TOKYO – If you want to know what losing control of a monster you created looks like, Japanese monetary authorities offer a dramatic example.

Tokyo loses control of the Frankenstein currency it created while Washington keeps feeding its fire-breathing monster dollar.

Currency exchange in Tokyo

For roughly 25 years now, since at least 1997, a weaker exchange rate has been the ruling Liberal Democratic Party’s top policy tool. Twelve governments later, though, the yen’s drop to 140 to the dollar – a 22% loss this year – is more of an economic liability than a benefit.

In years past, a sliding yen was a boon for exports. Now, the weakest exchange rate since the late 1990’s has Japan importing inflation amid surging prices of oil and other key commodities.

The yen’s plummet speaks to two even bigger problems. One is how it might kick off new currency skirmishes in Asia. Two is the Frankenstein-like threat facing the Bank of Japan and Ministry of Finance as they endeavor to halt the yen’s plunge toward 150.

Asia Times / ABC Flash Point News 2022.

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Gideon
Gideon
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07-09-22 00:28

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Gideon
Gideon
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07-09-22 00:29

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Gideon
Gideon
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Reply to  Gideon
07-09-22 00:29

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Gideon
Gideon
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07-09-22 00:29

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Donnchadh
Donnchadh
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07-09-22 01:27

This is what happens when your country is sub-subservient to the USA ,you implement policies that are heavily disadvantageous to your own country . America doesn’t want Japan to compete industrially with it just like its doing to the EU but just to be a means of selling US arms and an “aircraft carrier ” for its never-ending wars -that combination is the USA,s means of financial sustainability and renewal . Meanwhile Russia & China using the Russian VTB bank has started its MIR system of money transfer using the Yuan and Russia is considering buying Billions of Yuan –the… Read more »