It’s strange to feel like this because I’ve spent a quarter of my life here. But as I get older, I have to start thinking about the future, particularly finances. I’d like to start a family, buy a home, etc, but I’m really worried about the yen collapsing.
It seems like western financial institutions are opening up short positions against the yen. I had heard that the yen could continue to drop to 180-190 end of year, and possibly to 250 within a couple of years. If this happens, my savings will be devastated (they already are).
A lot of people go, “well if you stay here it doesn’t matter”. But I think it does matter. You see shrinkflation everywhere, I think businesses tried their best to keep things normal (which is something I love about Nippon, local businesses don’t want to reduce the quality or excessively raise prices) but now purchasing power is dropping dramatically without meaningful raises. On top of that, good real estate is propped up by speculators who are trying to get deals, making it even more unaffordable for us.
If the yen hits 200+, basically half of my savings over the past 8 years will be wiped out. This is extremely depressing. Imagine putting away money each month diligently for almost a decade, only to see half of it wiped out within 3 years. Again, if you “stay” it doesn’t matter as much, but imagine going elsewhere and paying $45 dollars for a hamburger and fries. It makes it so you basically can’t leave.
What are your plans? Are you concerned? Or do you think the hype is overblown? Wallstreet is opening shorts against Japan which is not a good sign…
by PinkMoonLander
