cowmadagan
Sergeant
- Messages
- 393
I've heard a whole whack of times that Japan's in trouble, but I always thought it was because the cost of living is too high, birth rates are dropping, and they just can't get much growth year after year.
If you're like me and haven't seen the actual figures, here you go.
Kan Urges Bank of Japan to help overcome deflation
It confused the hell out of me originally because they've been complaining about the JPY being too strong. It makes sense to me to just intervene and collect all this free money and keep it as reserves, and then use the reserves against the debt.
Well, that ain't gonna work. We're talking about a national debt of $10 trillion USD compared to their reserves of $1 trillion USD. Also, I've seen that about $½billion dollars tends to change a major currency pair by about 0.4 to 0.5 cents at the absolute most. So an intervention from 89 to the target of 95 would yield a meager $10-12 billion USD. Baby steps would also need to be taken to make sure the market didn't decide to amplify the decline and eat away at the reserves in a strengthening countermeasure.
blah blah blah
If you're like me and haven't seen the actual figures, here you go.
Kan Urges Bank of Japan to help overcome deflation
It confused the hell out of me originally because they've been complaining about the JPY being too strong. It makes sense to me to just intervene and collect all this free money and keep it as reserves, and then use the reserves against the debt.
Well, that ain't gonna work. We're talking about a national debt of $10 trillion USD compared to their reserves of $1 trillion USD. Also, I've seen that about $½billion dollars tends to change a major currency pair by about 0.4 to 0.5 cents at the absolute most. So an intervention from 89 to the target of 95 would yield a meager $10-12 billion USD. Baby steps would also need to be taken to make sure the market didn't decide to amplify the decline and eat away at the reserves in a strengthening countermeasure.
blah blah blah
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