This page has been archived and commenting is disabled.
Goodbye Japan, Hello Korea
As the government and Bank of Japan constantly survey the marketplace for speculation while intervening en masse with ever-decreasing levels of effectiveness, we thought the following charts would highlight the impact of the relative strength of the JPY. Of course, in the past, at least the trade surplus (thanks to these legacy companies) used to provide incremental capital into the country but now even that is gone. As Credit Suisse notes, "the TWI of the JPY has appreciated by more than 40% post crisis – even more than the CHF! But it is the relative strength versus the KRW that is really hurting Japanese firms. The Won plummeted sharply post crisis and has recovered nowhere near pre-crisis levels. Some of this shift in relative competitiveness may be reflected in the market cap of Samsung versus that of major Japanese tech firms. Samsung is more than three times the size of Japan’s top technology firms."
Since the crisis, Samsung has overwhelmed the largest 5 Japanese Tech firms...
It was not always this way...
And in context - here is AAPL...
Why is this a concern? Because whereas in the past Japan's economy at least had a source of endogenous capital courtesy of its trade surplus to offset all the other drains of domestic capital, this is no longer the case as we showed recently.
This means that the government is now effectively the only source of capital to offset all other Current Account outflows. This also means that Japan will be forced to monetize more and more, issue more and more debt, even as its population gets older and older and is forced to withdraw ever more savings, shrink the financial system, and sell ever more securities, thus finally accelerating the collapse of the Japanese monetary neutron star's 30+ year implosion into what, inevitably, becomes a black hole.
»
- 15390 reads
- Printer-friendly version
- Send to friend
- advertisements -
@RushLimbaugh - There are too many Generals taking orders from their privates!
LOL...
YouTube - A New Take on an Old Story: Paula Broadwell - Embedded Biographer to the American Caesar Petraeus
Oppa Gangnam style...
~~~
http://www.youtube.com/watch?v=mYPvAMrMzwI
That was obligatory - LOL
Can we learn some new K-Pop references, please?
I will never understand asians...
You mean Orientals, right?
I thought I was the token resident racist/anti-semite on ZH... Actually ~ I'm just filling in until Trav returns...
What is possibly racist about the word "Oriental"? To idiotically use "Asian" as a substitute is to totally ignore the many Asian nationalities which are NOT Oriental, such as Russians, Arabs and Indians, not to mention just once again highlighting the gross geographical ignorance of most Americans.
I can only laugh whenever I hear some ignorant fool use the word "Asian" to mean "Oriental" --- which most Orientals I know laugh at as well.
Lighten up, Francis.
All animals aren't orangutans.
Therefore, never call an orangutan an animal.
QED
the /sarc should have been implied...
the /sarc should have been implied...
echo... echo... echo...
echo... echo.. echo...
Actually, Spastica, the moral here is to never call an orangutan an animal while implying that orangutans are the ONLY animal.
Why so serious?
I prefer to be called "North East Asian", which distinguish ourselves from "South Asians" = Indians and "South East Asians" = Indoneisan, Fillipinos (which Hong Kongers hire as maids and domestic servants).
Oxycontin is a hell of a drug...
When Americans look at the dismal and frightening development of the Japanese economy, they need to realize that they are staring at their own future.
We bankrupt our zombie institutions, except for Chrysler, Citibank, Goldman, BAC, JPM, MS,,,,
Forget I said anything
I visited Korea three times in the past two years and the signs of expansion and progress are everywhere. What's more important however is that the Koreans are long term planners. They know where they want to be five, ten, twenty, fifty years from now. Everyone is working their asses off over there - I have rarely seen harder working people in my life.
Plus Korea is fun! You haven't partied until you spend a few nights with some Korean hosts - enough said ;-) Seoul is off the hook and I also traveled to the country side. Some of their mountain ranges are very reminiscent of Yosemite, believe it or not - great rock formations. The cities are super clean - I didn't see any trash on the roads or in the cities.
Downside: Very hot summers and brutally cold winters. The wind in Seoul literally blew through me - not for the faint hearted.
Kimchee FTW, bitchez!
Countries like Korea and Japan are great because they're very homogeneous. People share common values, beliefs, code of ethics, honor, etc. Therefore, very low crimes and general sense of harmony. But we're told that multiculturalism is what's up. The decline of western civilization, bitchez!
Good thing the US military interviened in South Korea then eh ?
Or do we all just want to forget all the wars the US won ?
Not that cold of winters man.
I didn't care for Korea - I couldn't find reruns of M*A*S*H on any channel...
To whoever voted me down:
http://content.screencast.com/users/evilspeculator/folders/Jing/media/bd...
Korea has definitely got their shit together. Going back to the states after living there for a couple of years is like going back in time. In America people are generally less polite, the technology is behind (can't use phone or wireless in subways, theatres are low quality, internet is slower, etc etc) the cuisine is not as healthy and the country is generally dirtier.
Amen. You can also substitute Korea with HK and US with UK and have the same effect.
Been there 4 times in 5 years (visiting family, my wife is Korean). A have described it the same way, back to the 60's. TV is full of variety type shows. Once every show, a man dresses like a woman and they laugh their asses off. It is a dirty place, though. Lots of pollution comes over from coal plants in China and few environmental limitations. The longevity there is close to what it is here despite the healthier diet. Lots of smokers, stressful living in crowded conditions (Seoul area) and poor air quality. People love family and are very hard working.
They said that about Japan from 1965 to 1990. Japan hosted the Olympics in 1964 and 1968 (Summer, Winter).
Japan was building the finest Bullet train system in the world in the 1960s.
Japan was building World Class technology in the 70's and 80s.
Same thing as Korea, soon enough.
yeah, sure, koreans got their shit together. so much so that Korea has the highest suicide rate in the world, along with the lowest birth rate in the world. look from outside looks like they're working wonders; when you look at it from inside, korea is one of the most fucked up hell hole on this planet that every one of its sane inhabitants want to get the fuck out from.
Crony capitalism in cycles thanks to currency manipulation and free trade agreements
Whatever works :-)
Merkel encourages Germany to increase its exchange with Korea and wants EUrozone to open up the market to korean model; France wants the Koreans to export less and import more on a BILATERAL basis with each European nation.
Absurd logic, Korea is now producing for Europe in East Europe (Slovak, Czecho, Poland) and France has to adapt its competitivity. Korea is now the lead dragon in Eurozone.
Samsung is the shiznit.
Samsung will buy Japan in 2 or 3 three years, and make every Japanese citizen a debt slave to Samsung.
I guess payback is a bitch...
China and Korea will seek to make Japan their bitch.
Their aging, radioactive bitch.
Decent tech products for the most part. They really have done a great job all around. Will be interesting to see how this play out, especially in the mobile device arena.
The television picture can't be beat, neither can the computer monitors. If there is one deficiency they have it is the sound (the same problem they all have/had) but for that there are external speakers/amplifiers. There was a stretch there when I felt like a crAAPL junkie. I still don't have it out of my system entirely.
I've got a handful of Samsung items and haven't been disappointed yet. Especially at the price points. One of them is an older DLP TV that has worked flawlessly since I bought it. Just changed the light bulb for the first time this year. In a world where these items seem to become more and more disposable, this says alot. Either Samsung is building decent products or needs some serious improvement in planned obsolescence - lol.
At least the capacitors don't pop within the first year like the cheapies do. There is a ton of room to innovate but I don't feel like they are moving very fast in that arena. The dvd players are wireless and have aps for netflix et al but still not functional for internet surfing and haven't really changed in three years. The audio jacks on the "smart" tvs are not remotely controlled, they aren't wifi capable either, but they are energy efficient. A tiny phone is 10X more advanced than a 73" television which I find sad. If they ever get everything working interchangeably they will sell a lot more product imo.
For all of the price points and picture quality, I'll beg to differ and put panny plasmas at the top of the heap. Samsung makes great products and definitely a +1 on computer monitors, but I'll put a panny plasma against a sammie plasma any day of the week and give you 2:1 on price point.
Can't beat a plasma for watching sports etc.
I like Samsung, pretty much everything... Samsung stock is expensive to... Samsung Electronics Co Ltd (005930.KS) Quote| Reuters.com
Ref; 1 US dollar = 1089.8400 South Korean wonJapan is fucked.
It still scores high on the cute chickometer.
South Korea does too. A study indicated that S Korean women are the tightest in the world.
Client 9 should know.
Long Japan exporters and short the Yen
Yeah, but do they have tubgirl?
The world is fucked.
What's that in Japanese (or Korean for that matter)?
Anata-wa fukkimasu?
No, most Japanese are fucked. A few of them benefitted from 30+ yrs of corporate zombie life support. Shits don't happen for no reason, just remember.
This means that the government is now effectively the only source of capital to offset all other Current Account outflows.
And how long until the Japanese government starts eyeing its massive US Treasury holdings as a source of funds?
Likely the day after David Rockefeller passes.
The day after they realize Hank Paulsens Bazooka is for show.
HyperinFRAYSHUN.
Nikkei over the last 10 years has been a dog.
Kospi has been on a steady climb.
10 years?
More like 23 years.
Nikkei since 1989 bitchez
The Nikkei tracks well with the US efforts to bring "freedom" to the Middle East...
South Korea isn't built on one "gigantic fault line", and it's closer to S/E Asia than Japan. South Koreans aren't " homogeneous" butt darts either.
The South Koreans have a young "worker demographic", and are generally nice people to work with.
When the ( ¥ ) blows it's cork, Japan is going to be screwed, "every which way but loose"! Japan is the second largest holder of U.S. debt, behind China... Every Which Way But Loose (Eddie Rabbit) - YouTube
Hey guys, we are currently on the road to copying the koreans in our political and economic system so don't fret one bit! Oh wait, I think our "Dear Leader" has gotten it wrong and is copying the northern end of the peninsula. Oh shit!
In regards to apple, the bigger they are.... the...harder they?
Hit you on the head.
Are to miss with an arrow?
Is there any correlation between debt and poverty? Jus' askin.