Is Japan's Reign Over? 

It's spreading

why dont they just import 3 million pakistanis!

@@violentjiggler Is this from the Arkham subreddit?

@@Trizzer89 yes

yeah what the heck?? at this rate nvidia will be 80% of the global economy!

I think it looks fun and good, personally.

​@@Se7enRemainfound big a's alt account

Taxes?

A mandatory go fund me that you have to file every year

I think every person in the US would have to donate 83,000 dollars, including children lmao

@@koltenknipp damn children need to start paying their fair share

Afaik you easily get an exemption, just gotta go to the city hall.

Atrioc the type of guy to read this and chuckle out loud

run buddy run

Just pay it

Just don’t pay it

So the absolute payments on old debt is set but wouldn't that set amount be easier to pay with more inflation since that means money is worth less and so that set amount is also worth less?

@@remcon559 Yes! Inflation helps the debt burden. Technically inflation helps everyone in debt, but especially governments. You’ll hear the term “inflate away the debt”. But doing so comes with its own problems.

While this is true, I think it’s fine for him to say it as he did. The added information would garner more confusion from a non financial/economical crowd. Especially since almost all of the debt is rolled at maturity. All debt will become new debt eventually. (doesn’t help that Janet sold so much short term when interest rates were near 0 :) )

Basically what you're saying is that governments can afford to increase interest rates as long as they make budget cuts so they don't have to keep borrowing as much as they have been, but I think he's just focusing on the scenario where that doesn't happen because naturally budget cuts are very unpopular, and thus governments, particularly democracies, are constantly disincentivized to do them.

"No, no. Japan is fine. I think..."

@@alittar8062thanks for the TL notes my fellow “kaigai-nikki”! Wish the subs were piss-yellow though

Jep

@@ForteTHv2idk what that means, but I will never watch twitch ever. Solely RU-vid viewer

​@@legendhoffman4330cool bro

@@legendhoffman4330chill bro he was agreeing w u

For your average person, no. The Central Bank interest rates doesn't directly affect you in any way. It is all indirect. Basically, the Central Bank rate is the rate at which a bank (like your local bank) can borrow from the government to lend you money. The bank you visit is a business that has upkeep and needs to pay staff and rent. So they need to charge a premium on the rate they can borrow from in order to survive. So the Central Bank rate indirectly affects the rate you borrow from, as it means they can charge less interest and still make money. For example, if Central Bank rates are at 2%, the bank will borrow at 2% and add another 2% on top for their margin and offer you a 4% loan. If Central Bank rates are at 0%, they will offer you roughly a 2% interest rates. When the Bank of Japan was offering negative rates (-0.25%), the bank was likely offering you 1.75% interest loans. These numbers will vary from bank to bank and based on your credit score and why you need the money. But the point is that the Central Bank rate is the rate that banks can borrow from the government at. As well as the rate the government is paying for bonds which also affects the cost of consumer debt. It is also worth remembering that a government bond in the government currency is 100% going to be paid back as the government can control the currency. Your personal loan isn't guaranteed to be paid back because you could get hit by a bus and the lender will have no recourse.

@@mattbenz99 Let me add that the European Central Bank set negative interest rates between 2016 and 2022.

@@mattbenz99 thanks a lot for making sense of this

ICANT VIP 🤣🤣🤣

This guy gets it

Glizztering gliztmas

These changes are effected through real economic mechanics (the issuing and buying back of government bonds), not just dictated by the government. Hardcore economic controls (price-setting) can have limited short term success but are ineffective long term as it flies in the face of how economics actually works.

Then you have shortages.

100% we can't just only buy what we can afford and save money

He has a very surface level view of economics and finance. For example, he doesn't understand that the market is attempting to price in future events, not current events. During the peak of the Great Financial Crisis (GFC) in 2009, the S&P 500 went up 26% in 2009. This wasn't because the market thought the economy was good. This was because the market realized that the recovery had started and that the GFC wasn't the going to be the decade long crash that people expected. They were essentially making a probability bet that the economy of time would improve. This is likely what is happening now. The 2023-2024 economy was pretty mediocre, but the market is predicting that the 2025-2027 economy will be back to full speed ahead. It is pricing in the future expectations being better than the current economic situations.

@@mattbenz99 Ah yes, of course. The market is totally rational and efficient. What's it called when one hypothesizes about a market full of just rational actors with perfect information buzzing around so efficiently? Dunno, escapes me. But yeah completely elementary and this atrioc guy doesn't know nothing!

@@kphaxx Dude, the market is a collection of millions of people making buy and sell decisions on individual securities. The market isn't affected by people buying and holding the S&P 500 as a whole, it is affected by people trading individual stocks. Trading defines prices, not holding. You clearly have a fundamental failure of understanding of the market efficiency theory. In every second the market isn't rational, but it will trend towards efficiency over time as new information comes out. This is basic fact as if the market wasn't efficient, it would be extremely easy to beat the market as an active investor. Yet, the fact that beating the market over the long run is so hard is proof that it is efficient. If it wasn't then 98% of active managers wouldn't underperform the market average.

@@mattbenz99The future event of Nvidia being able to make more money than every major gas company

@@Thisisthegreatestatofalltime Nvidia's margins are 2500%, yes 1 sale nets them 25x their cost to produce. This is why Nvidia went to the fucking moon. Oil companies have a low PE right now over fear of new regulation in the next decade. This is very common with a lot of declining industries. Basically, even if oil makes a ton of money, if the EU suddenly makes a new law that hurts them, that can destroy these companies' profits. So the price is low as a risk premium.

It’s a word used to signify dominance, control, authority, influence, etc. in a particular sphere or domain

Fair

The one they formerly had, pay attention 😂

Example, in the US, regular people, companies, and even foreign governments buy US treasury debt because it’s considered VERY SAFE. This is because in theory, the US could just print more money to pay you back (that would increase inflation, but you would be paid back.) So people invest in it as a “safe investment.”

@@senseiadam-brawlstars9465 You mean like bonds? because they have terrible interest rates, when you take into account inflation, you are actually losing money on them.

They have had problems with deflation, that’s why interest rates were so low.

Wdym if Japan is finally put in a humbling position? It's been like this since the 90s. On top of that, it's historically been an unwelcoming and homogeneous culture dating back to it's founding due to it's geography. Just cause it's in financial debt and is a nice tourist destination doesn't mean it's a nice place to immigrate, just look at Greece. To immigrate you'd have to adapt to it's distinct culture while facing prejudice and live in a grueling work culture in the middle of a weakening yen. Theres a reason why their net migration rate has been declining year over year

Good news for who? You still have to pay those foreigners who come from countries with higher wages and more relaxed work culture. The reasons that make Japan appealing may also go away as resources are depleted. I hope you’re right and that’s easy, but I have a hunch that it takes years (if not decades) of battle tested policies and cultural changes to have a pipeline that makes easy for foreigners not just to immigrate but to also integrate. Japan is full of some of the most thoughtful people I’ve ever met. I hope they get through this without sacrificing their culture and values. (a Japanese Canadian living in Japan) 日本は何とか頑張るしかない

So you're saying Japan being in an economic crisis is actually GOOD because it makes the country potentially more appealing to Americans?

oh wow decades of economic theory just down the gutter now! thanks for the advice. no wonder people still harp on about marxism centuries after it was dead on arrival

deflation is super dangerous because it isnt that, its "its cool, im not going to buy this because tomorrow it'll be cheaper" on a societal scale. nobody buys shit when a currency deflates which means low revenue for the economy, which leads to more deflation, which leads to lower revenue. Its a dark, dark economic spiral that we do NOT want.

The last 2 periods of deflation were from 2008-2009 and from 1929-1933. In other words, Great Recession and Great Depression. Cool if you can maintain your income whilst prices go down and ride out the market downturn, decidedly not cool if you lose your job, can't find another, and have to dip into savings or go into debt just to survive.

​@@Alexander_choiI don't get this reasoning, isn't it the same with any investments? I'm saving as much as I can because a dollar spent today is like ten dollars out of my retirement. It's not like I literally spend nothing, so I don't see how deflation would completely halt the economy. Maybe for six months people would be scared

@@radeklew1 depends. The problem with currency deflation is that it’s not just the money. EVERY asset loses value. Investments, homes, stocks, and most importantly, PENSION FUNDS (that’s your retirement), almost every if not every asset class suffers. This is known as a depression. Aka 1929 and 2008. Additionally, when deflation occurs, debt skyrockets and it leads to extreme financial instability in banking and governments. The value of your debt remains the same but your purchasing power is higher so therefore your debt is effectively more expensive. Unemployment skyrockets as businesses no longer make enough money to pay workers because the consumer is spending less, and those unemployed workers can’t find other jobs and now are no longer in the workforce. This process would last much much longer than six months. You’re looking at years of an almost unsaveable economic spiral

Video is English dubbed so no subtitles rip