There was an error in this gadget

Monday, November 16, 2009

Japan's economy grew at 4.8% in 4th QT!

They blame it all on the fiscal stimulus FT Report. They would blame everything on the fiscal stimulus. But, it is what they say they want it to be- I guess.

The issue that has me concerned is; how do they, or, "did they", create value out of nothing? For example, they [Japan] ran the same cash for clunkers programme as did the USA. But, it was just to stimulate transactions? Wasn't it?

The trick was to get persons to but new cars at an affordable rate. But, would allowing cars to sit in inventory, rather than being purchased at a low price or at a loss, be a good thing?

I don't think that it would be a good thing and they would [Japanese officials] have to give us another excuse. Because, I don't know of any business that can stay in operation, if it sells its products at a loss or below the market value or real value! That's just me!

The issue to me is with the value of the YEN. As it stands, now, the YEN hovers under 95 YEN per $1 USD. A stronger YEN, means more relative value for Japanese products. Also, it means that the YEN is worth more than the USD and that would have increased speculation over the last few quarters.

Not bad. But, a stronger YEN, with a weaker dollar, may not be a bad thing. The US economy is not as sound as it once was, so if the Japanese have not found other consumers for their exporters, or, show themselves to be less worried about the Euro and other Asian currencies, then they are probably going to under perform- all circumstances considered- in the early part of the next QT.

Especially they would underperform if they depend on fiscal stimulus and cash for clunkers....which may not sound like a bad idea after all, considering that the YEN is stronger and they can create value, relatively, within their own economy!
Post a Comment