Okay so the US doesn't like something about how Japan's economy was doing in the 90s, what was the beef? I know Japan was manufacturing a ton of stuff, but I thought the US wanted consumer products manufactured overseas.
So they're not happy with this, so they do a run on Japan's currency. What does this mean? Like how do they do it?
The run on the currency causes the value of the Yen to go up. This is bad for some reason, even though your currency is worth more? Like can't you get more for a Yen? But clearly it's bad because it destroyed their economy, I'd like to understand why or how.
Because right now the best I was able to explain it to someone was "America did some money magic bullshit and destroyed Japan's economy", but I would like to be able to answer some follow up questions.
Yes, since the exchange value of the money as it relates to another currency isn't the same as its exchange value as it relates to goods priced in the first money. It should ultimately clear at a price that equalizes things, but that's hindered by multiple currencies exacerbating the chronic inability for markets to perfectly account for all externalities, future pricing, etc. Economics is a really interesting field! I wish more people on the left didn't just dismiss it out of hand, because problems like this calculation problem are enormous hindrances to the accurate estimation of the real value and cost of things.
Okay ty, this has given me a lot to think about. I think I have a somewhat clearer picture now.