Japanese Angst as India Set to Become 4th Largest Economy

choi

This is the posting I Intended to make yesterday.

Julian Ryall, Japanese Angst as India Set to Become 4th Largest Economy. Deutsche Welle, May 10, 2024.
https://www.dw.com/en/japanese-a ... -economy/a-69044686

Note:
(a) The English surname Ryall (when it is not Irish, that is, which would have another origin) is name of places either "from any of several places called 'rye hill' (Old English rȳge + hyll) including Ryhill (Yorkshire) Ryehill (East Yorkshire) Ryal (Northumberland) Great and Little Ryle in Whittingham (Northumberland) Ryall in Bradworthy (Devon) Ryall in Whitchurch Canonicorum (Dorset) and Royal Farm in Peper Harow (Surrey) or from Ryall in Ripple (Worcestershire) named with Old English rȳge + halh 'nook corner of land.' " (boldface added)
(b)
(i) "The solution, the expert pointed out, is for the Bank of Japan to adopt a tighter monetary policy * * * "
(A) Erik Norland (CME Group), Tight or Loose, Where Does Monetary Policy Stand?  Reuters, undated (an "advertisement" from CME Group).
https://www.reuters.com/plus/tig ... netary-policy-stand
("AT A GLANCE:
• Tight monetary policy aims to slow down an overheated economy by increasing interest rates. Conversely, loose monetary policy aims to stimulate an economy by lowering interest rates")
(B) CME Group
https://en.wikipedia.org/wiki/CME_Group
owns  Chicago Mercantile Exchange, its namesake.
(ii) Japan can not afford to increase interest rate, as it may fall back to deflation. So Japan has no way out.
(iii) You see, minus interest rate attracts no investors, domestic (meaning Japanese) or foreign. The only foreigner who is interested in Japan, invested in its stocks and PROFITS is, as far as I know, Warren Buffet, who rides on resurgence of Tokyo Stock Market.

When in interest rate in in the negative territory, investors flee, by selling yen (which alone drags down yen's value (that even Bank of Japan can not prop up).