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The dangers of a strong currency...
HAMISH_MCTAVISH
Posts: 28,592 Forumite
Ouch...
More ouch....
Hmmmm, why would that be then?
Ah.
So a strong currency isn't exactly a good thing if you want to have an economy that makes things....
And deflation at home is the nail in the coffin....
Sony racked up a record annual loss of 457 billion yen ($5.7 billion) in its fourth straight year of red ink.
The electronics and entertainment company reported Thursday a loss of 255 billion yen ($3.2 billion) for the January-March period - its fifth straight quarterly net loss to round out a fiscal year that was the worst in its 66-year corporate history.
More ouch....
PANASONIC, one of Japan's flagship companies, has posted a 772.2 billion yen ($9.63 billion) annual loss.
A torrid year for the firm, Japan's third-largest mobile handset manufacturer behind Sharp and Fujitsu, saw it downgraded by two credit ratings agencies and announce a plan to reduce head count by 17,000 people.
Hmmmm, why would that be then?
Japan's electronics sector has been badly hit by the appreciation of the yen, which makes exporters' products less competitive overseas,
Ah.
So a strong currency isn't exactly a good thing if you want to have an economy that makes things....
And deflation at home is the nail in the coffin....
while falling prices and slow demand at home have also eaten into profits.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
0
Comments
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What is your point, Hamish?0
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The UK is just like Japan don't you know.HAMISH_MCTAVISH wrote: »Ouch...
More ouch....
Hmmmm, why would that be then?
Ah.
So a strong currency isn't exactly a good thing if you want to have an economy that makes things....
And deflation at home is the nail in the coffin....0 -
I dont think the tsunami that wiped out billions in stock at the ports and warehouses did them many favours.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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what is the right value of a currency?0
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Sony you can expect, they have a utterly bizzare range of products that are not what people want to buy, even the phones are out of touch, they shot from market leader to making unwanted goodsHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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A cherry picking exercise. The likes of Sony and Panasonic are being trounced by Samsung, LG and Apple but it has very little, if anything, to do with pricing.
Japanese car companies are still doing well (the latest BBC news reports for the big three):
Toyota profits jump amid recovery from disasters
Nissan profits jump as global sales hit record high
Honda profit recovers from floods
No losses there. Now these car companies are still moving production abroad and part of the reason is the strong Yen but my response to that is, so what? The reason the Yen is strong is thanks to an uber-efficient, highly productive workforce. If it was unproductive and lazy the Yen would naturally fall in value from a lack of demand for the currency.
Also, it's not a bad idea to offshore lower-skilled activites, such as assembly, and keep the higher-skilled, such as design, in Japan. The Japanese can focus on more valuable jobs to improve their well-being while providing employment for many in Asia whose economies are making a rapid shift from agricultural to industrial production."The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
I have a friend who still works for a Japanese company.
The two things that have hammered his company this year .
The high value of the Yen ...And 3 months of lost production caused by those floods around Bangkok ..
Japan is like one of those clubs at the bottom of the premier league ..Every thing goes against you ..luck , refs decisions ..injuries ...
Bad days for Japan ...0 -
Graham_Devon wrote: »What is your point, Hamish?
That a strong currency is bad if you want to make things and sell them overseas.
And that deflation is bad if you want to make things and sell them at home.
Was it that hard to understand the first time?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Ouch...
More ouch....
Hmmmm, why would that be then?
Ah.
So a strong currency isn't exactly a good thing if you want to have an economy that makes things....
And deflation at home is the nail in the coffin....
Your posts do seem to be developing an air of desperation lately. Not sure why though.0
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