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The yen has now fallen below the 158 mark, and for now, the Bank of Japan will not take any measures, which is miserable for the Japanese people, vividly showing that the speed of wage rise cannot keep up with the speed of price rise.
Unlike the Japanese who live a hard life, the depreciation of the yen can be said to "benefit" the surrounding tourists, who have gone to Japan to collect wool, among them, the most ruthless or Buffett, who made a net profit of more than 70 billion between borrowing and repaying.
The Japanese yen fell below the 158 mark
The yen fell again, breaking through the 158 mark and hitting a new 34-year high, so it seems that it is only a matter of time before the yen falls below 160.
At the end of the two-day monetary policy meeting of the Bank of Japan, they did not do anything.
As soon as this news came out, the yen fell again.
Allowing the yen to fall in this way is not so much a conspiracy behind it as a lack of donkey skills.
Now Japan has two paths: one is to raise interest rates, and the other is to use its foreign exchange reserves.
Previously, we have also seen that Japan's verbal intervention is useless at all, and will only make the market "worse".
So why hasn't Japan raised interest rates yet? According to some Japanese officials, they seem to be more concerned about the impact of inflation than about exchange rate movements. We know that Japan has been in a state of deflation for a long time, and now it is difficult to wait for inflation, so we have to wait patiently to see.
However, the market does not buy the above statement, they believe that the deep-seated reason for Japan's failure to raise interest rates is that Japan's debt is very large, as high as more than 270% of GDP, and the interest rate hike will undoubtedly make Japan's "not rich" situation worse.
Another option for Japan is to use its foreign exchange reserves to buy a large amount of its currency. We used this practice when Soros shorted Hong Kong.
However, for the time being, Japan's foreign exchange reserves are nothing more than a showcase, and they are not of good use.
Judging from the book limit, Japan's foreign exchange reserves are not small, with 1.29 trillion US dollars, but if you look closely, the US debt in it exceeds 1.17 trillion yuan, and the usable amount is only about 120 billion US dollars, so there is no way to stabilize the foreign exchange market.
If it wants to sell US bonds for cash, the United States is the first to disagree, after all, one of the purposes of the US high-level visit to China is to make us not throw away US bonds.
How dare Japan, as the younger brother of the United States?
Foreign tourists pick up Japanese wool
The depreciation of the yen has also attracted a large number of people to go to gather wool.
It is reported that in the past few months, Japanese luxury stores have been crowded by Chinese, specializing in Japanese purchasing people said that in recent months they have been busy sweeping goods in luxury stores in Tokyo, just in this country let help purchasing people There are many people, purchasing goods from luxury bags, cameras to cosmetics.
And now that it coincides with May Day, there will naturally be many Chinese visiting Japan at that time.
According to media reports, information from a number of online travel platforms shows that Japan is the first destination for Chinese tourists to travel abroad during the upcoming May Day holiday, followed by Thailand and South Korea.
On Ctrip's platform, Japan topped the list of popular overseas travel destinations during the May Day Golden Week, and according to data released by Airbnb, a homestay platform, Japan topped the list of popular search destinations this spring.
According to relevant data, the number of foreign tourists to Japan exceeded 3 million in March, a year-on-year increase of nearly 70%, and South Korea ranked first.
However, if the wool is good, the sheep will be miserable, and this sheep is naturally the common people in Japan.
Unlike the price of cabbage sold in luxury goods, the cost of production in Japan has been pushed up step by step, and the prices of some food and daily necessities have continued to rise.
Even in Japan, many people who are willing to travel abroad have begun to bring their own food to cook and eat, and they also carry calculators with them to calculate where it is cost-effective.
What's even more outrageous is that a Chinese cabbage, which was originally 5 or 6 pieces, was sold for 100 yuan, and was even divided into four parts.
In addition, the real wages of Japanese people have fallen due to rising prices, and the daily life of ordinary people has begun to become somewhat stretched, while the spending level of foreign tourists is increasing.
I have to say that the joys and sorrows of human beings are really not connected.
Warren Buffett harvests the yen
However, at present, the wool may be the most likely to be the stock god Warren Buffett.
In 2020, Japan Japan the five major trading companies in Japan, such as Itochu Corporation, Maruki Corporation, Mitsubishi Corporation, and Sumitomo Corporation, Mitsui & Goods, Japan
At the time, $6 billion was invested in this investment activity, and in the years since, Buffett has been increasing his holdings until this year, when his stake has risen to as much as 9%, which is usually considered a major shareholder if the shareholding exceeds 5%.
In addition, there is information that the said funds were actually borrowed by Warren Buffett from Japan. It is understood that in the past three years, Buffett has made a large number of dollar deposits in the Bank of America at a lower interest rate, and used this as collateral to successfully issue a huge amount of yen bonds in Japan.
The interest rates on these bonds are so low that they can almost be seen as money given to Buffett by the Japanese government for free. It was with these funds that Warren Buffett bought a large number of shares of Japan's five major business groups, thus driving the stock prices of these companies to rise sharply.
According to relevant data, from the beginning of this year to mid-April, the average increase of the above five major trading companies exceeded 22%, if calculated according to the 57.5 billion yuan profit obtained by Buffett at the end of last year, plus the depreciation of the yen, Buffett earned at least 70 billion yuan in this investment.
So, why did Warren Buffett choose these five major trading companies?
It is understood that the total net export trade of these five major trading companies accounts for about half of Japan's total net exports, and it can be said that they have firmly grasped the lifeblood of Japan's economy.
According to Buffett's own statement, the reason why he favors the Japanese stock market is mainly because the Japanese stock market has the characteristics of high cash flow, high dividends, and no new shares, and at the same time, it is more cautious in financial management.
In addition, Buffett's golden partner Munger also said before his death that Buffett's investment in the Japanese stock market is mainly due to the deep roots of Japanese overseas companies, which have cheap copper mines, rubber plantations and other natural resources overseas. Moreover, Warren Buffett borrowed at low interest rates in Japan, and then made high returns in the stock market, without directly investing in the real economy, and simply enjoyed the growth of the Nikkei Index.
However, for the time being, the market may have another opinion on Buffett's heavy exposure to the stocks of the five major trading companies, after all, for people like Buffett, they have more or less access to inside information or they are inside information itself.
What is the reason, welcome to leave your views in the comment area.
Information sources:
"The yen is depreciating rapidly, Japan has become the hottest destination on May Day, tourists: you can save more than 10,000 yuan by buying, buying, buying", Times Weekly
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