The sky is completely falling in Japan
Unexpectedly, after sanae takaichi won the election of the leader of the Liberal Democratic Party, the yen exchange rate actually fell by 1.2%, which shows that the market is not optimistic about her election as the leader of the party and her subsequent appointment as Japanese Prime Minister.
Why is the market pessimistic?
First, she relies too much on the United States and fantasizes about a rapid and strong Japan, which may lead to uncertainty in regional peace, while China's comprehensive strength has been raised to a new height.
Second, her behavior is more pragmatic and, while seeking cooperation, will also limit expansion in high-tech and other fields, which could lead to the Japanese economy falling into a dungeon.
Third, the 15% tariff imposed by the United States on Japan + $550 billion investment still needs to be implemented, and she has also promised, which is equivalent to hollowing out Japan's finances.
Fourth, Japan's prime ministers change frequently, but the United States does not pay too much attention, and the markets are concerned about Japan's economy and political volatility.
At present, Japan will continue to follow the United States in the future and will rely more on it. Once it invests real money in the United States, this will have a huge impact on Japan's economic development and trigger exchange rate fluctuations in the short term.
So Japan will be forced to choose to cooperate strongly with China, but in some specific areas, such as biomedicine, semiconductors, etc., Japan will take a conservative stance. but this is not important, because China has achieved independence, but Japan's next innovation will be greatly discounted and gradually self-confiscate.
To summarize: the reason the market exchange rate will fall is because Japan is about to enter a new dungeon, becoming both conservative and radical, but if you try the bottom line of China, then it may suffer a serious injury, because China's power is countless times Japan's.
In contrast, South Korea can understand the importance of cooperation with China, so Japan will still seek cooperation with China, at least let local governments act and proactively show China, after all, the urgent task is to increase fiscal income.
Unexpectedly, after sanae takaichi won the election of the leader of the Liberal Democratic Party, the yen exchange rate actually fell by 1.2%, which shows that the market is not optimistic about her election as the leader of the party and her subsequent appointment as Japanese Prime Minister.
Why is the market pessimistic?
First, she relies too much on the United States and fantasizes about a rapid and strong Japan, which may lead to uncertainty in regional peace, while China's comprehensive strength has been raised to a new height.
Second, her behavior is more pragmatic and, while seeking cooperation, will also limit expansion in high-tech and other fields, which could lead to the Japanese economy falling into a dungeon.
Third, the 15% tariff imposed by the United States on Japan + $550 billion investment still needs to be implemented, and she has also promised, which is equivalent to hollowing out Japan's finances.
Fourth, Japan's prime ministers change frequently, but the United States does not pay too much attention, and the markets are concerned about Japan's economy and political volatility.
At present, Japan will continue to follow the United States in the future and will rely more on it. Once it invests real money in the United States, this will have a huge impact on Japan's economic development and trigger exchange rate fluctuations in the short term.
So Japan will be forced to choose to cooperate strongly with China, but in some specific areas, such as biomedicine, semiconductors, etc., Japan will take a conservative stance. but this is not important, because China has achieved independence, but Japan's next innovation will be greatly discounted and gradually self-confiscate.
To summarize: the reason the market exchange rate will fall is because Japan is about to enter a new dungeon, becoming both conservative and radical, but if you try the bottom line of China, then it may suffer a serious injury, because China's power is countless times Japan's.
In contrast, South Korea can understand the importance of cooperation with China, so Japan will still seek cooperation with China, at least let local governments act and proactively show China, after all, the urgent task is to increase fiscal income.