Yen should go down to 220.
Don’t waste billions to defend it. The benefit of weaker yen outweighs the disadvantages.
Pro
1) Stimulate exports
2) Draws investment
3) Reduces debts
Con
1) Import prices up
It’s a comprehensive strategy
1) increase output efficiency
2) pass on the benefits to consumers not state and corporations take the haircut
3) culture adjustment
@SquawkCNBC Do it for average Americans.
Eliminate the tax on 401(K).
This tax hurts most Americans and ridiculous enough, our government doesn’t need this tax money. ( if government doesn’t need it now, it doesn’t need it for the future)
Don’t be panicking.
Domestic efficiency can set up the ground for weak currency and strong domestic purchasing power, if ( big if) the benefits of weak currency are passed down to domestic consumers and it requires adjustment in lifestyle (culture adjustment )
Japan is a unique country.
@takaichi_sanae
Fundamentally
1) small government
2) large private ownership
Stock market is the best government because:
1) most fair redistribution of wealth
2) best financial resources for new investments
3) unbiased judges of efficiency and direction of investment
A country with strong stock market is a country with strong economy, legal system, political structure and freedom.
@business Weaker yen is more beneficial than disadvantageous.
Hypothetically Japanese central bank can “short” its own currency. Then use the profit to pay off government debts.
Most Japanese debts are in domestic holders’ accounts. And in yen.
Let’s go 200.
@MarketWatch Government will tax your 401(K).
Government doesn’t need your money now to fund services.
Why does it want your money in the future?
Government doesn’t need your money but it wants it.
@TheEconomist Chinese exporters hate it.
Because
They get paid by yuan not dollar.
Math
$1: 7 yuan
Exporters get 700 yuan for $100 export.
$1: 6.8 yuan
They only get 680 yuan for $100 export.
@business Culture makes a nation.
The developed countries are developed is because they build into developed countries.
The culture of Latin American countries should center on building.
If you build it, they will come. God bless Peru.