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Dollar Falls Below 100 Yen
By YURI KAGEYAMA
3/13/2008



TOKYO (AP) — The dollar dipped below 100 yen for the first time in 12 years Thursday and hit record lows against the euro amid a growing consensus that synchronized efforts by central banks will not stop a deterioration in the U.S. economy.

The U.S. currency's slide likely won't stop until worries subside about the U.S. credit crunch, set off by a spike in defaults on risky mortgages, said Yasuo Yamamoto, senior economist at Mizuho Research Institute in Tokyo.

A strong yen makes the nation's exports more expensive abroad and erodes profits from overseas.

"That's not good for Japan's economic growth," said Yamamoto.

So far this year, the dollar has fallen 10 percent against the yen. It was trading at 102.04 yen late Wednesday in New York.

Japanese company officials have expressed worries about the dollar's recent weakness.

Just hours before the dollar's decline below 100 yen, Toyota Motor Corp. President Katsuaki Watanabe acknowledged some worries about excessive currency fluctuations.

While declining to comment on the dollar's drop, he told reporters that Toyota may have to come up with new steps, not just cost cuts, as a possible response. He did not elaborate.

"We may have to think whether there are other things to do," he said.



FULL ARTICLE
 

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While declining to comment on the dollar's drop, he told reporters that Toyota may have to come up with new steps, not just cost cuts, as a possible response. He did not elaborate.

"We may have to think whether there are other things to do," he said.
They will figure out another way to manipulate the Yen. Easy answer...
 

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Basic international finance, for those who went to business school.

Toyotas get shipped in. Demand for yen goes up, because people want to pay the Japanese for their Camrys. Demand for the dollar goes down. Price of yen goes up, less profit for Japanese. Prices of Camrys go up, people turn up their noses, buy Malibus, and the demand for yen subsides, and consequently, the price.

If only life were so simple...
 

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They should be worried. They have contributed to this mess with there sneaky way of infiltrating our country with there cars and putting our own manufactureres out of business. Do you see Japan letting us put Chevy, Ford or Chrysler factories in Japan? Yeah right! How long before our only choice of automobile is Toyota and Honda just as our only choice of department store is Walmart and Target? We as Americans need to do our part by making much more educated choices in what we choose instead of relying on clueless yuppie rags like CR that are clearly not capable of rating anything but appliances and even some of there appliance recommendations are flat out bogus such as the made in China Dyson vacuum which is a very expensive throw away piece of crap that lines vacuum repair shops with more issues that I can write on one page.
 

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I thought they made everything here?
 

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They will figure out another way to manipulate the Yen. Easy answer...
I think you are totally wrong. I'll admit the general statement that just about ALL major nations manipulate their currency....HOWEVER...the United states is the biggest currency manipulator or everyone. The fact that the dollar has become, in some cases 50% or more, weaker versus other major currencies in the past couple of years (the dollar is stronger now than it was in 10+ years), shows that by running trade and budget deficits, the US is the stronger manipulator of their own currency than anyone.
 

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Boy they are dumb. It is because of the influx of their cars that this country is going down hill!
Wow - I wouldn't expect anything less from the average American. Always find someone else to blame, don't take any responsibility.

Didn't the domestics have like 99% of marketshare? Didn't the domestics mess up due to poor quality, poor management, idiotic uaw demands? But as a proud American lets not blame ourselves. Its Toyota's fault.
 

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I think you are totally wrong. I'll admit the general statement that just about ALL major nations manipulate their currency....HOWEVER...the United states is the biggest currency manipulator or everyone. The fact that the dollar has become, in some cases 50% or more, weaker versus other major currencies in the past couple of years (the dollar is stronger now than it was in 10+ years), shows that by running trade and budget deficits, the US is the stronger manipulator of their own currency than anyone.
Not quite right. Trade deficits are not formed solely to "manipulate" the currency. Sure, they have an effect on it, but you do not build up a deficit to soley alter the currency. You DO manipulate it through other means, such as interest rates, which are the fastest way to do it. The U.S Central Bank has lowered interest rates a lot in the past while...part of it is to support our manufacturing industry (cheaper/ more compeititve exports from the U.S.). Unions should be very happy.

There is no other major power that has manipulated its currency more than Japan. They have done it for decades to artificially support exports, being a manufacturing country, in the face of the Chinese, etc. Problem for them is how long can they continue to do so in the face of the U.S. now doing the same? While the media negatively and simplistically reports on the U.S. dollar's "decline," the reality is many U.S. manufacturing companies would be out of business if it weren't for the "weaker" dollar. The lower dollar has put tremendous pressure on other countries who have lived off an absurd exchange rate, not manufacturing efficiency, to flood the U.S. with cheap imports. Canada is one of them, and now many politicians and companies up here are openly worried about a dollar that is at par. Most manufacturers up here no ways near as efficient as their American couterparts. They just lived off a cheap dollar for so long...
 

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Bad for gas prices, great for sticking it to the imports. They already subsidize the price of their vehicles to be priced lower than they should; this will help to level the playing field.
 

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Wow - I wouldn't expect anything less from the average American. Always find someone else to blame, don't take any responsibility.

Didn't the domestics have like 99% of marketshare? Didn't the domestics mess up due to poor quality, poor management, idiotic uaw demands? But as a proud American lets not blame ourselves. Its Toyota's fault.

i agree with you in the sense that Toyota and Honda didn't force Chrysler, Ford, and GM to build low quality junk in the '80s, that was all on them. however, the issue right now isn't just that, but the fact that the Japanese government plays tricks with their currency and imports into their country that make it impossible for us to play the game on their soil. we have made it easy for them to import cars into our country for sale and we haven't been granted the same courtesy from Japan. so Japan does own some of the blame.
 

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Wow - I wouldn't expect anything less from the average American. Always find someone else to blame, don't take any responsibility.

Didn't the domestics have like 99% of marketshare? Didn't the domestics mess up due to poor quality, poor management, idiotic uaw demands? But as a proud American lets not blame ourselves. Its Toyota's fault.
I am sure you are probably from a country that doesn't even have its own car industry... ;)

I am in Canada and all Candians do, at least the mouthy ones, is blame the U.S. for everything...In the papers, on tv, yap yap yap yap...I guess most Canadians have too much time on their hands to get reflective of how small we are compared to the U.S. (they grew fast, we didn't) and how 92% of all our exports go to the U.S. We wouldn't survive if it wasn't for the likes of American companies like GM building things here. But, who the loud Canadians usually just blame all our dependency on the U.S, well, on the U.S.! Yup, the same U.S. companies who pay the majority of taxes that keep our our dilapidated health care system alive and social services...Good thing there are Canadians who understand this...We just seem to be the quiet ones. ;)

Honestly, it is usually the rest of the world that can't stop bitching about the U.S....Just imagine if they spent most of their time working and not bitching, they might actually compete with a certain superpower. ;)

We all now Toyota did well for a while when the U.S. automakers were not doing well...But they also relied of cheap labor (to get started), ultra-low currency rate, free American borders to trade (Japanese have never), etc. Today they still protect their borders from fair competiton. If AMerican cars are so bad and Japanese cars just so damn good, then why does the Japanese governement work extra hard to make it almost impossible for U.S. auto companies to do business there? What are they afraid of?
 

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I am sure you are probably from a country that doesn't even have its own car industry... ;)

I am in Canada and all Candians do, at least the mouthy ones, is blame the U.S. for everything...In the papers, on tv, yap yap yap yap...I guess most Canadians have too much time on their hands to get reflective of how small we are compared to the U.S. (they grew fast, we didn't) and how 92% of all our exports go to the U.S. We wouldn't survive if it wasn't for the likes of American companies like GM building things here. But, who the loud Canadians usually just blame all our dependency on the U.S, well, on the U.S.! Yup, the same U.S. companies who pay the majority of taxes that keep our our dilapidated health care system alive and social services...Good thing there are Canadians who understand this...We just seem to be the quiet ones. ;)

Honestly, it is usually the rest of the world that can't stop bitching about the U.S....Just imagine if they spent most of their time working and not bitching, they might actually compete with a certain superpower. ;)

We all now Toyota did well for a while when the U.S. automakers were not doing well...But they also relied of cheap labor (to get started), ultra-low currency rate, free American borders to trade (Japanese have never), etc. Today they still protect their borders from fair competiton. If AMerican cars are so bad and Japanese cars just so damn good, then why does the Japanese governement work extra hard to make it almost impossible for U.S. auto companies to do business there? What are they afraid of?
Nice response. Actually I am an American from America. I happen to be part of the 10% that takes responsibility for my actions and don't look to blame others. Thats' why I'm part of the 10% that owns 90% of the wealth in this country!

Interesting story for you and your kind about the 'brainpower' in the US. Did you know that over 70% of all PhD engineers teaching in American colleges are foreign born? That's the real brainpower in America. Or the almost 50% of PhD scientists in Ameica who are foreign born. America is lucky and thankful that it attracts the brain power from the rest of the world because that is what allows us to be the superpower.

Interesting story about what happened at one of our high schools recently. At graduation 5 math scholarship awards were handed out for $2,500.00 each. Each one of the 5 went to the 'foreign' americans - all were from either Pakistan, India (2), China, and Singapore. Not one 'white' american as is probably your definition. The parents at the school complained to the administrators that the foreign kids got all the math scholarship awards and poor 'Johnny' didn't get any and it was unfair. Instead of directing the blame at themselves and thier stupid offspring for not working harder, they were complaining about why Mohammed and Xing got the math awards.

Classic case of why 90% of people like you probably are in debt and live life blaming others for your own failures. GM (which thankfully is doing much better now) is responsible for where they are today. I don't know of too many Americans who decided one day to suddenly buy a Toyota because they wanted to put GM out of business. GM has learned their lessons as is seen by the new cars they are building (like the malibu, aura, etc...). However, the loss of money, marketshare, etc... was the direct result of what they did and did not do for 30 years. Toyota would be a niche player in the market today if the domestics had not messed up. If GM had put the same effort into cars that they did in trucks they would not be where they are today. Anytime any of my various businesses needed a truck i've only bought domestic for the simple reason that the domestics have always had the best large trucks in the business. Cars - a totally different story until very recently.

But of course, its always much easier to blame others for your own failings - be it an individual or a company .
 

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Nice response. Actually I am an American from America. I happen to be part of the 10% that takes responsibility for my actions and don't look to blame others. Thats' why I'm part of the 10% that owns 90% of the wealth in this country!

Interesting story for you and your kind about the 'brainpower' in the US. Did you know that over 70% of all PhD engineers teaching in American colleges are foreign born? That's the real brainpower in America. Or the almost 50% of PhD scientists in Ameica who are foreign born. America is lucky and thankful that it attracts the brain power from the rest of the world because that is what allows us to be the superpower.

Interesting story about what happened at one of our high schools recently. At graduation 5 math scholarship awards were handed out for $2,500.00 each. Each one of the 5 went to the 'foreign' americans - all were from either Pakistan, India (2), China, and Singapore. Not one 'white' american as is probably your definition. The parents at the school complained to the administrators that the foreign kids got all the math scholarship awards and poor 'Johnny' didn't get any and it was unfair. Instead of directing the blame at themselves and thier stupid offspring for not working harder, they were complaining about why Mohammed and Xing got the math awards.

Classic case of why 90% of people like you probably are in debt and live life blaming others for your own failures. GM (which thankfully is doing much better now) is responsible for where they are today. I don't know of too many Americans who decided one day to suddenly buy a Toyota because they wanted to put GM out of business. GM has learned their lessons as is seen by the new cars they are building (like the malibu, aura, etc...). However, the loss of money, marketshare, etc... was the direct result of what they did and did not do for 30 years. Toyota would be a niche player in the market today if the domestics had not messed up. If GM had put the same effort into cars that they did in trucks they would not be where they are today. Anytime any of my various businesses needed a truck i've only bought domestic for the simple reason that the domestics have always had the best large trucks in the business. Cars - a totally different story until very recently.

But of course, its always much easier to blame others for your own failings - be it an individual or a company .

Yes, obviously you are the type of American who believes you are right by pointing out your wealthy and better then everyone around you.

Excellent job at oversimplification and revisionist history.

Intersting story for you, and your kind: Those "foreign kids" came here because they didn't want to live in their countries. What does that say about how brilliant they are?
 

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Nice response. Actually I am an American from America. I happen to be part of the 10% that takes responsibility for my actions and don't look to blame others. Thats' why I'm part of the 10% that owns 90% of the wealth in this country!
Some people choose to do work that doesn't make them rich, but instead holds some larger societal value. You should be careful not to suggest that those who aren't wealthy aren't responsible or capable. I know you didn't mean that, I'm just referencing how it could sound.

Interesting story for you and your kind about the 'brainpower' in the US. Did you know that over 70% of all PhD engineers teaching in American colleges are foreign born? That's the real brainpower in America. Or the almost 50% of PhD scientists in Ameica who are foreign born. America is lucky and thankful that it attracts the brain power from the rest of the world because that is what allows us to be the superpower.
The truth tends to differ from those cheap shots about immigrants not working hard.
 

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Nice response. Actually I am an American from America. I happen to be part of the 10% that takes responsibility for my actions and don't look to blame others. Thats' why I'm part of the 10% that owns 90% of the wealth in this country!

Interesting story for you and your kind about the 'brainpower' in the US. Did you know that over 70% of all PhD engineers teaching in American colleges are foreign born? That's the real brainpower in America. Or the almost 50% of PhD scientists in Ameica who are foreign born. America is lucky and thankful that it attracts the brain power from the rest of the world because that is what allows us to be the superpower.

Interesting story about what happened at one of our high schools recently. At graduation 5 math scholarship awards were handed out for $2,500.00 each. Each one of the 5 went to the 'foreign' americans - all were from either Pakistan, India (2), China, and Singapore. Not one 'white' american as is probably your definition. The parents at the school complained to the administrators that the foreign kids got all the math scholarship awards and poor 'Johnny' didn't get any and it was unfair. Instead of directing the blame at themselves and thier stupid offspring for not working harder, they were complaining about why Mohammed and Xing got the math awards.

Classic case of why 90% of people like you probably are in debt and live life blaming others for your own failures. GM (which thankfully is doing much better now) is responsible for where they are today. I don't know of too many Americans who decided one day to suddenly buy a Toyota because they wanted to put GM out of business. GM has learned their lessons as is seen by the new cars they are building (like the malibu, aura, etc...). However, the loss of money, marketshare, etc... was the direct result of what they did and did not do for 30 years. Toyota would be a niche player in the market today if the domestics had not messed up. If GM had put the same effort into cars that they did in trucks they would not be where they are today. Anytime any of my various businesses needed a truck i've only bought domestic for the simple reason that the domestics have always had the best large trucks in the business. Cars - a totally different story until very recently.

But of course, its always much easier to blame others for your own failings - be it an individual or a company .
Interesting points. I personally believe its multi-factorial and a lot of hyperbole is in play. There were many reasons for the Japanese ascent in the US auto industry - ranging from the fuel crisis, poor decisions by GM, the vietnam war, and yes - the Japanese commitment to their auto industry.

We like to have the issue dumbed down for us - and strong opinions seem to be valued because we have such a morbid fascination with conflict and winning.

Here's two opinions:

A) American cars were just terrible through the 80s - rolling pieces of garbage. Japanese cars were so much better - vastly more fuel efficient, never had any issues - all you had to do was change the oil and they ran to 200K. GM builds an inferior product, union workers just looking for a handout and engineers that are not as skilled as their japanese counterparts. If you need to get to work in the morning, Japanese is the way to go.

B) The japanese government, sore about losing WWII seized on the opportunity to destroy American industry after the fuel crisis. They used government intervention to compete unfairly against the americans and because liberals began to hate their own country they developed traction in this market. Their cars aren't really more reliable and the media overlooks their problems due to liberal bias.

Makes for a great debate. Problem is - the truth isn't sexy, doesn't inspire conflict, has no easy solution, and lies in between.

The Japanese, living in a small, populous country had experience in building small vehicles and a culture that valued reliability over excess were well positioned to capitalize on the fuel crisis and a new generation of Americans that via the destructive Vietnam war didn't put a priority on supporting American industry and were open to new products. This was a regional phenomenon that developed traction in California, spread to the coasts and was largely ignored by GM as a temporary event. Through poor leadership by GM - they continued to build product that was not well positioned and chose to compete on features and power rather than quality - a strategic mistake. When GM finally did decide to compete head on - they faced a difficult scenario (competitive disadvantage) due to several factors. First, a union that rightly wanted GM to honor its commitments and would not allow cost cutting to match their foreign counterparts which had significant advantage, a government that via the US citizens did not believe a manufacturing economy was valued, a japanese government that thought the opposite, and a delay in adopting the manufacturing strategies employed by their competitors. Thus - GM focused on vehicles where they could compete - vehicles with high profit margins as if Toyota makes 10K on an SUV, and GM makes 7 - thats far more sustainable than GM losing 1K on a Cavalier and Honda making 1K on a Civic. This would again prove to be a mistake, as the fuel crisis would return - leading to the marketshare losses of the current decade. GM failed to predict that fuel prices would rise while Toyota again use their home market of high energy costs and population density to pioneer innovative technologies that were applicable to the US. Also, intense competition and an open government policy led to inevitable marketshare decline from many new competitors. It wasn't until 2004 that GM began to realize that cost parity with their competitors was the key to success and that the American public had largely lost all concern with the geographical origins of the companies they bought product from. They finally attacked the problem at its root - and confrontation with the union was the result. Also, GM failed to capitalize on the inherent efficiency of using all their worldwide resources as a comprehensive unit. The situation is improving as GM is proving it can compete effectively in all areas except small cars. Hence, their current plan to do whatever is necessary to eliminate the cost difference and compete head on in the area of small, fuel efficient cars bringing their worldwide experience with this issue to bear on the US market finally realizing high energy costs are not a transient phenomenon.

But that type of multifactorial analysis which actually explains some of the issues doesn't package well into soundbites and requires time and research to understand, let alone express to others. Its just much easier to make statements like GM sucks, toyota rules - or only Toyota builds reliable cars, or the japanese are trying to destroy america. Thats much simpler.
 
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