Showing posts with label Macro- Economics Japan. Show all posts

Thursday, January 6, 2022

Dirt Cheap Japan

Something ridiculous is going on in the Yen exchange rate versus its major pairs. Although the nominal exchange rate barely changed over the last 27 Years, the real Yen/ Dollar and real trade weighted Yen has depreciated to levels not seen since before the Plaza Accord of 1985.

Given the systematic underreporting of deflation in Japan over a prolonged period, the “real- real” Yen likely has depreciated even more, to levels just before the “Nixon shock” of August 1971. Simply put: Japan is dirt cheap!

But how cheap is Japan on the ground? Basically, Japan’s nominal prices for goods and services appear being frozen since the beginning of the 1990’s.

Just for the Record - Sell Ryoyo Electro (JP:8068)

Sold today Ryoyo Electro for 2’683 Yen per share. A stock I mentioned on my blog roughly 8 years ago at 944 yen.

By than Ryoyo was a debt- free deep value stock with enormous assets in form of cash, receivables, inventory and liquid investments that traded below its liquidation value.

The percentage gain (without dividends) is a 184 %. Including dividends received (before Taxes), which were 420 Yen per share, the percentage gain comes in at 229%.

A more detailed analysis on the rational to buy into the stock and the reason for selling out is coming up soon!

Tuesday, November 8, 2016

Did Korekiyo Takahashi Save Japan?

The Showa Depression of 1929-1932 wreaked havoc on the Japanese economy and society. Its main consequences can be described as follows. The macroeconomic downturn was felt primarily in falling prices and not so much in output contraction.

The Japanese society as a whole was hit hard by the Showa depression, especially in rural areas. Rural impoverishment became severe around 1931. During the Showa depression the Japanese public became greatly frustrated with the deflationary policy of the second Wakatsuki Cabinet and, finally, the government was removed and was succeeded by the Inukai Cabinet in December 13, 1931. (Ohno)

Four and a Half Misconceptions about Investing in Japan

"Several myths about Japan persist. The reality is that Japan has taken its medicine. Companies have been paying a significant real interest rate on their debt - there has been no financial repression." (Peter Tasker)

Who Is The Bug Searching For a Windshield?

I have to admit to a very serious weakness of mine. Every now and then I scan and skim the Zerohedge page. Ok. Maybe a little more than every know and then. I just love the yellow press and especially the financial yellow press.

Korekiyo Takahashi - The Savior of Japan?

The Showa Depression of 1929-1932 wreaked havoc on the Japanese economy and society. Its main consequences can be described as follows. The macroeconomic downturn was felt primarily in falling prices and not so much in output contraction.

Princes of the Yen

Documentary by Michael Oswald. Based on Prof. Richard A. Werner's Book: Princes of the Yen: Japan's Central Bankers and the Transformation of the Economy

Princes of the Yen - Official Website

Saturday, August 24, 2013

MoF on the Internationalization of the Yen

Better utilization of Asian currencies for trade and investment activities in Asia is important. In case of the Japanese yen, efforts to increase the international use of the yen were started in the 1980s. As there are already no constraints caused by regulations and taxation on yen investment and financing, the yen is used today for around 40% of Japanese exports and around 25% of Japanese imports.

Corporate Japan's Cash Hord - Is it Rational?

Many japan observers (including myself) have been complaining about corporate japan's ("irrational") cash hoarding mentality. In some instances it goes so far that net-cash holdings on individual companies exceed their market capitalisation.

Why Nobody Should Care About a Weak Dollar

The Dollar Is Down, but Should Anyone Care?

By EDMUND L. ANDREWS (2004)

United States is spending nearly $600 billion more a year than it produces, almost 6 percent of its annual gross domestic product.

The Internationalization of the Yen (Part One)

Internationalization of the Yen ( Interim Report )
(MOF: 1998)

The internationalization of the yen was discussed during the 1980s in tandem with the subject of the liberalization of the Japanese financial system. Subsequently, in March 1985

Yield Curve Rising in Japan

Although the BOJ announced to buy longterm JGB's the yield curve is getting steeper in Japan.

What does that mean?

Well, it depends on how you see interest rates working its way into the real economy.

Reforming the Tax System in Japan

Japan's tax system is, alongside with the US American's, one of the least efficient in the world. Tax burden in Japan stands around 30% (similar to US). That has to be regarded as very low, especially when compared to european countries (Germany 40%, France 45% and scandinavian countries over 50%).

Will Japan's "real" trade balance just stand up please

I really have to shout out one thing today: I am seriously getting sick of ill-informed "financial media experts" and clueless vodoo economists, orchestrating their so loved japan bashing. I mean comon'. It's getting really boring and you guys not doing you any favour regarding your credibility and your perceived intellectual capabilities when it comes to basic economic concepts. I mean we are talking (basic) economics 101 here and not rocket science!

The myth of Japan's Deflation

This post is one of a series, trying to counterbalance a little the majority view of the financial media and vodoo economists about Japan's so called lost decades.

I'm not trying to give an indebth (macroeconomic) analysis about the state of Japan's economy, but rather scratching a little bit on the surface here.