# Currency wars - us vs yen



## invision (Aug 14, 2012)

Has anyone taken a look at the 1 year chart comparing USD versus yen? USD is up $13+ but that has only been over last 3.5 months...scary that they can devalue their yen that easily.... All in the hopes we buy more imports from them....


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## Immolatus (Feb 20, 2011)

I dont have the cojones or the money to mess around with Forex, but I've been reading about it. Hey, everyone else is doing it, so why not? 
My understanding is that Japans effects are more pronounced and immediate because more of the debt monetization filters down to the people because the people are a larger percentage of the debt holders than here or in the EU, and that the stated objective is currency devaluation, which enhances the effects of the devaluation. Is this correct?


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## BillS (May 30, 2011)

invision said:


> Has anyone taken a look at the 1 year chart comparing USD versus yen? USD is up $13+ but that has only been over last 3.5 months...scary that they can devalue their yen that easily.... All in the hopes we buy more imports from them....


I don't believe that the Japanese government is destroying their currency to boost imports. I believe they're doing it to create a big enough catastrophe to usher in a one-world government. Debasing your currencies means your raw materials and oil cost more to import. You don't win that way.


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## k0xxx (Oct 27, 2011)

BillS said:


> I don't believe that the Japanese government is destroying their currency to boost imports. I believe they're doing it to create a big enough catastrophe to usher in a one-world government. Debasing your currencies means your raw materials and oil cost more to import. You don't win that way.


I believe that they are doing it to boost exports. As their currency is devalued against other countries, more countries buy their goods. It's a great way to boost exports and business, but it's at the expense of your citizens, as their savings and buying power lose value.


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## invision (Aug 14, 2012)

k0xxx said:


> I believe that they are doing it to boost exports. As their currency is devalued against other countries, more countries buy their goods. It's a great way to boost exports and business, but it's at the expense of your citizens, as their savings and buying power lose value.


But unlike America, they import less than they export... Except for food and steal... So if they can deflate the costs of exports, the wouldn't the cost of goods sold internally also deflate?

This is a fuzzy area in my economic area... So I am guessing here...


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## k0xxx (Oct 27, 2011)

invision said:


> But unlike America, they import less than they export... Except for food and steal... So if they can deflate the costs of exports, the wouldn't the cost of goods sold internally also deflate?
> 
> This is a fuzzy area in my economic area... So I am guessing here...


Not really. Other countries are buying their goods with stronger currencies, while their citizens are buying the same goods with the weaker Yen. It would take fewer Dollars or Euros to buy the goods, but it would take more Yen to purchase the same goods.


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## invision (Aug 14, 2012)

k0xxx said:


> Not really. Other countries are buying their goods with stronger currencies, while their citizens are buying the same goods with the weaker Yen. It would take fewer Dollars or Euros to buy the goods, but it would take more Yen to purchase the same goods.


Yeah, your right... Basically what your saying is Object A might cost 100 yen, 4 months ago, it might have taken $80 USD to buy, but now it only takes $67... But it still costs 100 yen for those in country... Yet, if they go to buy anything imported, instead of being 100 yen, it would now cost 113 yen or more... Got it...


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## cowboyhermit (Nov 10, 2012)

This has been Canada's strategy for most of the last few decades, keep the dollar low to keep exports flowing. It works to an extent but in the long run it certainly has detrimental effects, it encourages inefficiency for starters.
In reality exports have been doing much better in the last few years as they have let the dollar drift up to on par with the U.S dollar, it still scares a lot of exporters when it does though.:dunno:


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## zombieresponder (Aug 20, 2012)

Japan actually interests me a great deal, as I'd like to travel there in the future. Japan's economy, at least from what I have read, is in worse shape than ours and has been for several years longer than ours. The Japanese gov't is probably trying to pay down it's debt with devalued yen(actually "en" in Japanese) in much the same manners as every other government tries to pay down debt with devalued currency. The results will probably be the same as well. That said, it's better to travel there now than it was before their currency was devalued relative to the dollar.


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