Japan’s Massive Money Experiment Is Over. Now What?
On March 19, Japan’s central bank ended its latest economic experiment. The BOJ scrapped the world’s last negative interest rate policy, with the first rate hike since 2007. The move ends the most aggressive monetary stimulus program in modern history, signaling confidence that the country is finally leaving behind years of deflation and economic stagnation. How will this massive shift disrupt everyday lives across the country and beyond?
Read More on Bloomberg: www.bloomberg.com/news/featur...
00:00 - Introduction
01:14 - The Japanese economic miracle
02:37 - Bubble burst
03:18 - Decades of deflation
04:23 - Era of QQE
05:40 - Inflation comeback
06:52 - BOJ ends negative rates
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thank you ASIAN BOSS!
Usa financial crisis is coming. Remember year 2000 and year 2008?
Not sure that the future generations paying down that $8 trillion in debt will share your perspective...
I say i'm from Argentina 🇦🇷
@business higher energy costs due to the Russian invasion! Not the Ukrainian war…
all i heard was everythings gonna be more expensive now. in an enthusiastic voice
Right? I'm sitting here wondering what's the upside? Like great, now since mortgages are going up housing speculation can start again? Oh sweet, pensioners who've been stable on their income for the last 30 years are going to have to tighten their belts and adjust their spending again? The employees outside of the trade unions who don't see a 6% raise are going to struggle to finding housing and food? Wow what a dream! At least those with numbers can see those numbers go up.
@@ryanfeldpausch858 Japan's debt is more than twice its GDP. The pensioners who have been living on that same income for 30 years did it at the expense of future generations. It's exactly what we were doing in Argentina in the 90s: we had a fixed value currency (1 peso = 1 USD) but to maintain that rate we kept borrowing and borrowing until no one wanted to lend us anymore. Japan just managed to do it for 30 years, and now they're paying the consequences (or rather, their kids).
@@drgenio2006 What kids?
@@ryanfeldpausch858 The upside is Japanese people now have greater purchasing power globally. People come to Japan to enjoy the extremely cheap food and services with their way stronger currencies. What can the Japanese do with their weak currency outside of Japan? They basically sacrificed the growth of the economy for younger people to sustain the lifestyles of older people.
@@sablesoul Perhaps not unrelated to what you said, the Japanese have less and less interest in going abroad anyway. So the yen being stronger is not such a boon compared to for example Europeans/Americans using their currency abroad.
Living in Japan these past 30 years is pretty pleasant though if you realised that chasing never ending growth isn't the purpose of life.
Japan has highest suicide rate, dont equate your expat life with the average population's life..
And living with 10 trillion USD of debt.
We are talking about the geopolitics here, not philosophy
@@tatsumasa6332 lol and you don't mention the debt of Japan. You are extremely biased.
@@HermanWillems That's what I was saying; we live with 10 tril USD of debt here in this country.
Japanese can finally experience rising price like the rest of the world. Who wouldn't want their living cost double every decade or two.
Exactly. Japan has done very well.
@@TheBoobanJapanese salaries have stagnated for the past 30 years and are now on par with Italy's when in 1990 they were higher than American ones.
@@Dendarang so like the Italians must be really enjoying their high wages. Someone should tell them they are rich.
It's mostly an economic game to play with the numbers to infer the image of a middle class more then actually supporting a middle class. So I can guess that with the recent events causing the middle class to see beyond the image presented the government of japan is now keen to shift the model the image is based on to then re-present it back to the public to regain the image of the status quo.
@@flackstar007 and how is the middle class doing in the west? Just amazing we all so critical of Japans stagnation policies when the west has undergone economic decline for the last 30 years. Japan is no fool. They are long term and know what they are doing.
Hats off to Kurumi for compressing 32 years of BOJ activities into a 8 minute video....my econ professor lost me at the Asian crisis....
And all the people shown at 8:36 who actually made the video!
@@kurtkobain7445 We cannot forget them.
my econ teacher lost me at supply and demand... that was at the very start of the year
@@takbirgurung6146who?
“Since the end of WWII, Japan has been ground zero for …” I nearly spit out my tea.
Godzilla Minus One😊
Yes. Very poor choice of words.
"The economy after WW2 was explosive."
Like they didn't deserve it.
I DID almost lose a mouthful of coffee this is like the time a local politician for me, in a photo op standing next to a couple of disabled ladies in wheelchairs said "we all stand together for the rights of disabled people."
I like how this video skips why 'bubble' happened in first place, when USA were threatening Japan with sanctions and forced it to change monetary policy.
It’s insane they never mentioned the Plaza Accord of 1985! It was a key factor in the bubble era
I wonder where 'Bloomberg' is located and why they would have an active interest in not mentioning the economic war the US waged against its biggest rival of the 80s.
I knew there just had to be propaganda somewhere in the video, so thanks for confirming it
@@dishboy14 You say it was a key factor in Japan's bubble (and subsequent stagnation), but then why didn't the same thing happen in France, Germany, or the UK? The Plaza Accord was between the US, UK, Germany, France, and Japan with the aim of depreciating the US Dollar relative to all of their respective currencies. Why didn't Germany stagnate, but Japan did?
I got the vibe that they were just trying to get to today rather than explain why things were the way they were
Lived in Japan for a long time, and their economy proved that once you get to a certain level, you don't have to be constantly straining for endless growth.
It means being rich. Until that happens you continue to grow. Not the same thing as stagnation where everyone feels “comfortable” but in reality they’re accumulating a massive debt. Like current Japan.
Though those that can, move very far south for higher wages and quality of life
Easy to say it on borrowed money.
@@Blackwingsss to who though? yes, it's their central bank but they just created the money out of thin air so it is literally no different than me printing monopoly money, tell you it has purchasing power, and then handing it over to you in exchange for interesting using the money I just created as payment--yet there is literally not enough money in existence to payoff both the principal and interest owed (unless you have negative interest rates). What I'm trying to say is this debt (as well as the US debt) is not just fictitious, but one of the greatest fraud schemes of all time.
Until you start to stagnate and your future generations have to pay your debts
All in this video just shows that Japanese lived the best lives and now they would feel the same disappointment as we all.
We're not disappointed at all.
@@RikerLovesWorf who asked?
@@tf-ok You by making a very strange statement about a people you dont know lol
@@itsmederek1 It seems that you also made the same mistake by making a statement about people you don’t know.
@@wellytms4713 It seemed like you have done the same
Living in Brazil, I can't understand at all how no inflation could be bad. Imagine paying the same for rent and groceries for 10 years, even if your salary din't increase at all
look up a video called 'inflation explained in 6 minutes'
Sou BR vivendo no Japão e é simplesmente assombroso o poder de compra aqui. Sou peão de fábrica e sim, trabalho muitas horas, mas consigo comprar um iPhone 15 Pro Max de 512GB em menos de 2 meses se eu quisesse. Isso ainda depois de pagar todas as contas, impostos, e valores escondidos que a empreiteira pega de nós. ¥10000 que é +- 1 dia de trabalho compra tanta coisa no mercado que algumas coisas até acabam vencendo pq não consigo consumir tudo sozinho. Pra se ter uma ideia, aqui da pra se comprar um kei usado (carro barato e pequeno, porém econômico e prático) por um preço menor do que o iPhone mencionado acima.
@@fluttzkrieg4392 provavelmente por que os carros Kei sao construido no Japao enquanto os iPhones sao importados, voce paga mais por que esse e o mesmo custo do pais de origem do produto.
For the world having no inflation, money will not flow in the economic system. There’s no pulling for the money to the pool.
@@yhsun4796 As the productivy increases, so does the value of the currency, if you get 0% inf that means that you're redistributing some of the value across a range of population or you're using it for another purposes, there's no sense in beliving that 0% inf is bad.
Think an economy so strong that even printing money results in deflation.
If their economy is so strong why do they have 260% of their GDP in debt?
@@drgenio2006 You can have both debt and strong economy, they are not mutually exclusive.
@@nakoamechi yeah paying interest on that debt effect your economy
sad world we live in@@nakoamechi
@@noahsanchez5329 just print more lol
Are the first few seconds supposed to be bad? Because it sounds incredible compared to what we have right now (rising prices & stagnant salaries)
Yes it is bad cuz your debt to GDP ratio increases
Maybe we shouldn’t be putting ourselves in debt then?
Last I've heard, wages are going up in the US.
@@fly463 Maybe don't take debt .. ?
@@BlackDragon-tf6rv that's the point. It's exactly what Argentina did in the 90s. we kept our currency strong by just taking loans and backing it with dollars. at one point it all crashed because we couldn't pay. Japan is just able to keep taking more debt.
unfortunately this video completely skips the context to the leadup of the bubble, which was political pressure from the US and the plaza accord.
The crisis and aftermath of covid is a huge factor tho
@@wile123456The covid crisis is a storm in a glass of water compared to the Plaza Accord.
if you have to add the plaza accord then you have to add in the corrupt stock market deals and corruption at all levels of govt that caused the bubble to begin with
As expected, the western media are all part of the banking dynasty. Why would they make them look bad? 30 years had passed and only the Japanese can tell what's the social economy impact they faced. The young people around the world would probably didn't know about the event unless they do a research on Japan lost decades
@@DBGE001?
Stagnation is better than the price inflation with stagnant wages. Japan had things right, in the current world, where prices are doubling but wages are not changing. Infinite growth is impossible without infinite resources, Japan was being pragmatic, now they have lost their way.
260% debt to GDP ratio dude. They're living on borrowed money.
@@drgenio2006 What about the US? How is it any better?
@@TalEdds whataboutisms make you lose the argument immediately
@@TalEdds124.3%. Yes it is better
Lol, what?!
he says 'no inflation makes people attach a product to a certain price'. Well I live in a country with inflation and I do that. You can hear it around 'it used to cost only this much'. Everyone does that. I feel like it's human to attach stable values to things that don't change. That makes inflation so weird, because it's one of those human constructs that runs counter to human nature.
It is, they are hyping up greater costs which hurts consumers in the long run, and making it seem like their economy is now on track to somewhere better. More like its heading downwards again.
I would care too much about it if my salary kept up with the inflation...
Imagine if Bloomberg was honest and said it outright: inflation is theft.
@@TalEdds the old man in the video summed it perfectly: they will be better for now, but they may be a lot worse in 10 years
Yes its dumb, all it is is hiding that they are stealing from us, like how Rome shaved off gold on the coins, no difference
I was just in Japan for a month and couldn't believe how cheap it was. A water at Disneyland 200 yen which is $1.30. Super reasonable. Lodging and food was also super affordable
Salaries in Japan are also very low. So there is that.
@@HermanWillems median income exceeds that of Germany and the UK, it's not even low for a developed country
@@kagakai7729 i thought minimum salary is 7.5$ per hour in japan and in germany is like 12 euros
@@ervinmemeti6148 minimum wage is generally considered to be a less effective measurement of income than income itself.
If you compare with USD def cheaper, but the salaries were low too. Now that we will see positive inflation, there will be rise in prices but for local companies and their employees, the wages would remain almost same.
I'm from Venezuela, I'm blown away... almost 3 decades living with inflation, 2 presidents and more than 5 changes on currency
BOJ still printing money (buying JGBs). That's why bond and FX markets ignored this rate hike. Central banks cannot fix real problems (demographics) and actually make some things worse (income inequality). Time to stop worshipping the printer and focus on making smart long-term decisions.
Japan is like the king of smart long term decisions.
@@TheBooban like heavily restricting immigration for more than half a century and counting?
@@TheBoobanthe way they burst realty bubble caused stagnation for decades 😭
@@kageyamareijikun yes. I think most of us in the west admire Japan for this. Which is weird. Because practically everyone kept their borders except the west.
@@randomdibwbdkc stagnation better than decline as we got in the west.
Now Japan can experience the joy of rent doubling every few years. Woohoo!
not gonna happen
rent is not inflation. rent is cheap in japan because they maintain a steady supply of housing. inflation is a whole other subject.
@@magicjuand Rent IS calculated in inflation, at least in the USA it is. Its not even true rent, its owners equivalent rent which understates actual rent costs.
@@Justin-pt2dq when your population is declining and your housing supply is increasing, i'd beg to differ
@@electrictutorial1 Lower population means fewer tenants, real estates(which are the supporting actor of nation economy) will not be happy, hence higher rent. Never trust capitalism to be reasonable and compassionate.
A place where prices remain the same is what I call paradise!
But your salary also stays the same. I rather live in my country where my salary grows faster than inflation. :)
@@HermanWillems What country is that? Certainly not the US.
@@HermanWillems If you're not the boss, your salary is decided by someone else, and it will likely not grow faster than inflation. Higher labor cost increases inflation. To freeze inflation, all costs must freeze.
@@HermanWillemsThis doesn't exist
@@HermanWillems As long as my salary allows me to pay my expenses and have a little extra for emergencies, I dont care. I dont want to be super rich or millionaire I just want to live a life with no worries in exchange of a full time job. Not a life of misery while being on a full time job.
Inflation is a wealth transfer from the poor (cash holder) to the rich (asset holder). All small inflation does is hide bad companies by allowing them to lower your real wage without you noticing.
Could you please say more. I am intrigued with this definition and want to go a bit deep if you are open.
@@FromBharatLens Read/search: "Inflation and the Redistribution of Nominal Wealth"
In reality it's the opposite.
@@kcufhctib204 any sources/explanations?
It's a wealth transfer to the government and bankers from everyone else. Asset holders break even at best. The gov/bankers get to spend their newly created currency and current prices but once that money goes into circulation prices go up. Inflation is not prices going up, the rise in prices is a side effect from the money creation (which is what inflation is.)
how can they make a video about japan’s modern economic history and completely ignore possibly the single biggest factor in its decline? not a single mention of the plaza accords is actually crazy
don't expect much from media owned by rich people
they're still at zero and said they will step into the bond market if things get too out of hand so yield curve control is still going to be used. This was a non event. nothing has really changed
They raised rates for the first time 2007. That wasn't even 2008.
They're not at 0 they're 0.1
'non-event" buddy they are at 300% debt to GDP. The yen is a dead man walking, along with most other fiat currencies around the world.
you trippin bro? or are you crying that the negative carry is no longer attractive?
@@Shrouded_reaperYes, cyrpto is known for being super stable!
3:33 Wait, what's the "problem" with that? I see that as an absolute positive. Clearly it is not that you're buying the exact same product. So that means they evolve with time while you get to purchase them for the same price with the same salary. This literally should be the goal if anything.
Exactly!
It's about wealth and power for the government and elites. They play the long game of taking 2% of your wealth every year through inflation. They don't care about what is best for you. It's what is best for them.
The very purpose of institutions like Bloomberg is to relabel a wrong to justify the crimes of financial institutions; all in the face of your intuition to makes you realize it's obviously wrong. Of course that should be the goal, and anything but that is an arbitrary theft. Yes theft. When inflation goes up, corporations get to raise prices and erase their debts. That decreases the value of currency, and makes your wage less effective. The corporations get to steal directly from your pocket via the fiat currency (any currency with a built in inflationary aspect) without ever having to actually take money from you. It's genius but should make any decent person sick once they understand the concept. It's government sponsored theft occurring in nearly every nation in the world for the exact purpose of control and benefitting corporations. It is the most prevalent corruption problem of the 21st century. It's anti-human in the very concept. The fact that Bloomberg and others peddle this disgusting propaganda should show you exactly what they think of their victims and who their aligned with.
It's not possible in a capitalist world. Realistically the yen should have been increasing in value in relation to usd etc because everything in Japan is the same price meanwhile you need 20 dollars for a plate of food when it used to be 10. But it's not gone that way. Corporations want to be greedy they want a bigger share and to sell everything for disgustingly high prices while barely raising wages. 50k used to bring true stability a home and a family and its now a low class wage in most major cities. Inflation is incredibly convenient for corporations to cut true wages. Look at Canada where a basic family home is a million dollars and your quite lucky to find a job paying over 100k 😅 We're all ending up poorer while rich people afford insane things they never could have I'm the 1960s it is not normal to own massive private ships and jet liners with enough money to solve entire world problems
Well see, rich people weren't getting MORE money. They want what YOU own too. Everything wasn't enough for them, they wanted more.
This just feels like pushing Japan to accept this western concept when they are doing perfectly fine in their own way. Just because you're telling them they are missing what's in America, they have to do something like this even though I dont get whats wrong with the prices all being relatively constant as too the salaries
The video is explaining what the Bank of Japan is doing, why, and interviewing Japanese people about what they think. How is this pushing Japan to accept a "western concept"? No one is forcing the Bank of Japan to pursue these monetary policies, they are doing so of their own accord. The video explains how the Bank of Japan invented various policies that haven't been tried by other nations as well.
That "Your trips to japan could get more expensive" felt too personal haha. There was no need to attack the tourists! :D
The Plaza accords is what happened....America put a stop to Japan's rise
Bingo!
Oh yeah it's definitely some papers and not as severe demographic crisis and a cancerous work culture that prevents its population from starting families.
It exelerated the consumer market in japan leading to massive profits for everyone
Japan's stagnation is a result of other internal factors as well as china's rise as a cheaper alternative
Someone finally said it. MSM would never say it.
Cant halt deflation if your population don't increase. Less workers to produce less products for less consumers.
Unless heavy automation is in place to make Japanese more efficient, thus increasing their median income.
Less workers means more demand and better wages. Stop believing this stuff the media is peddling. Not changing for 30 years is much better than the economic destruction the rest of us have gone through during this time.
@@saltymonke3682 Long term this leads to a population of robots.
@@saltymonke3682automation only increases productivity but what about consumption? Without population increases there won't be any consumption increases. Also productivity and income don't go hand in hand especially since 1970's
Actually its: Less people cause less demand for products while production remains the same or doesn't fall enough.
Japan’s GDP per capita adjusted for purchasing power has been growing nonstop every single year even through the so called “lost decades.” As far as the purchasing power of the average Japanese, they have only gotten richer. Their economic system has worked well for them. Copying the rest of the West’s economic system will bring them nothing but boom and bust cycles and social division over wealth inequality.
不过相对其他还在增长经济的国家购买力是下降的😂
@@user-hc5cg3jc3i Don’t get tricked by the allure of raw economic growth. A major influence on raw economic growth is population growth. What you want to look at to see if a country is headed in the right direction is GDP Per Capita PPP. Japan is on a nice and steady upwards trajectory with no massive bust cycles since the early 90s. The average working person should not want inflation, it is a devourer of quality of life for the normal person and an accelerator of wealth for those who already have lots of assets.
GDP per capita, PPP has grown for all the developed countries, not just Japan. Japan's growth lags that of the OECD so this metric you're citing only further illustrates Japan's stagnation.
Yes and it's one of the best with quality 2 so it's crazy
@@roomie4rent Venezuela was once a developed nation and now it is clearly not so your statement is factually untrue.
This is an unfortunate, large-scale example of "don't fix what's not broken"
Inflation shouldn't be considered normal or healthy. Individuals should exchange based on intrinsic value, not just operational value, to protect against the negative effects of inflation and maintain long-term wealth.
agree inflation is theft. fiat money is slavery without the chains.
Low inflation is necessary, as it provides incentive for ppl to spend, also a government needs to print money sometimes to help stimulate the economy so inflation isnt bad if healthy
@@kolbymack2941 this is only true in a fiat monetary systems. it is also an elegant lie to mask the fact that the government pillages from its citizens. any inflation is theft - plan and simple.
Debt is what makes economies grow, and for that to work in a circular economy you need moderate inflation, if you could only spend what you earn then you would be outpaced in productivity by your neighbors.
Interesting. Just came back from Japan, and across the month during and before the trip, the Yen kept tanking. From the first time I looked up the current exchange rate to the end of our trip, it fell 15% in relative value to my currency. Guess I'll keep an eye on the exchange rate for a bit, to see how it develops.
and yet, people still had homes and food on the table. In the US, we have homeless increase and people use buy now pay later to buy food!
you have a reverse robinhood system
I think you're forgetting that there was a huge spike in worker layoffs after the property crash in 1990, which left many older Japanese men homeless for the first time. These people had worked all their lives, but were now living in tents beneath concrete elevated highways. I saw it many times on the news. This had never happened before in post war Japan. So it is not correct to think of Japan as being immune from the ills of other highly developed countries.
@@richardconway6425how many were there? 10?
and they also hunting Black ppl in the US we need a way to get out of here maybe we can move to Japan and boost their economy
Ohhh the poor USA with all their millionaires and billionaires. Someone please help 😂
As someone who has lived here for 11 years... I am worried now.
what is better than stable prices and stable salaries? There is no need for inflation. IN fact for thousands of years prices were stable when using gold as currency
It's the worst scenario for banks = rulers of the world. This is the situation where they cannot take away your house, your company, your land... when the economy is stable, when loan interests are low, when you know that you are in position to pay monthly rate, when there is no murky waters, then there is no room for speculation
@@sony.aBoohoo, poor banks 😢
What you need to do is ~ increase consumption ➡️ increase demand ➡️ increase inflation ➡️ increase salaries ➡️ increased production ➡️ then increase consumption again...
The video said that wages were rising again.
@@henrygonzales9666 based and landpilled
Have a look at the documentary: Princes of the Yen. Also see what the term: "window guidance" means.
Yes. That is an excellent video that should alert investors to Japan the problems they are marrying themselves to.
Great documentary, thanks for that America.
I'm no economist, but I do remember first going to Japan in 2003 and then again in 2008, and the price was comparative or more expensive than my home currency of Australian dollars with a converstion rate of about $1 to 75 yen. Now, the AUD beats or is equal to the yen, and the prices in Japan havent inflated, making everything feel about 50% cheaper.
Loving all the vintage footage!
sir we have inflation because of... BOJ: a win is a win
it's more like the government was going to step in if the boj didn't do anything, so the boj took the hint and did it first.
Here in Japan, we can literally get a loan from bank @ -10% interest rate, Means we get money from bank against loan
@@SnackFix_CornDog_BurnsRoad here in japan, where i actually live, no you in fact cannot.
@@electrictutorial1 are you Japanese? Hello my dear courty fellow. Mee how, chemong, shom shom, chengruba ,
@@SnackFix_CornDog_BurnsRoad cool racism bro
Not a word on plaza accord! Nice 🙂👍🏼
Cuz that was not the real problem. This was going to happen anyway as you can see it happening in China in real time. 🌟 Deflation 🌟 Caused by weak internal demand
Germany signed the Plaza Accord. Why is their economy thriving? China didn't sign the Plaza Accord, why is their economy crashing? And you, not a word of japan's debt to GDP ratio, Nice!
@@drgenio2006 I am not the one broadcating the analysis! Just highlighting how such a significant non-regular event didn't even get a mention! I am not commenting on video about Japanese cuisine or art of mending broken pottery, where it would be of no consequence and relevance. You may have read that way but I didn't suggest that was the only reason. There's never 'the reason' for events of this scale and timeline.
@@drgenio2006 Germany had the EU hinterland to export their products and invest into. Japan had.. lol. Why do you think China has - over the past decade - helped ASEAN grow rapidly? Win-win.
@@drgenio2006collective west is waging economic war on China openly
Ultimately Japan relies on exporting value-added products and importing rawer goods. As a country that needs to import food and fuel, this cannot change for decades. The people of Japan don’t have unlimited talent to keep adding more value and other countries were going to at least partially catch up in the value-added sector. So the stagnation was bound to occur. Japan is now experiencing a loss of overseas competition but not a loss in demand for its goods.
rawer than raw?
@@catholiccowboy rawer than processed
in other words, is Japan doomed to impoverishment and even extinction, and at best to be occupied by China?
WHat they can do is start making money from music sales and concerts if they let Black Ameriacns in the country to live with housing provided. Look how much money we make tjhe record labels in our country USA. It would help us too cuz we are being hunted by the police they are trying to terminate our population so we can move over there
@@catholiccowboy raw...dogging?
Don't chase inflation! Inflation should be around 0 or negative, for it destroys innovation and devastates savings. In 50 years, from '70 to '20, people in the US have become a lot poorer, for their salary and savings couldn't kept up with inflation. In the very short term, inflation can boost companies, but in the long term it destroys the middle class and as a consequence, the stock market, for the money needed for a quick jump, comes from them! In Japan, no economic growth also meant no middle class enpoorishment as it happened in the US in the last 50 years, as they didn't have to pay the bill to boost company in the short term! So, no, I'd rather have NO economic growth than became poorer because of it!
Dont let the top 5% hear this they will complain at you for not giving 200% at minimum wage work....
There are only 3 types of economies: - Inflationary - Japan and - Argentina
Zimbabwe & Venezuela too
@@Kni0002 Hungry too They had the worst hyperinflation in history
Which famous economist said that again? Really rings a bell
4 - Turkey Our economy is being ruled by a man with dementia
4 -developed -developing -Argentina -Japan
You could have chosen any example of Bowl food EXCEPT the Unagi Bowl, but you had to choose Unagi Bowl... Price of Unagi Bowl has gone up significantly in past 30 years, due to overfishing. Unagi Bowl used to be relatively budget food, costing somewhere around 500-700 yen (around $3). Now, the cheapest Unagi Bowl would start at 1500 yen ($10), most belonging to 2000-3000 yen ($10-20). Its one of few foods where the prices actually gone up. Its a bit of a pickle cuz the rest of the vid's great.
"we're already in debt so we might as well make things harder for everyone while forgetting to raise wages for people"
Forcing the companies to raise wage might only result them to move to other countries instead like what has happened to USA
@@user-gs6xl4wu6u the laws are just way too relaxed, if minimum wage doesn't keep pace with inflation then that would just be inflation of cost and deflation of wages which would have all the smart people move to where all the money... Corporations would move out anyway, you might as well separate the wheat from the chaff.
the rise of wages doesn't mean anything if the same rise happen to the prices , a lot of countries inflation even small percent hurt the average citizens
Have a look at the documentary: Princes of the Yen. Also see what the term: "window guidance" means.
The rest of us are hurting. Japan has done well.
I love when the minimum wage increases, and then they increase prices for all necessary services on the same day like electricity, water, phone bills, bus tickets. Suddenly the wage increase for 1 person is less than the added expenses for everything else.
Yeah this is another depressing video. A country with decades of stability for the average citizen will now suffer from the same ill any developed economy is suffering: wages not keeping up with inflation. But yay, japan is now more attractive for investors!
Inflation also helps the average citizen because it makes their debt cheaper. The big losers of inflation are (wealthy) creditors who get paid back money that is now worth less.
Sam Deymon strategies are simply amazing! I've tried so many different approaches to binary options over the years, but nothing has worked as well as Sam's methods. Thank you for sharing your knowledge and expertise with us - you're truly making a difference in the lives of so many.
Excellent Report. Your references to the economic boom of the 80's are right on point. - Regards, Poeartistry
Thank you. Very interesting.
2:55 now we know, where Sora AI took that famous footage from :-D
About being better off in 10 years through inflation: yes, youll be better off with inflation. As long as you own a business that increases prices at a faster rate than inflation, without increasing salaries as much. If you are a salaryman, prepare to get poorer, since wages never keep up with inflation. Businesses need to show that number goes up, after all! And number only goes up through increasing income and/or decreasing expenses (the easiest expense to keep stable is salary - you just say "no raise for you!").
Aren't labor unions becoming more prominent, though? Surely they would help with salary increases in tune w prices?
@cameron never has just adds more pockets to pay and idiots to run jobs off schyuder9034
I don’t understand why BOJ evaluates the economy as Deflation or less than 2% inflation. Food became expensive 10-20% in supermarket’s already but our salaries didn’t. Come on. As Japanese Yen rate plummeted people living in Japan simply become poorer. What’s wrong with BOJ and its statistics?
Most of the companies in Japan decide salary raise in April, so there is a lag between the inflation and salary raise. The salary increase rate is record high next fiscal year. Also it’s not just the perspective of consumers that BOJ has as weak yen entices investment from abroad. I believe Yen has been too strong after plaza accord.
I'm stunned with amount of happiness on the faces and in the voices of reporters while they are telling (I'm paraphrasing) "Japan is finally facing the inflation" How malicious one have to be, to act like that?
Because inflation is a holy sacrament in their international finance religion.
typical western stigma... I am surprised why you are surprised!!
means the financial sector can start skimming more value off the economy
A small amount of inflation is healthy. The problem is Japanese companies don't want to increase workers' salary.
That doesn’t surprise me. They don’t want to increase salaries in my country either, despite chicken costing so much you can’t even realistically eat it for more than once a week.
Inflation is a wealth transfer from the poor (cash holder) to the rich (asset holder). All small inflation does is hide bad companies by allowing them to lower your real wage without you noticing.
So the average workers' salary can be said to be directly linked to national inflation...
A small amount of inflation is healthy.....so deflation would be bad then....gtfoh
@@markushaahr9194huh? Aren’t you Danish?
Amazing coverage !
When do economists realize that any kind of artificial and drastic move against the markets, will only yield more confusion into the state of the markets?
Bloomberg.... what a respectable news outlet. Do not believe a word they say.
Which news outlets are honest according to you?
daily wire is one of them, maybe i dont get to remember them from the top of my head right now but i will say this, i look at the story, i analyse the info, i think what is this about, who benefits even in the slightest on the narrative or what narrative is it trying to suppress and then i decide who is and what is what. Most people and me included for years until past the age of 20, thought that all news are true and that the news cannot lie. Now i developed a critical thinking attern of dealing with the news. i think that you get far more thruthful information from social media posts than on actual news channels, because the info is raw and unaltered.@@CvnDqnrU
@@CvnDqnrU the ones that confirm his biases
Most developed economies target 2% inflation rate. Developing economies target a 5% inflation.
That's because they want to win competitive with monetary tricks Not honest work
Japan isn’t a developing economy, it’s literally the third largest in the world
@@elarmino6590 its because inflation is a sign that people are contributing to the economy. deflation means people arent buying things which means their lives are getting worse and the government is not making tax money. big inflation is uncontrollable, small inflation is easy to manage. developed economies dont want chaos, but developing economies dont have tight control anyways, high inflation is unlikely given how informal everything is and theyd rather have the cash to buy international bonds and currencies.
@@elarmino6590wow bro you definitely understand how economics work
@@elbozo5723 5th after end of 2023. Maybe this is one of the many reasons why BOJ is end 0.1% etc.
Please don't change the current Japan.
The only drawback is a lot of the imported stuff coming from outside Japan becomes very expensive. Everything else produced in Japan like food and local products will be inexpensive. For example, a Hollywood film on Blu-ray will be a $50 for a disc in Japan compared to $10 in US. American beef is expensive, etc.
Inevitable. Japan would be like Spain or Greece, only happier for tourists.
please stop watching hentai
Very interesting!
This is very easy to understand and very informative for an 8 minute video. It's shocking. ❤
From the intro sounds like the economy for people instead of economy for the rich investors. What't not to like about it?
Japanese government not only can't pay off their foreign debt, but are becoming even more in debt because they're not getting more money from people to compensate for other countries' inflations. Governments get their money from civilians and companies alike; unfortunate that they're increasing inflation for everyone and not just increasing taxes on the growing car business companies.
The Japanese economy and stock mart played to the tune of the USA. It went on to ridiculous heights . China was faced with the same problem 10 years ago. Luckily China pricked the bubble . They pricked the internet bubble again recently. Now Chinese property prices and stock prices are reasonable. Always look out for your own country. Forget about pleasing the USA.
Wait isn’t there a housing debt crisis in China?
China is going to have this same issue now what Japan is having.
@@HermanWillems You are just biased with no real knowledge of economics. Japans per capita income is 3 times of China. Chinese manufacturing are cheap and attractive. Look at its EV.
If your salary is stagnant but prices fall, your real purchasing power has increased. It's called constructive deflation. Heck, even if your salary falls, but prices fall faster, you are still ahead. As opposed to having your savings taxed 2%+ a year by inflation.
I think the only place where bubble won't pop is in Nepal. The land prices in Nepal will never go down.
Fact check : Half True ! Japan had been the fastest growing economy of the G7 and the next year gonna get even more better as decline of EU push people to invest in japan instead and more ...
That is a crazy stat that I’ve seen nowhere. Japan is near the bottom of every metric in the G7
Do you have sources for this??
@@xXxUrbanNinjaxXx he has a crypto as pfp what do you think?
Japan lives in a parallel reality. It prints quadrillions of yen and has negative inflation. When Argentina prints money, it has 100% inflation.
Maybe Argentina should try manufacturing literally anything lol. Their biggest exports are meat, meat, and more meat. Not exactly lucrative in a technologically-centered world.
@@kgpz100 exactly. The world economies have evolved past raw goods, and a lot of the underdeveloped world is still slow to pick up on that. Also there won't be much faith in the economy when you only produce t-bones.
@@kgpz100 That has zero correlation to inflation.
@@jkbbumblebee China should be on that list, but politically are not aligned to G7. India, Australia, Russia, South Korea and Indonesia aren't anything to scoff at either, being G20 countries.
@@jkbbumblebee I was looking at this in terms of economic strength, but fair point
Video muito interessante. Obrigada. Aprendi muito. Bom conhecer o país antes d viajar. Tenho muita vontade de conhecer o Japão.❤
The only thing I'm learning from the situation in Japan is an unsustainable situation can last for decades if not a century or more
When you print money, intervene in financial markets, and strongly control interest rates for decades, your experiment doesn't end the day you stop doing portions of that.
i was told the governments couldn't do that. I was told the market was in control of a countrys interest rate. I was told thats why Japan and the US would soon default of face hyperinflation
I wonder if they have a meaningful long term policy to decrease their debt burden. I know that JICA and international development loans are a part of that, but are those enough? Are the interest payments of the japanese government decreasing year on year?
@@oadka their strategy is just to buy out their national debt. I think they bought out half of it already
Economists will one day look back central banks and their utter reliance on interest rates. And compare it to doctors' bleeding patients. Or doctors who use the room thermostat to control the patients temperature.
thumbnail designer deserves a pay raise!❤️🔥
Mr Sam's strategies are explicitly unique and amazing. I love the way you choose the right strategy to test. And I love how you explain your strategies.
Saying that inflation was caused by a weak yen is ridiculous in ins redundancy. The definition of inflation is the decrease in value of the currency.
it's got many definitions, but it's actually an increase in the money supply, the rest are just symptoms, like the decrease in value.
No one is talking about the Godzilla size problem of an aging population,low birth rate and declining population which is just getting started as boomers start retiring, slow spending, and dying.
Incorrect, a lot of people are talking about it.
Inflation causes prices to rise faster than wages in every instance I know of. The only benefactor seems to be the government.
its working...its nearly perfect
I like the way Japan was doing things, by flat-lining inflation they prevented excessive inflation. Makes sense. Notice how as soon as they indexed their economy with the rest of the world sh!t started to get expensive, especially real estate.
But if they had a lot of foreign imported goods, then someone has to eat the prices if there was no inflation in Japan, but everyone else marked up their prices.
Even if we had to believe that "stable prices" prices are "bad" for economy, ask Rust Belt workers how the monetary madness US got at the same era panned for them and what they would prefer.
on a side note, the last shot is fire
so cool
Did prices really not change for 30 years? they did have actual deflation in the 90s, albeit not huge apparently
yup, every day prices here has been roughly the same for a very long time.
and yet, people still had homes and food on the table. In the US, we have homeless increase and people use buy now pay later to buy food!
isn't it better this way? at least the Price won't budge and neither is your Salaries, therefore everything is predictable. rather than keep encouraging taking out debt, and trying to grow at all cost, throwing money to the next bubble. yes, they probably won't be able to catch up to the US, but why would they? unnecessary growth leads to inequality and homelessness, especially like in the US where only the Monolithic companies could survive, other type of Companies will be either killed or absorbed, killing the diversity. and it allow everything, from houses to land to be owned by corporation
That’s rather shocking to me, because Japan still wasn’t as cheap as I expected on my trip. Prices must’ve been very expensive for tourists 30 years ago.
@@FishmansPrices in Ginza aren't representative for the whole country.
“It’s not about what business you should start, it’s about what skill set should you learn?” join Mr Sam Deymon.
Why are the title and the video description in Portuguese and the video in English? Por que o título e a descrição do vídeo são em Português e o vídeo é em Inglês?
0 economy education here. What’s so important about inflation? And when should it stop if ever?
This is going to be a disaster, deflation is not over in Japan. The inflation that exists is artificial from the pandemic and the US fed rate being too high, once the fed reduces the rates, it's going to be pretty bad in Japan.
why are they even facing deflation with their debt to gdp at 300% shouldnt they be facing hyperinflation?
@@grimaffiliations3671 Japan has the largest assets in the world. It is important to note that Japan’s debt and assets are well balanced.
Here's one for the textbooks
have to start thinking opposite of current economic theories, lower interest rates have an effect of lowering prices all things being equal,
I'm surprised they didn't talk about demographics at all, that's a major factor in the growth of any economy. How much the average individual consumes, works, pays in taxes or invests is heavily determined by where they are in life. It's also very difficult to grow an economy when you're in the advanced stages of demographic decline.
100% agree, Japan needs to change it's cultural aversion to immigration, or it will continue to slowly deflate away.
In addition to demographics, politicians in Japan are terribly worst in developed countries which affect badly Japanese economy. If things continue this way, Japan will really cease to exist as Elon said.
@@tjunglec the problem is that you cannot just open the flood gates and expect the same quality people.
The old, tired mantra of immigration will solve all problems.
@@tjunglec Going very well for us here in the US, we now have people openly mocking us and draining money from the government to send back home.
I wonder if companies learned that their greed affecting their country by lowering/not raising wages and distribute the huge revenue only to few people. If people can't afford daily life cost let alone babies, of course the economy would be stagnant. As a reminder, worker is the one of the component that make companies and countries still exists. This case might happen in other countries too. Hope japan will revive
No that's how capitalism works, the rich gets richer
That's not the reason. You think companies weren't greedy in the 80's?
we are on the way to the golden billion why the elites want more people if they can replace them with robots
Have a look at the documentary: Princes of the Yen. Also see what the term: "window guidance" means.
@@victoneterthat greed worked well back then, now isn't the case
Amazing
Basically it transfered wealth from the government and export led businesses to savers and employees
Taro is handsome
Why do they speak like deflation is bad? it is a sign of a well establishhing country, resulting in abundance....
Because it also means that people are holding on to their money and are afraid to spend. Basically the economy slows/stops growing. Things get cheaper not because they find better more efficient ways to make the product, but because they need to simply sell the product to stay afloat.
@@LeeroyFan101 When demand is met it tends to happen....Why run the economy hot just to bring up cost & waste resources when you can let the resources pile up for more cost efficient developement? Reckless spending pushes the market up unnecessarily. Their is no benefits for society when inflation happens..only to bailout greedy & reckless owners from their loans...dont bite more than you can chew...take your L...
@@LeeroyFan101 The economy does not stop growing during deflationary businesses...it squeezes out all the uneeeded businesses...natural economic dwarnism... "Things get cheaper not because they find better more efficient ways to make the product, but because they need to simply sell the product to stay afloat." sounds like a lack of demand...does not give you a reason to print trillions for a bailout...you just have an unwanted product...fail like you should...
How does japans preference for cash sales affect their economy. I appreciate it has commenced changes to cashless, but it’s still mainly cash.
7:27 what now? Well, here are some of the changes we can expect to see. First, mortgages will get more expensive for the first time in decades. And interest payments on the government’s more than $8 trillion of debt, which is about twice the size of the country’s economy, will increase. The same thing will happen to companies. It could also propel the yen higher. That means your trips to Japan could get more expensive. And Japanese exports would take a hit too.
You expect me to believe you just accidentally said the words "since the end of ww2, Japan has been ground zero for some experiments." You thought you were going to sneak that one past an american???
Experiments in economics. Not nuclear bombs. Well, that’s what I think you were referring to. Or?
LOL hey man that’s funny
@@TheBoobanjust curious what country you come from where you don’t have puns
i was confused too lol which ground 0
Tom clancy mentions Japan's role for the 9/11 demolition for financial interest. Ground zero is another word for the demolition and tom clancy even prediction of covid 19 were accurate too.
Central banks wanna convince us we want prices going up? I’d rather stable prices than getting poorer every year.
0:10 Aaaahhhh Unaagi !
well, if you have access to loans at low interest in Japan, you can leand in US or Europe at profit..
How you get such access?