The Keynesians in Japan (they are the only ones in global politics, as we have left the path of evolution for now) have been waiting for inflation for a long time. The country has been living in a demographically induced deflationary environment for decades. Two years ago, it finally happened: inflation rose and has now reached over 4% in the area of goods prices. As a result, real wages are shrinking ever faster, most recently by 2.5% year-on-year. Japan is heading for a period of stagnation and people's purchasing power will continue to erode in an attempt to bring the excessive national debt, which has long since reached the 200% mark in terms of gross domestic product, under control. For those with assets, the only option is to flee into hard assets.
75 sats \ 16 replies \ @Satosora 9 May freebie
What hard assests can Japan buy, though?
Just real estate?
Realistically speaking, will they actually get into bitcoin?
It is such an old generation, and an old way of thinking.
reply
10 sats \ 15 replies \ @Hamstr 10 May
real estate?..with a declining population?? the property becomes a liability at that point.
reply
0 sats \ 14 replies \ @Satosora 10 May
pretty much.
Lots of real estate will become freed up.
It wont be worth so much anymore.
reply
42 sats \ 13 replies \ @Hamstr 10 May freebie
japan got no economy. Whoever came up with the idea that a young working class japanese citizen must support 7-10 elderly citizens must have failed in math. Japanese people also don't die, but have the longest lifespan by country than anywhere else in the world, so.. Numbers don't lie.
reply
10 sats \ 0 replies \ @TomK OP 10 May
The family will see a great comeback as form of social security
reply
0 sats \ 11 replies \ @Satosora 10 May
They will have to change their ways, but they are a resilient people.
Actually, they have the longest royal dynasty in the whole world.
reply
10 sats \ 10 replies \ @Hamstr 10 May
the trend is your friend until the end. Any new trends in japan lately? Other then inflation exploding?
reply
0 sats \ 9 replies \ @Satosora 10 May freebie
They still do the baggy socks trend? lol
42 sats \ 0 replies \ @john_doe 10 May
As the new saying says, this is because of Putin.
When I read this I almost feel ashamed to say that thanks to Bitcoin I never felt as wealthy as I am now, and the exchange rate has made my income increase significantly.
Following inflation yesterday I saw rice sold with sugar in it in the supermarket and the box looked like half empty (shrinkflation).
After 2011 there were gold coins sold for 100,000 JPY as a commemoration of the Earthquake in the Eastern part of the country. When I checked it's value yesterday it was now sold at 360,000 JPY...
reply
42 sats \ 0 replies \ @Coinsreporter 10 May
You're right about Japan's Keynesian inclinations. For now they seem to have left it behind and are running out of fuel for it. I believe that Japan will be the first to undergo a series of inflationary cyclones in the East Asia.
reply
42 sats \ 0 replies \ @thursday 10 May
Curious how citizens will adapt. Japan culture has been so disoriented by the superficial deflationary, it may not be able to sustain its culture with stark inflation.
reply
42 sats \ 0 replies \ @halalmoney 9 May
I wonder what will happen first:
Real estate will lose some of its hard asset appeal, or
Bitcoin will become more widely recognised as a hard asset.
reply
0 sats \ 0 replies \ @gmd 10 May
So sad, imagine losing 10% of your purchasing power, savings and income in 1 month. The BoJ intervention appears to have been extremely transient dipping yen/usd briefly to 151.8 but now we're back near 156.
Feel so bad for country full of such wonderful culture and people.
They really need to start imposing taxes and attraction fees on tourists who have run amuck now that the exchange rates have gotten so favorable.
reply