Yen went on a free fall to a 24 year low yesterday. It is the third largest fiat currency in the world. Japan is also the largest holder of US treasuries.
Yen went on a free fall to a 24 year low yesterday. It is the third largest fiat currency in the world. Japan is also the largest holder of US treasuries.
The cheap lending keeps businesses from going into recession mode and firing a bunch of people. If money is cheap, labor is also cheap and the incentive is to maintain/grow staff.
I mean, Japan is about even on Imports/Exports, so as long as the rest of the world keeps buying their manufactured products, they'll have equivalent cash-on-hand to import food and energy. As to rents, the Japanese population is contracting rather than expanding. So real demand for housing is falling while real demand for labor is rising. The real challenge Japan faces is a foreign investment in housing that drives unit prices up well above what lay residents can afford.
The consequence of this sky-high real estate cost has been... a collapse in new families and new children, resulting in a tightening labor market and soft floor on housing demand. I would worry less about rioters than squatters in this situation.