The Yen Plunges, It's Time to Be Alert!
Recently, the yen exchange rate has been collapsing repeatedly, from 154 to 156, 158, and even breaking through 160 at one point, continuously setting a 34-year high record.
However, it's strange that in the face of the plummeting exchange rate, the Bank of Japan not only maintains the interest rate unchanged but also directly states that the current loose financial environment will continue.
The Governor of the Bank of Japan, Haruhiko Kuroda, only stated externally, "We will closely monitor the fluctuations in foreign exchange and their impact."
This lukewarm attitude is very similar to the state of slacking off that we, as workers, are in.
Clearly, the yen has plummeted to a critical point, so why does Japan turn a blind eye? Is it that the United States is putting Japan on the dining table, preparing to harvest at will, or is it a joint plot by the United States and Japan, targeting Chinese manufacturing?
Advertisement
Today, let's discuss these issues. It's not easy to write, so welcome to like, share, and bookmark.
The plunge of the yen is meaningful.
After the Bank of Japan's statement, Wall Street capital has become more and more unscrupulous, and the yen exchange rate has collapsed directly.A Wall Street hedge fund manager candidly stated:
"The stance of the Bank of Japan has led the foreign exchange market to believe that the probability of the Bank of Japan intervening in the currency market has significantly decreased, making it more brazen to profit from shorting the yen."
Regarding the plummeting yen, the enigmatic actions of the Bank of Japan are widely seen as the United States preparing to reap the benefits from Japan. As a loyal vassal of the U.S., Japan is powerless and seemingly uninterested in resisting.
To some extent, this consideration is not entirely wrong, given Japan's past behavior. The so-called "currency autonomy" is essentially a joke, to the point where some refer to the Bank of Japan as the "overseas branch" of the Federal Reserve.
For a country that acts according to the United States' whims, any outrageous operation is considered normal.
However, in the game of great powers, things are often not as simple as we might imagine. We must look at the situation comprehensively.
In fact, for a long time, the United States has been negative about the depreciation of the yen, repeatedly and explicitly stating "no yen depreciation."
For example, in 2013, when Abe was vigorously promoting "Abenomics," he spent the entire year printing money at home, which caused a sense of crisis in the United States.
The U.S. Department of the Treasury directly warned in its semi-annual report on global currency issues, stating that "Japan cannot devalue the yen to gain a competitive advantage in the global market."
So now, let's take another look. Does the recent sharp decline in the yen's exchange rate seem to have a deeper meaning?Imagine for a moment, is there a possibility of history repeating itself—Xiang Zhuang dancing with his sword, with his true intention aimed at Pei Gong?
The United States and Japan join hands to set up a scheme, targeting China's manufacturing industry?
The yen plummets, coinciding with the May Day holiday, and there is a piece of news that has recently gone viral:
Japan has once again become a popular travel destination, with various recommendations online, and with the yen exchange rate plummeting, shopping in Japan can enjoy extremely low discounts.
For example, a luxury bag that costs twenty to thirty thousand, purchasing it in Japan now can save three to four thousand compared to buying it in China.
According to data from our country's travel platforms, during this year's May Day holiday, Japan has become the number one destination for outbound tourism from our country.
Tourists flock to Japan to spend, and thus this question arises:
Currently, promoting domestic economic growth, stimulating domestic demand, and stimulating consumption are the top priorities, but just at this time, the yen exchange rate plummets, attracting a large wave of tourists to Japan.
While driving Japan's economy in the short term, will it have an impact on the total domestic holiday consumption to a certain extent?
Although this is just a possible speculation, it is not impossible.Additionally, we all know that the depreciation of a country's currency is beneficial to export trade.
The reason is quite simple: after the depreciation of the domestic currency, foreign currencies become more valuable, which is equivalent to indirectly increasing the discount, and thus saving more money when purchasing domestic goods.
Now is a crucial moment in the competition between Chinese and Japanese manufacturing industries. With the gradual rise of Chinese manufacturing, the Japanese manufacturing industry is facing a severe challenge.
For example, in areas such as automobiles, mobile phones, and household appliances, which were once dominated by "Made in Japan," Japanese companies are gradually stepping off the historical stage due to the competitive pressure from Chinese enterprises.
However, as the Japanese yen continues to depreciate, Japanese product exports will become increasingly advantageous, thereby impacting Chinese manufacturing.
So, by connecting the clues, we can discover that this round of the yen's exchange rate plummet could also be a joint plot by the United States and Japan, targeting Chinese manufacturing to further suppress China's product exports.
The rise and fall of Japan, the common people suffer.
In fact, whether it is the United States preparing to reap Japan or the United States and Japan jointly plotting to suppress Chinese manufacturing.
In this invisible war without smoke, the ones who suffer the most are the ordinary people of Japan.
What does the plummeting yen exchange rate mean?The answer is that Japanese people have become poorer.
The depreciation of the yen has directly led Japan from deflation to imported inflation, with soaring prices, shrinking wealth, and the lives of ordinary people becoming visibly more difficult.
Despite the "spring struggle" this year, where the average salary of large Japanese companies increased by 5%, it is still far from enough, as the wage increase cannot keep up with the pace of inflation.
Recently, a Japanese media outlet conducted a survey titled "What impact has the yen depreciation had on your life?" The results showed that as many as 87.5% of respondents believed that the yen depreciation had a negative impact on their lives.
Just last month, Japanese cabbage even sold for a "sky-high" price of 100 yuan, marking a new round of food price increases, with as many as 2806 types of food products experiencing price hikes.
Of course, even though the public has been arguing fiercely online, almost to the point of accusing Japanese politicians of being "traitors," this is not at all a concern for Japanese politicians.
Because from beginning to end, the sole purpose of Japanese politicians has been to please their American counterparts.
As long as the American counterparts are in a good mood and can ensure their own positions are secure, that is enough. The well-being of the common people is of no concern to these Japanese officials; whether they are praised or criticized, it's all the same to them.