TOKYO—Japan's current account posted its largest deficit on record in November, as a weaker yen pushed up import costs but failed to give a strong boost to exporters.
The deficit in the current account stood at ¥592.8 billion ($5.75 billion) before seasonal adjustment, the Ministry of Finance said Tuesday. That is the biggest deficit on record since comparable data became available in 1985. The figure was much wider than the ¥380.0 billion deficit forecast by The Wall Street Journal and the Nikkei.
Looks like Abe beat estimates by 56%. Six more months and I think he could double that to a trillion yen!
Japan has been applying an assertive Monetary Easing Policy, which drives the YEN downwards successfully. The immediate result shows that their Export and Tourism industries have picked up swiftly. Japan is now enjoying healthy export growth and has much more tourists visiting Japan.
With the sound and robust stimulation by Japan’s Monetary Easing Policy (which in fact mainly injecting more printed notes into the market by their Central Bank), the Nikkei has soared from 10,398 to 16,291 just in 2013. Nikkei marks its best performance in forty years, and also the top performer among Asian markets in 2013. Analysts name this “Nikkei Ends Year on a High in Quiet Asia”. Can we see the power of an aggressive Monetary Easing Policy now?
Australia can consider this as a viable option to improve our economy outlook and, our export can be improved instantaneously.
A lower $A can help to improve our Export opportunities, save the Australian farmers and manufacturers and reduce our trade deficit. It can also help to improve our Tourism industry, which has been damaged due to high $A. When our economy is improved, our property will be improved at the same time.
Another though is to engage a linked currency with USD, (e.g. A$1:US$0.80), which can give overseas investors good confidence in our economy stability.
Japan has been applying an assertive Monetary Easing Policy, which drives the YEN downwards successfully. The immediate result shows that their Export and Tourism industries have picked up swiftly. Japan is now enjoying healthy export growth and has much more tourists visiting Japan.
With the sound and robust stimulation by Japan’s Monetary Easing Policy (which in fact mainly injecting more printed notes into the market by their Central Bank), the Nikkei has soared from 10,398 to 16,291 just in 2013. Nikkei marks its best performance in forty years, and also the top performer among Asian markets in 2013. Analysts name this “Nikkei Ends Year on a High in Quiet Asia”. Can we see the power of an aggressive Monetary Easing Policy now?
Australia can consider this as a viable option to improve our economy outlook and, our export can be improved instantaneously.
Yes, exports are soaring, but imports are soaring more! As I said, Abe beat estimates by 56%, soon the trade deficit will hit 10% of GDP and the Nikkei will go into the stratosphere.
Although, the Nikkei is not 2013's best performer. The Venezuelans practice Crackanomics, and their stock market soared 570% in 2013 alone! Compared to the performance of the Caracas stock market, Abenomics is a lightweight! You think you have already seen the power of aggressive Monetary Easing Policy now, wait until Japan catches up with Venezuela! When USDJPY rises to 580, the Nikkei could even go into 6 digit territory. Of course all the doomers and gloomers will focus on the negatives of pensioners freezing and starving to death when they can no longer afford to buy heating or food, and rolls of toilet paper selling for the same price as a motorcycle, but those fringe nutters will be rightfully ignored.
Indeed Australia could consider this policy as a viable option to improve our exports, and send our trade deficit into 10% of GDP territory.
Quote:
A lower $A can help to improve our Export opportunities, save the Australian farmers and manufacturers and reduce our trade deficit. It can also help to improve our Tourism industry, which has been damaged due to high $A. When our economy is improved, our property will be improved at the same time.
No .... I don't think you quite understand the effect of lowering the exchange rate when you already have a trade deficit. I'll give you a hint, it won't be reduced.
Quote:
Another though is to engage a linked currency with USD, (e.g. A$1:US$0.80), which can give overseas investors good confidence in our economy stability.
Yes, investors love it when governments fix exchange rates, it gives them supreme confidence in investing in an economy that limits their profits.
Yes, exports are soaring, but imports are soaring more! As I said, Abe beat estimates by 56%, soon the trade deficit will hit 10% of GDP and the Nikkei will go into the stratosphere.
Ahhh....no. The Nikkei has been getting pummeled and the yen has been strengthening, particularly against AUD and NZD.
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