this post was submitted on 07 Jun 2025
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[–] Lumisal@lemmy.world 4 points 15 hours ago (1 children)

A huge currency reserve of Japan is the dollar, which is why there's now some economic instability, as the dollar has lost a lot of value due to Trump's market manipulation.

It doesn't mean the yen is weak, it means the commodities markets will be in flux, as that's what things tend to fall back onto when things like these happen.

It's also why cheap rice specifically has a shortage, and why Japan has found itself in a catch 22 for the importation of rice. What they could do is go from importation restriction to tariffed but allowed if they want to increase the rice supply and stabilize the price of domestic rice. But that would require some flexible legal framework that's hard to write because you can't keep rice imports opened now while deflation is still strong without killing most domestic production. Best solution is to allow import from somewhere where rice isn't as cheap but still competitive, plus a very small temporary tariff that could over time be dissolved slowly, in my opinion at least.

There's a whole lot of cascading effects happening right now because of the unstable US economic policy and much of the world having their currency either pegged to the US dollar or having it as a primary currency reserve. Some major economies like the EU are benefitting, but the closer the economic ties are to US the worse the effects are.

[–] Drusas@fedia.io 1 points 12 hours ago (1 children)

The yen was weak last year as well. It's not Trump's doing.

[–] Lumisal@lemmy.world 3 points 10 hours ago (1 children)

Something can be bad but still become worse

[–] Drusas@fedia.io 0 points 9 hours ago (1 children)

Obviously. But it's incorrect to blame this on Trump. He just made it worse.

[–] Lumisal@lemmy.world 1 points 26 minutes ago

...if he made it worse, then how is it incorrect to say he is part of the reason the yen is doing worse this year? That is in fact fully his blame. Everyone here has been primarily talking about the current cheap rice shortage in Japan after all, not about the Yen's performance last year. What is happening currently is in part fully because of Trump's market manipulation.