can’t afford it, your paying your money to the investors in the fake belief paying 5000 yen a month will somehow transform you life in 40 years.(especially in the nikkei 225. Now companies , sorry shareholders,will squeeze those bonuses, so they get the dividends (let’s just rename it bonus) and your bonuses get reduced over the future years. I believe if A company has eg 100 dollars it can either pay the worker a decent salary , who can improve their life or spend it on their kids/family,or the company can give it to the shareholder machine. The shareholder machine will not help Mr and Mrs Honda. It’s all gotta sit there for 45years. By that time you’re too old or too sick to really enjoy it. Some will but most won’t. The proof is, the nikkei 225 is at it’s highest and yet how’s our hourly pay. Still poop!