Sankaku Complex Forums » Japan

1. 

   tingle
   

   
   Inflation serves two purposes. It fucks anyone with savings, and it devalues the amount of debt you hold.

   The fucking anyone with savings is interesting because it tells businessmen you have to invest NOW and if it brakes even at least you won't LOSE that 1%. If they are on the fence they MUST invest to keep their money level stable as opposed to in a good economy where you do it for profit. This is helpful as it does make private sector jobs and keeps that money flowing. ASSUMING he invests it inside Japan and doesn't ship the job to hated China like Nintendo and Sony did.

   I would suggest the US hold off on inflating until I buy my house. That way my mortgage debt shrinks in value.

   Of course so will my paycheck as this also lowers the minimum (and ANY) wage in terms of real value. This is basically what Quantitative Easing is. We've done TONS of that recently.

   This would actually help Greece but there is a slight problem. ONLY Greece wants it, the fiscally sane Europeans (Finland = Winland) would be screwed by this.

   Of course no one wants to be Zimbabwe or the old Wiemarcher republic, who inflated so much they fucked themselves with valueless money.

   http://www.slate.com/blogs/moneybox/2012/02/15/for_the_first_time_ever_bank_of_japan_says_it_wants_inflation.html

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   Posted 3 years ago #
2. 

   Dan Hibiki
   

   ...

   

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   Posted 3 years ago #
3. 

   Kudi
   

   Japan's target means that they're retarded.

   As for Greece, everyone in Europe knows what the problem is; maybe your post is news to Americans, but it isn't to us. Of course, the fact that we know what the problem is doesn't mean anything will get done; the Euro is a political, not economic, project and having weak nations that compromise their independence by relying too much on their neighbours is seen as a good thing by people gunning for an EU federal state.

   Interestingly, Iceland is now once again considered "investment grade". Iceland was fucked very badly very early on in the crisis. But since they weren't part of the Eurozone, or even part of the EU, they were able to devalue their currency appropriately and are now back on track.

   Posted 3 years ago #
4. 

   Dark Mage
   

   A lower yen can actually be beneficial to an export driven economy like Japan by reducing the cost of their products overseas.

   The big problem here is oil prices are artificially high if oil went down a lower yen plus lower cost energy could kick start the Japanese economy.
   Japan is a fairly small country so transport is not as affected by high energy costs as lets say the US or China but present prices are crippling to any economy.

   Posted 3 years ago #
5. 

   tingle
   

   Char said:
   A lower yen can actually be beneficial to an export driven economy like Japan by reducing the cost of their products overseas.

   I never thought of that. That's EXACTLY what China has been doing with the Yuan isn't it?

   Posted 3 years ago #
6. 

   Winter loli fairy
   

   1% inflation is nothing. Really.... deal with it. I think there was an african country that had 1000000% inflation and a bread cost billions. My country have a target of 3% but probably will end with 10% again.

   Posted 3 years ago #
7. 

   tingle
   

   dgmikep said:
   1% inflation is nothing. Really.... deal with it. I think there was an african country that had 1000000% inflation and a bread cost billions. My country have a target of 3% but probably will end with 10% again.

   Zimbabwe I believe.

   

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   Posted 3 years ago #
8. 

   GTR
   

   Japan has set a 1% inflation goal, what does that mean?

   ...to prevent getting sucked into debt-deflation spiral again?

   U.S. almost got into one like 2 yrs ago but avoided it thanks to Bernanke's split second decision.

   Posted 3 years ago #
9. 

   tingle
   

   GTR said:
   Japan has set a 1% inflation goal, what does that mean?

   ...to prevent getting sucked into debt-deflation spiral again?

   U.S. almost got into one like 2 yrs ago but avoided it thanks to Bernanke's split second decision.

   which decision was that? He made a lot two years ago.

   Posted 3 years ago #
10. 

    McSquid
    

    GTR said:
    Japan has set a 1% inflation goal, what does that mean?

    ...to prevent getting sucked into debt-deflation spiral again?

    U.S. almost got into one like 2 yrs ago but avoided it thanks to Bernanke's split second decision.

    Yeah, but the reckless spending on the fiscal side that Congress is doing isn't helping either. Businesses and consumers have been afraid to spend money themselves because of all the uncertainty which is basically taking away a good chunk of the liquidity out of the domestic currency market, thus negating a lot of the "stimulus" effect deficit spending would possibly have.

    Posted 3 years ago #

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