1. > Now, depreciating the Yen relative to the dollar would clearly help Japan's > exports. and its economy. But wouldn't that encourage recession in the US? > > jim d > > ^^^^^ > 2. > CB: Which would hurt Japan's exports.
Not necessarily if it could sell them for higher profits. I suppose if a 'Walmart' recession were possible, where the biggest spending of American consumers go upscale for quality instead of Chinese made stuff at the lowest possible price, Japanese exports might hurt somehow, somewhere. Japan is pretty locked into certain relationships, though. For one, the more they sell in America, the more they buy from the US, including services. That doesn't mean that the 'structural' trade deficit with automobiles or parts is going to go away, but if you are of the ownership class, mitigating it is the simple fact that GM and Ford are heavily invested in Japanese automobile production. GM, if the US stockmarket doesn't tank, is well positioned to control at least two Japanese automobile manufacturers, Suzuki and Fuji Heavy Industries/Subaru. Ford controls Mazda (and has run it into the ground horribly, Nasser the Jack Welch of lousy cars you understand). And all are also tied up with various parts manufacturers. Charles Jannuzi
