Japan's economic growth slowed markedly in April-June and analysts predict further slowdown, adding to policymakers' difficulties as they grapple with deflation and a rise in the yen that threatens an export-reliant recovery.
Slowing growth in Japan's key export destinations such as the United States and China clouds the outlook, while policymakers step up efforts to talk down the yen after it surged to a 15-year high against the dollar this month of 84.72 per dollar.
Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa are likely to meet later this week to discuss the yen's strength and possible responses, although analysts say likely options would be limited.
"I think the Bank of Japan and the government need to take decisive action against currency moves. Solo currency intervention is possible if the yen approaches 80 to the dollar. If that is accompanied by monetary easing by the Bank of Japan, it may have a certain effect," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
http://www.cnbc.com/id/38717422
Let me save some time for Gas, et al. It's so obvious. The combined effect of the failed leadership and naive socialist business attitude of Obama, Pelosi and Reid finally takes its toll on the rest of the world. We're all doomed to increasing taxes, more regulation and the oppression of the rich.
Next.
Not doomed. There are outs. ;)
Surely this will give the Fed the kick in the pants it needs to start making moves to avert deflation.
Japan over over extended itself back in the 1980's and has never fully recovered. Perennial low interest rates, unemployment stuck too high, inflated real estate prices... they can't find a way out of the trap.
Sound familiar? We need to STOP SPENDING MONEY we don't have. Once Japan was no longer the "it" economy they stagnated. We bennefited from that throughout the 1990s, now the world is moving on.
Quote from: waterboy on August 16, 2010, 09:39:15 AM
Let me save some time for Gas, et al. It's so obvious. The combined effect of the failed leadership and naive socialist business attitude of Obama, Pelosi and Reid finally takes its toll on the rest of the world. We're all doomed to increasing taxes, more regulation and the oppression of the rich.
Next.
Wrong wrong wrong. It's Bush's fault. Now that's something I have never heard before.
I yield to a superior argument. :)