Mr. Noguchi’s book about depreciation of the yen , I was interested in the past, but since the Kndle version came out I bought it.
“The exchange rate is the value of the country’s currency and therefore the value of Japan’s economic activities, so the depreciation of the yen is that the value of Japanese economic activity is valuated low. We can not understand easily, but it is dangerous condition. ”
I think it is exactly right, it is a book that we can understand that yen depreciation is a very dangerous for Japan.
Economy and finance in Japan continue to be in a crisis situation, and some economists say finance of Japan will collapse, but what kind of situation do they imagine concretely?
Is it going to be similar to the bankruptcy of a stock company or the financial collapse of Greece?
As the other people say, Japanese debts can not be ruined because the creditors are not foreigners but Japanese citizens.
The catastrophic situation that the current financial crisis of Japan and the economic crisis leads to will be an uncontrollable super-yen depreciation.
In Japan, which is heavily dependent on imports, including oil and food, prices will rise and real income will decline as the depreciation of the yen.
Nominal income will also decrease and real income will also decrease. The real value of our time deposits will also decrease.
Real income may be reduced so much that we can not live?
Even though the productivity of Japan as a whole is declining, japanese goverment make huge debts every year to keep expenditure same as before.
That leads to collapse of japanese economy.
It is scary.