How is the Yen strongest since WWII? I don't get it.

[alkemyst]

The Yen is currently trading at about 81 to $1USD...up until the early 70's it was at 360 to $1USD....back in 2000ish about double what it is now.

What's the basis everyone is reporting the Yen is the strongest it's ever been since WWII?

It's appearing to me they are trying to create a devaluation even further.

I am not getting this.

 

[Pray To Jesus]

$ going down = Yen going up. (value wise)

 

[alkemyst]

$ going down = Yen going up.

Did you even read the OP? Your answer is not applicable.

 

[the DRIZZLE]

Did you even read the OP? Your answer is not applicable.

The idea is the Japanese investors will have to bring their foreign holdings back to Japan to finance reconstruction.

 

[wuliheron]

It also appears that Tokyo and most of their industries were spared the worst of the disaster. If they can just get Fukushima under control they may have a real shot at a strong come back.

 

[Pray To Jesus]

Did you even read the OP? Your answer is not applicable.

WTF are you talking about? I did read the OP and what I said is perfectly applicable as it pertains to your OP.

All I see is $ to Yen comparison. Obviously if the value of the $ decreases then the value of Yen compared to $ will increase.

 

[Firebot]

The Yen is currently trading at about 81 to $1USD...up until the early 70's it was at 360 to $1USD....back in 2000ish about double what it is now.

What's the basis everyone is reporting the Yen is the strongest it's ever been since WWII?

It's appearing to me they are trying to create a devaluation even further.

I am not getting this.

Reread your first sentence.

If it takes 81 yen to make 1 $, it's obviously stronger then if it took 360 yen to make that same dollar.

In reality though, it's the US dollar dropping like a rock. Currency is relative. The Canadian dollar has been worth more then the US for a while, when less then 10 years ago it would take 1.62 Canadian dollars to equal 1 US dollar.

 

[alkemyst]

Yeah I was looking at it from a US standpoint, not a Japanese one. I still don't get the push to invest in Yen at this point as the stronger it gets the less dollars you get back.

However I am sure these people would be spending that money there.

All I know is with the economy since 2007ish and the Yen falling my dollar is worth about 40-50 cents in reality from half a decade ago. A typical lunch was about $20+USD and eating in an average 'family' type restaurant about $100USD.

It was so bad our friends covered food (to them the lunch was still $3-5 in Yen and dinners about $15-20ish), and we just sent them gifts from the US.

 

[matt0611]

Yeah I was looking at it from a US standpoint, not a Japanese one. I still don't get the push to invest in Yen at this point as the stronger it gets the less dollars you get back.

However I am sure these people would be spending that money there.

All I know is with the economy since 2007ish and the Yen falling my dollar is worth about 40-50 cents in reality from half a decade ago. A typical lunch was about $20+USD and eating in an average 'family' type restaurant about $100USD.

It was so bad our friends covered food (to them the lunch was still $3-5 in Yen and dinners about $15-20ish), and we just sent them gifts from the US.

I think you're confused on how it works. If you exchange your dollars to yen and then the yen gets stronger and you exchange your yen back to dollars you will have MORE dollars, not less.

Example:
say current exchange rate is 100 yen / 1 USD
I exchange 1 USD today for 100 yen.

One month goes by and the yen gets stronger.
The new exchange rate is 50 yen / 1 USD
I exchange my 100 yen for 2 USD (because 100/50 = 2)
Now I have MORE dollars than I started with.

 

[Thump553]

Labeling currencies strong or weak is so incredibly misleading I consider it to be intellectual malpractice to use the terms. Personally I'd rather use fat and thin, pink or blue, or any two other terms.

When a currency is "strong" that means it is high priced in relation to other currencies. Exports from the "strong currency" are more expensive, imports are cheaper.

For the US the desired state, IMO, is to have the dollar as "weak" as possible without going into junk bond territory, ie, endangering the dollar as the world's de facto base currency.

Once you understand what a "stong" vs. "weak" currency is, it is pretty easy to see that the yen being excessively strong at this point is not a good thing at all, especially for an economy so reliant upon exports. It means Japan will have to expend actual net capital to rebuild its country. The only positive factor is the false illusory one conveyed by the term "strong" (wrongly) implying stability and value.

Strong v. weak is only relevant to currency speculators/gamblers mostly in respect to the movement of a particular currency (ie, rapidly becoming "stronger" or "weaker") than the currency's absolute position.

 

[evident]

the yen has been hovering around the 80:$1 mark for the last two years almost.

 

[PingSpike]

http://money.msn.com/investing/the-perversity-of-japans-finances-jubak.aspx

 

[Texashiker]

How is the Yen strongest since WWII?

China has stripped the USA of our manufacturing jobs. Of course the Yen is going to get stronger.

The American dollar is based on what we produce - our gross national product. Since we produce nothing, our dollar is worthless.

 

[Thump553]

China has stripped the USA of our manufacturing jobs. Of course the Yen is going to get stronger.

The American dollar is based on what we produce - our gross national product. Since we produce nothing, our dollar is worthless.

Simple rhetoric without any basis in reality.

What does China's production have to do with the Japanese yen? They are completely seperate countries and strong competitors to each other.

And its patently and obviously dead wrong to claim the USA produces nothing and/or our dollar is worthless.

 

[Texashiker]

And its patently and obviously dead wrong to claim the USA produces nothing and/or our dollar is worthless.

Go to the local big-box mart, wal-mart, kmart, family dollar store,,,,, find a product made in the USA.

Come back when you find something and report what it is.

Just about the only thing the USA produces, is food.

 

[the DRIZZLE]

China has stripped the USA of our manufacturing jobs. Of course the Yen is going to get stronger.

The American dollar is based on what we produce - our gross national product. Since we produce nothing, our dollar is worthless.

Really? The US is still the worlds third largest exporter.

 

[Texashiker]

Really? The US is still the worlds third largest exporter.

Exporter of what? Food and manufacturing jobs?

Name some items that we build here in the USA. "Build" should not to be confused with "assemble". What parts do we actually build here in the USA and export? cars, phones, computers??? All assembled with imported parts.

 

[the DRIZZLE]

Exporter of what? Food and manufacturing jobs?

Name some items that we build here in the USA. "Build" should not to be confused with "assemble". What parts do we actually build here in the USA and export? cars, phones, computers??? All assembled with imported parts.

Heres the numbers for January. http://www.census.gov/foreign-trade/Press-Release/current_press_release/exh7.pdf

Who cares if we assemble or fabricate? The question is value added. GDP reflects the total value added by the economy. It doesn't matter if you add value by fabricating or assembling.

 

[Thump553]

Classic definition of demagogue-someone who doesn't let facts stand in the way of feverently held and loudly voiced opinions.

 

[ohnoes]

The idea is the Japanese investors will have to bring their foreign holdings back to Japan to finance reconstruction.

This. Investors are guessing that many Japanese firms will be liquidating their foreign holdings and bringing that money back home for reconstruction. To do that, they'd have to convert foreign currencies to the Yen, resulting in increased demand for the Yen and it being more valuable.

 

[Texashiker]

Who cares if we assemble or fabricate?

Who cares?

There is a big wage difference between assembly line workers, and workers who fabricate the parts from raw materials.

There is a skill difference between assembly line workers and fabricators. One group stands there and does repetitive movements. While the other group learns how to weld, run machines, run drill presses, CNC machines.

According to the article you linked to, our biggest exports are things we grow, or refine (oil, petroleum products) , not things we make from raw materials - cars, computer chips, memory chips, phones, ships, ipads, ipods, hard drives, light bulbs, laptops, clothes,,,,,,,.

 

[ohnoes]

And also, the level of ignorance in this thread is astounding.

 

[the DRIZZLE]

Who cares?

There is a big wage difference between assembly line workers, and workers who fabricate the parts from raw materials.

There is a skill difference between assembly line workers and fabricators. One group stands there and does repetitive movements. While the other group learns how to weld, run machines, run drill presses, CNC machines.

According to the article you linked to, our biggest exports are things we grow, or refine (oil, petroleum products) , not things we make from raw materials - cars, computer chips, memory chips, phones, ships, ipads, ipods, hard drives, light bulbs, laptops, clothes,,,,,,,.

I'm having a hard time understanding how you could look at the data and come to that conclusion.

 

[the DRIZZLE]

Who cares?

There is a big wage difference between assembly line workers, and workers who fabricate the parts from raw materials.

There is a skill difference between assembly line workers and fabricators. One group stands there and does repetitive movements. While the other group learns how to weld, run machines, run drill presses, CNC machines.

According to the article you linked to, our biggest exports are things we grow, or refine (oil, petroleum products) , not things we make from raw materials - cars, computer chips, memory chips, phones, ships, ipads, ipods, hard drives, light bulbs, laptops, clothes,,,,,,,.

The kind of jobs you want are going to disappear even without outsourcing. With automation there is really no such thing as skilled labor in manufacturing anymore. Skilled labor still exists in areas like construction.

 

[Texashiker]

I'm having a hard time understanding how you could look at the data and come to that conclusion.

I am having a difficult time understanding why you think the USA is a world leader in production in anything?

The 3 main things we produce - oil, coke, plastics (petrochemical products), food and garbage from excessive consumerism.

~~~~~

Oh crap, I just realized this thread was about Japan and not china.

Disregard.

~~~~~

In that case, the Yen is being supported by injecting more money into their system. There was an article about it on CNN or foxnews the other day.