@@aintnoway5508I have the wildly unpopular opinion that the song was not good. Bars were fire and didn’t have a problem with the lyrics but Kendrick sounded like he was holding back tears in the beginning and was also voice cracking and sounded hella weird for like 50% of the song
It is all relative. Japanese debt is held almost exclusively by Japanese citizens. Japan is at no risk of actually defaulting on the debt. What Atrioc really missed here is that since so much of Japanese debt is held by Japanese citizens, raising interest rates will actually destroy the buying power of their own citizens because raising interest rates causes the price of old bonds to fall. This will essentially guarantee Japan a recession. The real issue in Japan isn't the government's ability to afford higher rates, it is the Japanese people's ability to actually handle the rate increases.
@@mattbenz99Japanese dept is mainly own by the bank of Japan. So no its not own by japanese citizen. The bank of japan is a printing machine thats it.
@@Yannick3585 They are the largest individual holder, not the only holder and not the majority holder by a long shot. The Japanese people own the largest share.
This is annoying af. It used to be so easy to mentally convert yen to usd. It was just 1 yen is one cent. They really need to fix this, it makes watching anime slightly more diffiucult.
As a foreigner working in Japan, seeing the Yen tumble over the past 3 years has been tough. The politicians here are still stuck in the 80's Bubble-era mentality of "a weak yen is good for the Japanese economy." Sure, that was true back then, when Japan was a net exporter, but nowadays it just hurts everyone involved. Cost of living, food, imported goods, and utilities have become increasingly exepensive for the average person here. That leads most consumers to cut discretionary spending, which keeps inflation "low" in the eyes of the MOF and BOJ, so they are reticent to raise interest rates past 0%. This, in turn, causes the Yen to weaken even further. I have a bad feeling that this vicious cycle is going to keep going until Japanese companies are unable to compete in foreign markets, at which point the JP government will be forced to intervene, causing greater market instability
The quality of life thing is so true. I remember when I studied abroad and my friends were complaining about how everything was starting to get more expensive, like how the conveyor belt sushi places used to be 100 yen for two pieces and now it's 115. Meanwhile as an American I just see that they can afford to be full time students working part time jobs and affording rent, where they have apartments for like 30,000 yen a month (roughly $200). They don't even know how bad it can get
yeah I just got back from a 2 week trip to Tokyo and I spent less than $3000 including air fair and housing (and me and the 2 friends I went with managed to rack up a $700+ tab at a bar one night) if you've ever wanted to travel to japan now is the time.
@@j.tommy.h yeah we didn’t do anything to extravagant the one night at the bar was by far the most expensive thing we did, other than the plane tickets of course.
Low crime is not exactly true for Japan, police just refuse to bring people before a judge unless they are absolutely sure they will get prosecuted. So theres just a lot of crime that doesnt get punished
@@fuatann There is no way to know that... Same with r-word stats btw, stats imply it's low, but everything from the news to the culture of rampant sexism and saving face seems to indicate it's a big problem. And also true for minor SA, which had numerous high profile cases back to back recently. The infamous trick of "If we don't prosecute it, it's not happening" does wonder on stats. Same logic to say Sweden has a lot of r-words when it's just way less lenient on what constitutes a r-word.
The Japanese stock market is only doing so well because a lot of big Japanese companies have most of their revenue coming from foreign currencies. So in Yen terms, these companies have been having incredibly profitable years. In Dollar terms, these companies are doing only alright. But since the Japanese stock market is priced in Yen, it has skyrocketed due to how much extra value these companies are getting from their foreign currency revenues. A US investor maybe would have seen a ~20% return in the last year, which matched the S&P 500 with less tax efficiency (foreign stocks are taxed worse than domestic stocks), but a Japanese investor would have seen a 50%+ return in the stock market last year.
Not to mention rich people take out a lot of debt due to good credit scores and to funnel there money to debt repayments to avoid the taxes and debt of the wealthy gets devalued from low interests common to high credit score individuals, so there are plenty of wealthy individuals profiting like no tomorrow from inflation sadly I'm not one of them. 💀💀💀(he did cover this another time)
It's been facinating to see over the last decade how Korea has been quick to monetize their cultural relevance, but Japan hasn't really done that. Japanese companies are happy to do licensing deals with foregin companies so that they don't have to deal with marketing to english audiences, but that means the foregin companies take like 90% of the profit. Japan has improved over the last decade. I think Sony should take most of the honor for that, but I also want to mention smaller players like Good Smile Company who have done a good job of reaching forigen markets.
The Debt/GDP has been a very controversial topic in japan for years. a large portion of it is due to post WW2 requirements when the US essentially began occupying japan. There's quite a large cost defence wise. While the US provides personnel, Japan has to pay for infrastructure expenses. Which as everyone knows, are astronomical in any government project. Trump requested that they quadruple their spending on bases to $8 billion US anually, threatening to pull troops out if they didn't comply. This has been going on for decades with various presidents. And that's not even getting into american puppet prime ministers that essentially funnel money out of the country. TLDR ; Japan is essentially getting venture capitalist'd by America.
This is a good explanation, but I have one question. When Trump threatened to pull US troops out of Japan, why wouldn’t Japan be okay with that? I understand the American presence there is no longer an occupation and more of an alliance thing, but it seems like it would make more sense to just have Japan’s own military handling that instead of a foreign one.
Interesting. Japan spends about 1.4% of their gdp on defense, while most Nato members target 2% (the US and Russia being the outliers at 2.85 and 3 respectively). These numbers come from the Japanese Defense Ministry. How would that spending have differed if the US did not maintain a presence there?
Deterrence. Plenty of nations want US troops for this reason. Really weird relationship where nobody likes the U.S. military industrial complex but they really like the boots
"She went to Wendy's the other day..." -- Wendy's is *extra bad* when it comes to price. It also seems to be just fast food that's completely losing its mind over price bumps. Like, most burger places are still gonna be like $10-12 for a large combo and Wendy's is $16, it's very stupid. Meanwhile, a nice sit-down burger place in the same lot is like $17. There is no reason to go to Wendy's, and that's even before they started eyeing that dynamic pricing scam lol
So, so long as the interest payments on my money in the bank beats inflation, I’m good. But if inflation beats my interest, I’m effectively losing money?
Watching Atrioc more and more, I continue to question if there’s literally any economy in the world that is truly succeeding and projected to improve in the next 50+ years.
Just a random Big A listener but it’s great to finally hear an American talk about the reason behind the rise of the Nazi party. It was not at all initially anything to do with the identity of the population (to an extent), the anger was down to the living standards which were hamstrung by the treaty of Versailles. With the standard of living so low and the average person struggling, it gave rise to a nationalist party which promised to fix all the economic and (perceived) societal problems that arose due to the eventual problems the people were in. Doesn’t that sound similar to today? Please don’t blame your neighbours, blame your government.
You covered the policy side well but there is another important factor which is the cultural side. Japanese people tend to be very against price increases, much moreso than people in other countries, with companies even going on air to make public apologies for raising the price of a product by a few cents. This along with being frugal and risk averse (as well as economic trends) is a big reason why yen has been relatively stable despite the large injection of cash.
Japan has spent the last 2 decades chilling in a mellow decline I think it's definitely very interesting but I also don't really think anything crazy will happen for another decade(frog boiling in water situation).
In Romania after the 1988 revolution to topple the communist regime, it was a big inflation but the bank that was state owned (there were not such thing as private banks then) just let the housing loans be same because they were owned and build by the factory that my parents worked that was owned by the state. So my parents went from paying 1.800 lei where their household wage was 6.000 lei to 1.800 lei loan pay where their household wage was 6.000.000 lei. P.S. A loaf of bread was 2.000 lei at the time.
the reason BOJ is not raising interest rate is japan is in deflation. nothing to do with national debt. its macro Econ 101 stuff. the interest rate on debt they owe is FIXED. when they issue new debt interest rate is higher. just the owner of the debt is F ed. same thing in US, thats why many small banks in US are in big trouble. but FED has to rise the interest rate to keep inflation low. FED cant afford to lower the interest rate.
I have been banging the drum on this for months. BoJ is gonna be cornered like the BoE during the ERM. It’s only a matter of time until the currency speculators start forcing further intervention. Inflation crisis if they don’t raise rates, default if they do raise rates.
They can always raise taxes and do things to make sure the people on the bottom don't drown. But that is not allowed in current economic policy, but is definitely the way out
Bitcoin is deflationary. We are going to see this experiment in deflation play out in the next decade on a massive scale. It will be good for average people.
bruh just tell your citizens that you're gonna inflate the currency to pay off debt ahead of time, so they can buy what they need before inflation rekt their savings
I just came back from my second trip to japan and I was shocked how normal everything just is. We met up with some local friends and in their like day to day they don't really feel any difference. Like food was already super cheap, even for japanese people, and because they also manufacture so much in Japan (Sony, Nintendo, Toyota, etc.) they can still buy many 'luxury' items like Cars, TVs, Cameras, Phones... Also most japanese people tend to go on vacation inside of japan and don't really leave the country, so that also hasn't changed. That's like 90% is still the same as before. Just when it comes to foreign products or going on international trips it's a problem. Of course they are not happy with the fact that the yen is plummeting, but life in general still is quite normal. At least for my friends there. I do hope then yen bounces back quick though. I want the hyper tourism to end and enjoy japan in peace again 😅
There was a company called Long Term Capital Management that did that Arbitrage type of trades, where they traded bonds of different interest rates and profiting from the difference. They were incredibly smart professors, but the issue is that one of the companies, Russia, got tired of being toyed with their shitty interest rates, so they took out of the trade. Some other countries followed, leading to a multi-billion dollar debt that required the US government to bail them out. At the end of the day, even the "safest" investments are gambling, and the sad fact is that it hurts people when you have a huge amount of power.
this same thing is happening in america but with inflation making our barely increased wages and non existent federal minimum wage increases in god knows how long. I make $26/hr plus and have less buying power than i did at 18 when i was making $10.75 and all thats changed is i now work way more hours than i did back when i was 18 and at a better paying gig.
i saw on tiktok some fashion nerds who were like "with buyee.." watch me buy so much clothes from japan since the yen is so cheap!! and they are buying the weakest dumbest hype band wagon fast fashion shi ever 💀
Could you do a more in depth video on this on what tools are usually used to combat this type of spiral, and why Japan isn't able to use them? If possible, thanks!
Crazy how we’re seeing this similar situation happen to a bunch of nations all in pretty quick succession with more on the way… maybe capitalism is kinda not good?
5:55 this isn't really possible to inflate away debt irl. If a government creates inflation, banks charge more interest seeking to maintain their return in real terms. So even if the debt is worth not as much, the debt still costs more and can't be inflated away.
@@greenoftreeblackofblue6625 Narrowly, it's possible in the short run when the inflation is unexpected - but not in the long run because of investor pricing. The level of unexpected inflation would also have to be extremely high before it would have a meaningful effect (more than expected inflation+real interest return). That's what I mean by isn't really possible, it's an extremely impractical strategy after the first year or two so you need to have sudden Zimbabwe level inflation for it to work.
"The stock market is doing well but the everyday person is doing badly". So just like the US but to a much larger extent with the debt. I think Atrioc might be a little out of touch by saying that statement does not apply here in America. And yeah quality of life is terrible since you need money to do anything
