Topic: {Economy} What is happening in Japan? (Read 356 times)

I think so because Shinzo Abe is popular and has influence in Japan. So usually the news of the death of a famous person will affect the Japanese
economy, especially his death due to murder. But after I read some update news and asked my friend who was in Japan, my guess turned out to be
wrong. The sad news of the death of the former Japanese Prime Minister did not have much effect on the Japanese economy. After a few days after
the death of Shinzo Abe, the Japanese stock index was seen to have slightly jumped and the YEN value also seemed to have strengthened.

I think that there is nothing new about the economic situation in Japan. Japan is the third trading power in the world and one of the best economic and technologically advanced countries. The country, like all other countries, was affected by the first and second wave of Corona, which led to a contraction of 0.2%, which is a small percentage as you can see, as I read in Some websites reported that the Japanese Cabinet approved an additional budget of 2.7 trillion yen (21 billion dollars) for the current fiscal year, which began last April. This budget aims to mitigate the factors of rising energy, food and other commodities prices as a result of the Ukrainian crisis. This measure is expected to contribute to improving the economic situation in Japan until the end of the year.

Economy of Japan will not be stable for a while, it’s going to get damaged from this. It is not the first time a politician gets attacked in Japan, but this is a big news for sure. I believe that we are going to see Yen getting lower for a while.

It already dropped a small bit, and it is going to probably drop a bit more, and that’s going to be something terrible for all of us because Japan is a g7 rich nation and it is always bad for the rest of the world to have a g7 nation doing badly. It means that less import/export business would be available, because nobody wants to do it when it's volatile. In the end, it will get regular and we will forget about this eventually too.

How can you make so many mistakes in just 3 lines of text?
Japan is the third-largest economy in the world, inflation was never a factor in Japan, actually, Japan experienced deflation, and there was no Irosima issue, maybe you're thinking of Fukushima but god knows how you can mistype that so bad, and how Jpana will be the base for very small countries, that's another mystery.


Oh really:?

How can you even quantify this? How can you claim it has affected the economy when it happens just 5 days ago?

Although Japan has the status of being the third largest economy in the world, still the impact of COVID-19 and also the Russian invasion of
Ukraine it dealt a hard blow to the Japanese economy. There is a lot of data that we can find on the internet that Japanese household spending
has decreased, it is due to rising energy prices, eventually suppressed the pace of business in Japan. So Japan is also now trying to improve
its economy, and the assassination of Shinzo Abe at least affected the Japanese economy a little, although not so much. And also based on
the information I read on the Asahi Shimbun, the killer and his family did go bankrupt and it was proven that economic difficulties could be
a trigger for crime.

Of course the assassination that happened to the former Prime Minister of Japan will not affect the crypto market, because it has nothing to do
with the death of Shinzo Abe and cryptocurrency. So don't because the price of Bitcoin is back down now, it has something to do with Shinzo Abe's
death. The Bitcoin drop was completely unrelated to Shinzo Abe's death. After all, the decline in the price of Bitcoin is still fairly normal, because
it has been a long time the price of Bitcoin has been stable, not far from the price of $20k. What we can do right now is to be patient and wait for
the bull market to come.

It may seem as if Japan is doing well, however the size of its debt is simply too big to ignore and it is not a problem that it is going to go away on its own and it needs to be fixed somehow, and personally I do not see it how they are going to fix that problem as it has gotten to a point in which I think is unmanageable, so even if the size of the economy of Japan is impressive we will not know what is its actual and real size until we see the current scenario playing out completely and they have to face the problem of their debt.

When you have one of the most famous presidents of a nation attacked and killed, the economy will collapse a bit, there is no doubt about that. It's not a common thing and maybe it's not really shocking to Japan because they had these type of stuff in their history before, but hasn't been that many since the social media age, we didn't really see it all around the world news all that commonly. Now we are going to see how their economy will be impacted.

I still think it's not going to impact crypto though, like what does Abe assassination and crypto have in common? That looks like something totally unrelated and would not matter to crypto world at all.

Being the 3rd biggest economy in the world, I would say not bad at all, they are mourning of course because of the death of their longest serving Prime Minister.

They are not a BAD case because of Abenomics, even if Japan's population is decreasing, the workforce policies that are set was to welcome women, and immigrants and even seniors.

Japan will stay to be a powerful and rich nation. Just because they are doing worse, doesn't change the fact that other nations are doing even worse to keep them there. So lets assume that you went down %10, if all else went down %20 then you are doing fine. The sad news of Abe will definitely impact it in the coming months, its not a shock that foreigners would not want to further invest at this moment after such deal, which does impact the nation, but they are big enough to do what they want with their own economy. Crime would continue to be whatever it is, its globally known, and have movies about it, so nobody should consider it a calm place. Doesn't mean its like mexico neither, its just a metropolitan place with some crime, just like how New York had/has five families, but doesn't make New York "unlivable" suddenly.

Japan GDP was top 5 in the world next to USA,China.Inflation in the Japan was the root cause for the variation in the GDP/Debt ratio.The economic conditions of the Japan was unique over a far period of time.Japan was not affected after the Irosima Issue,they come back to the stable situation by the stop of nuclear production.So their economy was easily recovered one.Japan will be the base economy for many of the very small countries.

The economic situation at Japan is simply unsustainable, not only they are the most indebted country around the world in terms of debt to GDP ratio, their demographics are also terrible as their population is going down every year and there is less people working in order to pay the government debt, this means that at some point Japan will have to default on its debt, and when that happens all hell will break loose and most of the economies of the world will enter a recession or even a depression after it.

Japan's crime rate has always been misleading.

If police in japan find a body with cigarette burns and obvious indications of torture. They'll label the case "suicide" if they have no leads. To ensure their statistics for solving cases continue to look good. This trend has been documented for many years. But has not received much publicity.

I think edged weapons like knives and swords are preferred tools of violence in japan. Due to them being harder to trace and identify than guns.

The yakuza were the main faction of organized crime in japan. Recently, japan passed laws cracking down on yakuza which prevents them from owning phones, having bank accounts and barring them from other essential daily necessities. It would seem the yakuza are being replaced by other forms of organized crime. And perhaps we're seeing indications of this with Shinzo Abe's unfortunate assassination attempt.

In terms of growth, if Japan continues to be a deflationary sland of it's own obviously it is going to lag behind many big economies in GDP growth sooner or later. To increase the pace of it's GDP growth it has to enter an inflationary scenario but that could be harmful for them considering the amount of loans that they are carrying also your country isn't a lucrative place for foreign investors as well if you are having a deflationary currency for a very long time.

Politically, what's happening right now is that Abe was assassinated shocking the entire world primarily because of the fact that crime rate related to guns is very low in Japan at present.

Economically, they keep piling up pressure on workers like crazy creating a really bad work-life balance for majority of them leading to lower productivity in the long-term.

World leader? Lol. This was the dumbest prediction ever. Japan is a tech giant, but their military strength lags behind several countries primarily because of their numbers.

That's also their hiring foreigners for their manpower. Japan's economy is suffering right now and lots of aspects are affecting it including the number of their population. However, Japan is a strong country and they have been through lots of economic and political crises yet it still survived and recovered. Even other Asian countries are affected by the global economic crisis but I believe that Japan still has an edge when it comes to the recovery period.

It seems that the situation in Japan is beginning to take a very dangerous turn, as the media reported that the Japan ex-PM Abe assassinated while making election campaign speech


Source: https://www.reuters.com/world/asia-pacific/japan-ex-prime-minister-abe-may-have-been-shot-taken-hospital-nhk-2022-07-08/


I do not want to talk about political changes because the news is still interacting, but let's see the impact on the economic situation.

USD/JPY fell -0.06% to 135.9 as foreign exchange traders sought out the Japanese currency, following the news about Abe

,

In the past 5 years...  JGB volatility was stable like this


But move above occurred in 3 -days


Now the BOJ has NO CHOICE but to hold rates down.
Can investors afford 0% investments? with about 9% USA CPI inflation


Source and thanks @GenesisVol twitter account https://mobile.twitter.com/GenesisVol/status/1536962330570809344

BOJ were the originators of this whole QE yellow brick road we're on and they are the first to meet the Wizard.    Its worth a discussion of what we will find behind the curtain, it could shock the world to find QE is a load of baloney when it was supposedly genius.   Seems already obvious to me we're in a trash situation but until the mainstream consensus comes to this unfortunate conclusion we move in circles not progress towards any resolution.

Japan was suppose to be a super power. There was speculation in the 90's that they could use their economy to propel them as a world leader, but their economic growth stalled out, plus they couldn't keep a large military. Their economy will probably continue to slow with their debt/GDP being unsustainable in addition to their growing elderly population. They essentially don't have enough young workers to subsidize the older folks. That causes an economy to collapse extremely quickly despite what their debt might look like.

In my opinion, Japan's situation is not bad at all. In fact, it's downright enviable! It's amazing how they've been able to get away with this for so long.

They should be more concerned about their aging population and low fertility rate. With how the things are, they might have to import male sperm too in near future lol
But yea, debt is a problem too. But Japan has a very strong industrial base, and its economy is very export-oriented. This has helped Japan to weather the global recession fairly well. Japan's economy is also very efficient, with a very low level of unemployment. This is where the difference comes   A developing country would crumble and won't be able to invest in its future. A developed country like Japan can enjoy a bountiful present & future because of its industrious past.