JAPAN`S NEXT PROBLEM

As we know that's yen has rallied from 125 to sub 100 levels in matter of 4 months .And we also know that Japan have 1.5 trillion dollar worth of US treasuries.So if yen appreciates by 20% than US will make 20 % on 1.5 trillion dollar or 300 billion of notional profits ( which is almost the amount of US subprime losses) because Japan has invested into a depreciating asset (which get depreciated by 20%)..Secondly Japan's economy is 4 trillion USD and major portion is export. Again USA and china are the major partners . So if its currency appreciates by 20 % than one can imagine what will happen to exporters . ( just imagine what will happen to Infosys if rupee appreciates from 40 to 32 level

Msg By Sadhana Vartak