Japan posts record trade deficit of $9.92 billion in January

Discussion in 'Economics' started by ASusilovic, Feb 24, 2009.

  1. HONG KONG (MarketWatch) -- Japan posted a trade deficit of 952.6 billion yen ($9.92 billion) in January, reportedly its largest ever, as exports continue to drop at a faster pace than the fall in its imports, according to data released Wednesday. The deficit was lower than the 1.13 trillion yen expected by economists, according to FactSet. Exports tumbled 45.7% and imports slipped 31.7% during the month, figures from the ministry of finance showed. The U.S. dollar was recently buying 96.73 yen in Asia, compared with 96.76 yen earlier in New York.

    USD / JPY 96.68. JPY safe haven ? LOL !!:D
  2. as compared to the US - $55-65 billion a month???
  3. Short JPY and adding more to my position. :)
  4. Debt to gdp ratio of Japan is more than 150%.
    On the other hand, Japanese has much higher saving rate.
  5. On the savings rate, that is financed by the trade surplus (normally). The market isn't pricing in japan destruction quite yet, but if they don't resume normal trade balances (export surpluses), the JPY and its debt is a timebomb.

    Most likely things return back to normal and all of this is non-event...

    But to all the masses (including myself of months past) who think the US is in a treasury and currency bubble, Japan's current position makes the US look like a rock.
  6. Exactly, beside, Japan is the 2nd biggest economy after US, Japanese government maybe in worst financial shape than US government, but most of Japanese has significant saving, and Japanese companies subside its employee's housing. On top of that, Japanese has never recover from its housing bubble in late 80s, so, we will see outflow of JPY for better deal overseas in coming months.
  7. Japan is a VERY screwed up country. Household savings rate that people always mention as a saving grace for Japan isn't gonna help.

    BTW, Japan's debt-to-GDP is more like 180% if you include FILP and other quasi-govt issues.
  8. I don't think you know the real deal behind the whole schemes, of course saving rate matter, currently, BOJ is the biggest owner of debts in BIS(Bank for international settlements). Japanese government maybe broke, but Japanese aren't. BOJ is 2nd major dealer of the 5 members in BIS.
  9. Would you be so kind and share us those 5 members?

    #10     Feb 25, 2009