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Japan Exports Down 35%........

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http://www.bloomberg.com/apps/news?pid=206...refer=worldwide

'Japan’s exports plunged by a record in December, signaling companies will be forced to shut factory lines and fire more workers, driving the economy deeper into recession.

Exports plummeted 35 percent from a year earlier, the sharpest decline since 1980, the earliest year for which there is comparable data, the Finance Ministry said today in Tokyo. The December drop eclipsed a record 26.7 percent decline set the previous month. Economists predicted a 30.3 percent contraction.

Shipments to the U.S., China and Europe fell by the most ever, as the global recession dried up demand for Japanese cars and electronics. Toyota Motor Corp., Sony Corp. and Honda Motor Co. are shedding thousands of workers and closing production lines as profits and sales dwindle. '

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'The world’s second-largest economy may have shrunk as much as 12 percent on an annualized basis last quarter, Barclays Capital predicts, which would be the sharpest contraction since 1974. Factory output dropped 8.5 percent in November, the most in more than a half century, and machinery orders, an indicator of future capital spending, fell by the most ever.

Toyota, which is forecasting its first operating loss in seven decades, may cut all 4,500 temporary workers because of sluggish demand, the Yomiuri newspaper said this week, without citing where it obtained the information'

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Yes, so far Japan has shed 85,000 temporary workers. Doubtless it will get worse before it gets better. On other hand, it has a stable financial system and companies with low debt levels and plenty of cash. Looking on the bright side, Britain is now 50% cheaper than a year and a half ago for Japanese tourists...

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We need a new economic system very soon. In the post war era to 1990 we got money into the hands of the people because masses of people were needed in the factories to produce the new manufactured products. Refrigerators, washing machines, televisions, electrical machinery, automobiles and so on. There was more demand for workers than there were people. So the workers formed unions and got pay increases in line with their productivity increases with technology.

The workers were buying their own output. Soon two cars was normal for a family, several bathrooms, several tvs and so forth. But at some point, I estimate sometime during the 1980's the market started automating to such a degree that it started needing less and less workers, even to produce more than before. The big time layoffs in manufacturing across the world, the 'rust belt' in the USA. Perfect example is steel towns of 30,000 where everyone used to work at the steel mill. Now they are nearly ghost towns, but little known is that the mill in town is still producing as much as it was in the past, just with 1/5-1/10th as many employees as before. Naturally this also broke the backs of the unions.

Since 1990 we had another plan to get money into the hands of the people. A massive credit expansion, massive expansion in corporate, consumer, mortgage debt, getting money to people and into the economy. But that broke down in 2007, it just couldn't go any further, and there was no chance of people paying back those debts.(especially as automation continued to gain steam).

Now we need a new way, and my proposal has been to send money directly to all citizens of the country. Instead of the bank of England sending 600 billion to the banking black hole, where the borrowers have less and less ability to pay back the money.. what if they'd sent that 600 billion directly to the people. 10,000pounds for every man, woman and child in the country(it wouldn't need to be that much). And what if the EU, USA, Canada, China, Japan, Korea and co all did a similiar stimulus, and realized they are going to have to do it every year from now on. On the order of a couple thousands pounds to every citizen regardless of income and rising with time.

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Brutal truth is that in the Great Depression, it was the exporting / creditor countries that were the worst off. The debtor nations devalued their currencies, dusted themselves off and were able to pick themselves up much earlier.

This suggests that Japan and China are going to get hammered. Civil unrest is likely in large parts of China in the medium term.

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Now we need a new way, and my proposal has been to send money directly to all citizens of the country. Instead of the bank of England sending 600 billion to the banking black hole, where the borrowers have less and less ability to pay back the money.. what if they'd sent that 600 billion directly to the people. 10,000pounds for every man, woman and child in the country(it wouldn't need to be that much). And what if the EU, USA, Canada, China, Japan, Korea and co all did a similiar stimulus, and realized they are going to have to do it every year from now on. On the order of a couple thousands pounds to every citizen regardless of income and rising with time.

Your idea is pretty much the same as giving everyone a 'social wage'?

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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