The dangers of a strong currency...

CLAPTON

HAMISH_MCTAVISH wrote: »

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?

true but most of the things we make are consumed at home

Joe_Bloggs

@Clapton

true but most of the things we make are consumed at home

I eat my sandwiches at work.
J_B.

mgdavid

HAMISH_MCTAVISH wrote: »

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?

that's not a point, it's economic reality.
What is your point?

Going4TheDream

Electronics have moved on and there are a lot of newer players in the game that are meeting customers needs in both terms of innovative products, pricing, quality and reliability.

Perhaps they need to focus on developing products that the consumer actually wants to buy at a competitive price they want to pay rather than resting on their laurels and relying on their brand name alone?

Clearly if their car market is doing well a stong currency is not the prime factor for their large losses.

The_White_Horse

when i was young, Sony used to be THE brand to get. Now, not so much, and that is a big part of their problem. Walkman v. Ipod? Phones v. iphone and Samsung Galaxy, video cameras being overtaken by phone cams. There is nothing they are a market leader as anymore. It is very sad really. I always used to think Sony was the best, but not these days.

Graham_Devon

HAMISH_MCTAVISH wrote: »

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?

Right ok...

So what's your point then?

Do you want Japan to carry out policies which reduce the value of the Yen? What about all the extra problems created in doing this?

Generali

Graham_Devon wrote: »

Right ok...

So what's your point then?

Do you want Japan to carry out policies which reduce the value of the Yen? What about all the extra problems created in doing this?

To be fair, it's hard to see what else the BoJ could do to reduce the value of the Yen:

- Greek-style fiscal policy? Check
- Miniscule interest rates? Check
- Demographic horror-show approaching/in progress? Check
- Trade deficit (NB caused by massive gas imports more than declining exports)? Check
- Massive intervention in FX markets? Check
- More than once? Oh yes, check.

chucky

The problem with that the UK will be like Japan urban myth is that a few people have said it could be the case and many have believed it because they've selectively handpicked the potential similarities and decided we must be the same because it suits their mindset.

They're completely different economies, cultures, demographics and even the geography has lots to make it very, very different.

pqrdef

Graham_Devon wrote: »

So what's your point then?

Do you want Japan to carry out policies which reduce the value of the Yen? What about all the extra problems created in doing this?

I think it's more about the direction of UK economic policy? It strengthens the pound, which is strong enough already, and weakens manufacturing, which needs help.

crash123

chucky wrote: »

The problem with that the UK will be like Japan urban myth is that a few people have said it could be the case and many have believed it because they've selectively handpicked the potential similarities and decided we must be the same because it suits their mindset.

They're completely different economies, cultures, demographics and even the geography has lots to make it very, very different.

As if we didn`t know that. We are on about economic policy such as ZIRP.