In response to:

Japan Manufacturing Contracts at Sharpest Rate for 19 Months

Chris from Kalifornia Wrote: Dec 01, 2012 5:47 AM
I remember when they floated the value of the yen on the dollar the first time. It went from 305 yen to the dollar to 240 in a matter of about 6 hours. Gee I wonder which way it will go now? What good is interest on a currency that falls in value faster than the interest can build up? None.
johnm h Wrote: Dec 01, 2012 7:28 AM
And it kept going up against their wishes. Baker twisted their arm to get the Yen to rise from 240 to 95, the increased purchasing power of the yen was then the cause of their real estate bubble and a lot of really stupid investment in the US. Then the Clinton administration had them in its cross hairs to do some mild opening up, but settled for Keynesian stimulus (the source of their internal debt) and a photo op the implication of which was that the Japanese caved on trade agreements, but they didn't. The Japanese would still welcome a weaker yen. In the mean time Japan Inc is doing fine.,but they haven't figured out how to translate that into a strong domestic economy. They'll figure it out sooner than we will sort out our decline

In Japan things have gone from Grim to Grimmer. The Markit/JMMA Japan Manufacturing PMI™ shows Japanese manufacturing sector contracts at sharpest rate in 19 months.

Key points:

Output and new orders both continue to decline
Capital goods producers register sharpest falls in production and sales
Inventories and employment cut amid subdued economic outlook


Operating conditions in the Japanese manufacturing sector continued to worsen in November. The deterioration was driven by falls in output, new orders and employment as the...