Chapter 186
Which is more important, the sudden depreciation of the yen, the state funeral, or the former Unification Church problem? 16 trillion yen will blow away instead of 1.6 billion yen for the state funeral. As for the exchange rate, it wouldn't be strange if there weren't any countermeasures, even if the rate would be 200 yen per $1. I canceled US dollar currency time deposit that I had prepared in anticipation of the depreciation of the yen 10 years ago. If monetary easing is continued for a long period of time, it will have negative effects. In fact, Japan was forced into a situation where interest rates could not be raised. It's like a boiled frog. A little thought will tell you this. When interest rates rise and fall, borrowers feel nervous. Now is the time to borrow and return, and the person who borrowed will act with profit and loss in mind. However, if interest rates continue to fall and become zero or even negative, it is better to borrow late. And if it doesn't go up in the future, there's no need to return it. In addition, the psychology that can be borrowed at any time works. The current Bank of Japan does not have a high level of expertise in monetary policy. Why are they doing this nonsense? Need a change of mindset? How long will debt continue to extend the life of a zombie company that has lost international competition? Covid-19's emergency loan spread the wound even more. Originally, companies should invest in equipment when interest rates are low, improve their competitiveness, and prepare for interest rate rises, but boiled frog zombie companies that have become accustomed to the fact that interest rates do not rise are unable to return to being human beings. In addition, the lack of young workers is one of the reasons why companies cannot make capital investment. It can't be helped that there aren't many young people in rural areas like Tokushima, but when I go on business trips to Tokyo, the only people I see are old people. I think we need a system that makes it easier for young people from overseas to move to Japan. I think there are negative opinions about public security, language problems, etc., but if things continue as they are, Japan will just boil over. In the past, I criticized the evils of the temporary staffing industry, but since dispatching is a heinous system that employs Japanese workers at the minimum wage, it should be abolished as soon as possible. How about having young people overseas study Japanese and receive vocational training with that high exploit margin? Temporary employment agencies should create added value by training young people overseas and providing them with places to live. There are many young people from overseas who want to come to Japan, which is safe and has a well-developed infrastructure. In addition, Japan should strengthen its competitiveness in advanced science and technology, which Japan has lost. In this regard, I have been impressed recently that the technological capabilities of Japanese companies cannot be underestimated. Micro LED, which has already been announced, is one of them, but there are many other interesting research and development subjects brought in, such as photonic crystals. Experience and personal connections are very useful as a strength that has been in the UV-LED industry for a long time. As much as the research and development was difficult, the application ability is also high. I am keenly aware of the importance of working on difficult research and development. Over the past two decades, China has risen to power through a brute force approach that could be described as capitalist socialism. However, looking at the changes in recent times, we can see that not only the real estate industry but also the manufacturing industry is undergoing a shakeout. Market principles seem to work more in China than in Japan. Japan must renew its socialist, stupid boiled frog zombie policy and open the country. Metabolism is necessary to maintain health, and the country is the same. What we gained from the opening of the country at the end of the Edo period is more than what we lost. If war breaks out like in Ukraine, the economy will be ruined, so maintaining peace is the most important proposition, but the Japanese economy must be corrected in a healthy direction.
A photo of a Micro UV-LED Display emitting RGB white light
September 9, 2022
What I think about the sudden depreciation of the yen.
