Originally posted by DaRAGE
well the yen right now is meant to be of high value. I dont know how it would suddenly collapse...
It wouldn't collapse overnight, but Japan is facing a number of serious problems: declining youth base to support the older people, hollowing out of
industry as jobs flee to cheaper places like China, and so on. It is said to be the G-8 nation most deeply and negatively impacted by the current
global downturn.
The thing is, if a currency collapses, it collapses relative to something else. So if people flee the yen, where will they go? The dollar? The euro?
Both of these are problematic for reasons that should be apparent to anyone who keeps up with financial news. The Chinese currency will eventually
have to strengthen to "pick up some of the slack," but China is trying desperately to avoid that for now. Commodities?
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