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@Jason ,Piotr, Alex thanks for answering, as a STEM student I try to keep myself informed on economics. There is a need for universal financial and economic literacy.
The collapse of Japan's bubble was predicted by UK economist Fred Harrison in his 1983 book 'The power in the land', he also predicted the UK and US early 90's recessions in the same book. In 1997 in 'The chaos makers' he also predicted the US and UK crash to occur in 2008. ''By 2007 Britain and most of the other industrially advanced economies will be in the throes of frenzied activity in the land market equal to what happened in 1988/9. Land prices will be near their 18-year peak, driven by an exponential growth rate, on the verge of collapse that will presage the global depression of 2010. The two events will not be coincidental: the peak in land prices not merely signalling the looming recession but being the primary cause of it." And if you're wondering, next crash should be around 2026/7. It's not hard when you look at previous cycles.
@@belladesa91 Not really, it fits in rather nicely (pardon the lack of taste) with the mid cycle dip which is part of the theory. Notice global interest rates are down again setting us up nicely for the next expansion. US house prices have a good amount of headroom and they also have a strong demographic period of prime age workers from 2020-24 so the boom should be strong. www.exponentialinvestor.com/technology/boom-times-are-here-again/
Yeah.very nice info.i don't know it until now so thanks for the info. I believe developed countries in future probably will have to types of crisis . maybe some of these 2 happen.1 crisis growth of population (mostly at least in some countries by immigrants) and lack of enough House's.2 lack of population growth (few immigrants and baby's) . and I believe probably canada will have problems trying to grow their population enough to don't have a crisis.probably they won't will get enough immigrants to supply the aging and shrinking population. Since population statics from 1800s predicted wrongly the population of canada in 20th century will be 100 million.theyre only around right now 35 millions.
I lived in Hawaii during the Japanese property bubble and after it burst. I had always wondered how Japan got to those hundred year mortgages we heard about. This video is a much better explanation than we ever heard stateside when we were trying to figure out how Japanese tourism had completely dried up.
My family and I went to live in Japan in the last few months of the Japanese bubble. During that brief period the appearance of affluence was everywhere, and it felt great to be living for the first time in a society that was not forever plagued by worries about the economy... One of the moments that spelled the end of the "good times" was when, with soaring property values fuelling a collateral-fed borrowing and speculative boom, the them Prime Minister Toshiki Kaifuu announced an intention to bring house prices down to within the reach of the annual salary/wage earner... It didn't take long for the prospect of shrinking collateral values to impact the stock market. One might hope that the lessons of that time would have been permanently learned. Sadly, history suggests not...
@@calmsine7767exactly! This is why I am here reading this comment now. I think we are now in the same bubble today as Japan was and I am trying to figure out what phase we are in. As of now the housing, insurance and new car prices sky rocketed ! Especially houses ! I am thinking next is the banks and the markets since we already had a lot of them close this year alone
From what I understand, Japan is still a powerhouse in manufacturing , it is a mercantile nation, uses automation profusely, has an enviable record on quality of life, and labor versus capital is not antagonistic. So German, the Scandinavian Countries, Canada, and Japan practice some form of social contract. So much in fact m during the pandemic Japanese and German industrialists, and their governments, chose to pay workers to stay recluse. You can’t make such a claim in behalf of the US, and I doubt China or India’s counterparts provided something equivalent. True, the Japanese were sandbagged by Americans. Not only the former meddled with the Japanese Central Bank, a vital cog in their economic engine, they went as far as to nearly bankrupt a Japanese Industrial Giant , Toshiba , back then on Flat Screens. It was a big hoopla during the early 90’s. Toshiba was targeted and penalized unfairly for their competitive advantage. Yet, Japanese industrial Keiretsu oriented giants expanded abroad. The 80’s were the watershed moment when Lee Iacocca, then at the helm of Chrysler , challenged Japanese automakers to fair competition by opening up plants in North America. Not only Japanese automakers followed on the dare, they overwhelmingly succeeded. Further , they expanded into Latin America. Yes, the Japanese population is aging, their work ethic still superlative , they are knee deep in debt at the government level. Oddly enough , the average Japanese investor holds more national treasury securities than their American counterparts, and their Debt to GDP is horrible. Yet, people from the world over , given the chance, will want to live in Japan.
@Satryadhamma Putra Japan has a big problem that is also lack of net immigration,countries like germany for example can work around low birthrate because of this.
I lived in Japan during the bubble years on the way up and watched it in real time as it came back down. It really was wild. Really wild. Makes me think of how SF must have been like in the gold rush days. He missed out on the whys/hows/and wherefores of it and what brought it down. But did a nice job on going over some of the machinations of what happened. I'd give him a solid 80 on it.
The PE and debt ratios are not as high, and the Japanese collapse only happened when their Fed increased interest rates. We have learned from that and only raise interest rates when the economy is on stable ground. What I wonder is if this policy can only delay the inevitable.
I feel like half of this video is just flashy cuts , title cards and stock video of modern japan with no context. Guys, people aren't dumb, you can present the information in a straightforward way.
Well the Japanese ‘“miracle” wasn't much of miracle but a carefully planned plan from some few politicians to hold the ¥ to $ ratio at 360/1 so Japanese firm could export everything cheaply to US-markets for three four decades and then a real estate boom happen in the 80s that did burst in the early 90s and have in a clinical stagnation since.
@@my0.02cents well yes but not really because China have a gigantic labor market and very cheap hand of labor, I would say it's more like South Korea infact the Korean system is the same as the Japanese a few conglomerates who basically run monopolies that kind of compete against each other but not really!
yeah if the bosses want to not pay people for the work and therefore we have the state to regulate it and tax it! People should also have armed unions behind them too.
Wow, I'm pretty baked and that ad at the beginning really messed with me. I totally forgot what video I clicked on and was wondering why in the world I chose to watch this video.
More accurately, the western economic system is not perfect. Japan's economy cratered in the early 90s, sure, but they were still way ahead of Germany and France after the bubble burst than they were before the bubble started.
*Japanese economy in the late 1980s. This development involved fundamental economic restructuring, moving from dependence on exports to reliance on domestic demand.*
Theirs some similarities to this with what's happening to the US now, cheap money, with the stock market at a all time high, while the actual physical economy is at a all time low.
don't forget all the unemployed people, or with such low wages people cannot afford anything not to mention no decent safety nets to help them get back on the job when it all comes crashing down
In my opinion were in for another great depression, followed by a cold war or a world war with china that may or may not be fought with conventional weapons or cyber warfare if trump wins, even with biden it wouldn't be much better as he will likely make more concessions to china to regain the status quo, which will weaken the US and strengthen China bid for top dog.
@@nobo1682 I agree other then I don't think Biden actually be any better the Dems feel more pro war then the republicans where as Trump is very much more isolationist
If you look at china's past isolationism cost them dearly, as the west advanced toward the future, china and the east stagnated in the past, obsessed with their past glories, for goodness sake gunpowder was invented in the east and yet it was the west that turn it into a weapon to dominate the world.
china has draw lessons from the plaza accord, predicting this might happen to them, they visited japanese officials who signed the plaza accord in the early 2000s, and now the chinese government is facing similar front with trump's trade deal.
@@manfreds.6384 the plaza accord was to depreciate the dollar and euro in response to the japanese yen, therefore increase market competitiveness of the german and us. its the lead contribution to the japan's lost decade.
@@lemarcoX the euro wasn't a thing during this time. also the dollar depreciated not only from the Japanese yen, but also to the pound, franc and german mark. America was in its right to depreciate it's currency as the other countries were already doing that anyway. Japan economy grew 7-10% percent annually between 1986-1989. When it was just growing 4-5% between 1980-1985. The plaza accord was also abolish in 1987 replaced by the Louvre accord while the Japanese bubble burst in 1990.
The stuff this channel produces is really great....but many times facts are not right or selectively picked ...so that everything can fit into their narrative... Maybe you should double check the things they say or at least be skeptical
Guys I just want to say this channel never interacts with its English viewers, there is a lot of stuff we want changed but they will not listen to you here
@@AG-en5y It’s ridiculous for what it is everywhere else as well. It high for a city of the GDP or amenities globally in Toronto and Vancouver. It’s high for a town or mini city with terrible weather everywhere else.
@@AG-en5y That is the point. There is no value for money in most of Canada. You can spend 700k USD in Freeport, New York be on the ocean and less than an hour drive from Time Square, some of the best restaurants on the planet and be able to catch bluefin tuna seasonally.
While this is a good explanation of the bubble & burst, Japan's continuing economic problems stem from a much more simple issue; population. People are the biggest drivers of an economy. An economy can maintain steady growth if they, (A) have a steady population growth rate, like with the US, or (B) lift people up from lower economic value(poverty), China. Japan's population is straight up, decreasing, with a severe aging problem, and on top of this, by the time of the Japanese bubble, the population was already fully developed (no one to lift up from poverty).
Steady population is okay provided exports keep growing to support increased productivity. Japan is being out performed in the export markets by all the other asian tigers and particularly China. Si Japan is on a lose lose.
@@johntheaccountant5594 Yeah, AI will identify the world's problems and eliminate us - no population requirements; no population (at least not human population).
It's always a good thing to live a long and happy life...except that, in order to achieve it, the old and dying have diverted vital national resources from the development of the youth and future of thier civilizations, only to prop themselves up for a few more years. It's a criminally poor investment and needs to be reversed: the old need to be allowed to die and the youth must be allowed to prosper in order to save their respective societies/cultures/traditions. Otherwise the crab-bucket mentality of the old are gonna take us all down with them when they're toast
@King Crusader they themselves were manipulating their currencies for decades prior to the plaza accord by increasing their money supply to keep low against the dollar. China is doing just that increasing the yuan supply to artificially lower its value against the USD.
Meanwhile, back in present day... ...Nio generates about 1% of the revenue of Toyota, - but has an evaluation of nearly 40% of Toyota... ...Tesla is trading at a P/E ratio of around 1200 ...and Bitcoin, an asset with arguably no underlying value at all, has increased in price by more than 5 times over the past 12 months.
The video content was great as always, but the amount of ads interrupting the video, combined with the amount embedded in it made feel like I'm watching a commercial break... Is it really necessary?
Great information but the music felt distracting at times. I think it's bc the sound volume just shoots up when he's not talking; something at a more consistent level would be better I think. The music choice isn't my favorite either but that might just be difference in taste.
And now the same is happening in the USA: Zero interest rates Money Printing Banks lending Share buy backs Company take overs PE Ratios of +50 The result is an increase in the value of shares, real estate and debt. So the USA can continue to print for a while longer.
We in Canada are doing the same in the past 10 years. Very low interest rate caused borrowing to skyrocket. Real estate price is sky high plus foreign buyers have invaded Canada many from China. Our American neighbour had their buble burst back in 2008 and now the bubble is full blown again with the stock market at high level during a global pandemic lol. Stock market crashed back in March in the beginning of Covid pandemic but it's back up already - full bubble lol. Waiting for it to crash again lol.
down in the lower 48 we call it "the everything bubble" i sold my house and cars and moved to japan last month because i've seen how this movie ends, I got caught in the 08 housing bubble and rode it out until now but i spent many years under water. The dollar yen exchange rate now gives me a 30% discount using dollar credit cards but i don't know how long thats going to last. i don't know what's propping up the us dollar. Well i do know actually. The dollar is the best game in town but that isn't saying much. Europe is in even more of a mess. If japan's intervention of the 10 year bond yield curve blows up and the exchange rate goes parabolic, i might buy a house here.
I would really like to see an episode that explains how countries such as Germany and Japan became such powerhouses after the dreadful destruction they lived during WW2
They was a lot of policy decisions, austerity, The Marshall Plan etc. And a very important catalyst, access to the US Market. US gave them preferential access and allowed most of these countries to sell them their products.
I would also like to know the details since I’m guessing that The USA basically pulled one of those “he’s wit me” moves and bouncers let the loser enter the club (Japan). I’m guessing there’s a reason why the JNP currency is part of the International Monetary Fund
Just pick up Peter Zeihan's ad nauseum repeat public engagements prior to COVID. You will get the idea. He will tell you how America bribed the war ravaged countries by giving access to free trade, for as long as the Americans policed the seven seas and everybody else followed their lead. Or in the iconic Marlon Brando's Godfather, " I will make an offer that they can't refuse" . The caveat was, the other Nations would help the US against the wave of communism, and all would enable the US currency to be the the facto trading currency ( that later solidified with OPEC oil exporters ). It is being done since decades, as other nations bankroll the US Industrial Military Complex through buying US issued Debt ( Sovereign Debt purchases ). As result, every nation could manufacture and export their surpluses, nearly duty ,free to primarily the US. Most other nations, even the exporting ones, maintained barriers and tariffs. Also, again, most export transaction are pegged on the US Dollar. Lastly, the Americans sweetened the deal with the Marshall plan, literally bankrolling Europeans and Japanese with funding and loans to get their then in shambles economies, restarted.
@@z2zugzwang thats incorrect most of it came from the military surplus, japan and germany WHERE ALREADY leading world economies before the war, it is said that a country dies with its people, as long as there are highly educated people left the country will rebuild (japan had the highest literacy rate out of any country at the time)
I strongly suggest this documentary on this topic: ua-cam.com/video/p5Ac7ap_MAY/v-deo.html Visual Politik miss the main cause behind this bubble and burst. The central bank of Japan was controlled by pro-Americans neo-liberals that created this disaster on purpose. They were trying to force the government of Japan to drop it's window guidance policy, deregulate its economy and adopt austerity. To punish the government, they let the economy collapse by preventing private banks from creating new money. While they could have given a realistic quota to the banks through window guidance policy and therefore prevent the worst, but they needed a big shock to force structural change on Japan government. In the end, American venture capitalists get a huge discount on japan real estate.
I don't get it. This is a politics channel. It's not for kids. What's with the idiotic emojis in the video names? Who are you trying to captivate? You think teenagers are interested in Japan's economy? You're just pushing away more invested and interested viewers with this very unprofessional look
Nuno Cuco I don’t pay any attention to emojis. All I care is the quality of content and presentation. For the time being, VP editorial staff does a decent job with the Channel. Not perfect but serviceable. There are some serious alternatives out there , such as The Caspian Report. Yet VP provides a condensed analysis and summary, not always spot on, as some have pointed, nonetheless interestingly. They seemed to be overly preoccupied with keeping the benchmark numbers, and you can tell it by the way they cater their message towards Americans. It’s a business of media for revenue generation , first and foremost.
@@AntonioCostaRealEstate Sim. Fixe. Mas isso n justifica a necessidade de emojis. Caspian Report dwells on interesting subjects but I don't find the presentation of the information as captivating. Sounds more like a teacher giving a lesson. I use emojis in casual talk regularly, but don't think they have a place here
As I recall at the time they estimated over $60 B of that zaitech went straight into the yakuza's coffers-and that was in 30 year ago dollar estimates...the fourth branch of the Japanese government.
Nearly two minutes of advertising for “finimize” on a 15-minute video is ridiculous: I won’t be watching any more of your channel, let alone subscribe to it!
Honestly, Yakuza and 80s Japanese songs make me wish i was around that time living on Japan, sounds like the best era of humanity's story or one of the most interesting that are also actually suitable for someone to live through it But then i would like to return to the current times in my own country...
@Satryadhamma Putra There is no resources except people in Japan. Big companies' stockholders are non Japanese. Money leave from Japan. Workers reap none of the advantages.
they had tons of innovation, however they had little land and no resources, and had to constantly import, island nations like england and japan are not fit to be a net exporter, they basicly have nothing to export, if any other country switched places with the united states they would be the world power, the geography of the states is the best in the world
Brave decision by Japan to help slow the spread of COVID. Let's all pledge to reward them for their selfless behavior in the coming year by buying Japanese products and planning trips to Tokyo and other Japanese destinations. #thankyoujapan#domoarigatojapan #domoarigatotokyo .
that is a point. Also, the so heralded "Demographic Aging " trend. I am sure migrants are to carry the Japanese's society's burden. There must be migration pockets/ enclaves in Japan. That would be an interesting subject to bring out to light. Thx
Don't forget that japan would overtaken the United States before 2000 but of this bubble put an end to it! Iam an Indian but love both India and Japan. 😀
Very good. The fact that they have been recovering ever since is a bigger mystery, considering how south Korea and china have taken away huge chunks of Japan's exports.
When you're economy and standard of living gets better you can't mafacturer thing at a price consumers are willing to play. It's the same reason Australia, US and most of the Europe don't have mafacturering as a large industry (unless it's heavily automated = no one to pay wages to). China deals with this by artificially deflating the currency or running government owned companies or outsourcing to Africa or buying up African assets though defaulting loans (that realistically African governments or companies could never afford to pay back).
Someone can put subtitles in japanese?!!! I'm curious what japanese have to talk about the old times of financial crisis's and today international healthy crisis.
The most clear explanation that I've come across of the Japnese bubble. I think it's sort of like a vehicle that is running at an ever increasing speed and there seems to be no simple and effective way to stop it soundly.
The one and only leason is dont trust america.... Cause they did all thing to maintain their first spot. The example is the plaza accord. And japan can reject this accord. They were to dependent on the US military..
Options are dont listen to the USA and lose all your export market and military protection, or listen to the USA for promised success while not realizing that Keynesian ecnomices were a failure in the making.
Can you guys please make a video about funded pension plans versus unfunded pension plans PLEASE!!! I SUPPORTED YOU GUYS ON PATREON. FUNDED VS UNFUNDED COUNTRIES PPPLLLEEEASSEEE. If Japan had a funded pension plan in the 50s, 60s, 70s, and 80s, they would have been ok by the time everyone stopped having kids and started retiring.
Thank you so much! Your content is fascinating. I don't how it happened but I'm from Poland and hellllll... I don't know how you appeared on my list. THE INTERNET IS HAUNTED HAppy haLOween
YEEEESSSSSSSS a video about my favourite topic! For more information, watch or read "the princes of the yen" from the excellent book by Richard Werner on Japanese post war economy
The US has the same problems today, the difference is the dollar and US economy is backed by oil (the petrodollar) and the world's strongest navy which protects maritime trading routes. If the US economy implodes, the world will experience an even worse economic crisis than today
if you denominate Japanese assets/real estate by a normalized USD, then the fluctuations arent nearly so great. I lived/worked in Japan 1980s thru the bubble. Got my seed capital from that bubble (thank you guys!)....but as for actual Japanese LIFESTYLE....it's not that different before, after, even 30 years later.....just the NUMBERs look extreme cuz we're denominating in a currency that's experienced major exchange rate fluctuation.... => and NO INFLATION for 20-30 years isnt necessarily a bad thing......nobody else has been ABLE to pull that off....even tho Japan didnt intend it, they got it....
FINALLY I've found a video in which the bubble causes are discussed critically! Bravo! So many crap videos on this topic that sound like an intellectually impaired pre-schooler's interpretation of the information on Wikipedia.
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Understand the biggest finance news and learn to invest with a team of analysts - without jargon. 🍎  “App of the Day”. Try for free today!
Japanese music is good but there should be a Japanese theme instead of a constitution like paper
Why are you guys always talking about Non-white nations and all the bad they do. Why not talk about your own people first
Holy fuck that was a long promo I had to stop the video
@@suleymanabdirahman4425 not always actually. I'm from Brazil you from?
Bubbles are great.
If you are not holding the bag when it bursts.
Forgot who said it, but there are 5 types of economics in the world, free market economy, planned economy, mix economy, Argentina, and Japan
Your right bro. The bank of Japan has gone crazy with QE
What's special about Argentina?
@@milominderbinder6209 Argentina was once one of the world's riches counties, then got turned into developing status
@@milominderbinder6209 I think it went bankrupt like 10+ times
@Jason ,Piotr, Alex thanks for answering, as a STEM student I try to keep myself informed on economics. There is a need for universal financial and economic literacy.
The collapse of Japan's bubble was predicted by UK economist Fred Harrison in his 1983 book 'The power in the land', he also predicted the UK and US early 90's recessions in the same book.
In 1997 in 'The chaos makers' he also predicted the US and UK crash to occur in 2008.
''By 2007 Britain and most of the other industrially advanced economies will be in the throes of frenzied activity in the land market equal to what happened in 1988/9. Land prices will be near their 18-year peak, driven by an exponential growth rate, on the verge of collapse that will presage the global depression of 2010. The two events will not be coincidental: the peak in land prices not merely signalling the looming recession but being the primary cause of it."
And if you're wondering, next crash should be around 2026/7. It's not hard when you look at previous cycles.
Prolly Coronavirus have sped up the 2026 bubble ur mentioning
@@belladesa91 Not really, it fits in rather nicely (pardon the lack of taste) with the mid cycle dip which is part of the theory. Notice global interest rates are down again setting us up nicely for the next expansion. US house prices have a good amount of headroom and they also have a strong demographic period of prime age workers from 2020-24 so the boom should be strong.
www.exponentialinvestor.com/technology/boom-times-are-here-again/
Thank you for this information
And did he predict in which country the next crash will start this time?
Yeah.very nice info.i don't know it until now so thanks for the info. I believe developed countries in future probably will have to types of crisis . maybe some of these 2 happen.1 crisis growth of population (mostly at least in some countries by immigrants) and lack of enough House's.2 lack of population growth (few immigrants and baby's) . and I believe probably canada will have problems trying to grow their population enough to don't have a crisis.probably they won't will get enough immigrants to supply the aging and shrinking population. Since population statics from 1800s predicted wrongly the population of canada in 20th century will be 100 million.theyre only around right now 35 millions.
I lived in Hawaii during the Japanese property bubble and after it burst. I had always wondered how Japan got to those hundred year mortgages we heard about. This video is a much better explanation than we ever heard stateside when we were trying to figure out how Japanese tourism had completely dried up.
WHY IS THE MUSIC ALWAYS TOO LOUD ON THIS CHANNEL
why? its cool comrade
Loud and bad.
The original Visual Politik channel is a Spanish language one, and this seems to be the Latin American aesthetic.
My family and I went to live in Japan in the last few months of the Japanese bubble. During that brief period the appearance of affluence was everywhere, and it felt great to be living for the first time in a society that was not forever plagued by worries about the economy...
One of the moments that spelled the end of the "good times" was when, with soaring property values fuelling a collateral-fed borrowing and speculative boom, the them Prime Minister Toshiki Kaifuu announced an intention to bring house prices down to within the reach of the annual salary/wage earner... It didn't take long for the prospect of shrinking collateral values to impact the stock market.
One might hope that the lessons of that time would have been permanently learned. Sadly, history suggests not...
Ppl keep comparing the US bubble we’re in now to 2008, when in reality it’s actually more similar to the Japanese one
@@calmsine7767exactly! This is why I am here reading this comment now. I think we are now in the same bubble today as Japan was and I am trying to figure out what phase we are in. As of now the housing, insurance and new car prices sky rocketed ! Especially houses ! I am thinking next is the banks and the markets since we already had a lot of them close this year alone
The lesson is don't invest in companies with a PER of 60+.
Take a look at the US stock market today and you'll shit your pants.
Tesla is 1000 lol
@@nolisto1 A new paradigm!
You need to compare P/E ratio with its category avg , bcom fmgc and growth stocks have usually high p/e ratio.
@@sanjanind not 1000
From what I understand, Japan is still a powerhouse in manufacturing , it is a mercantile nation, uses automation profusely, has an enviable record on quality of life, and labor versus capital is not antagonistic.
So German, the Scandinavian Countries, Canada, and Japan practice some form of social contract. So much in fact m during the pandemic Japanese and German industrialists, and their governments, chose to pay workers to stay recluse. You can’t make such a claim in behalf of the US, and I doubt China or India’s counterparts provided something equivalent.
True, the Japanese were sandbagged by Americans. Not only the former meddled with the Japanese Central Bank, a vital cog in their economic engine, they went as far as to nearly bankrupt a Japanese Industrial Giant , Toshiba , back then on Flat Screens. It was a big hoopla during the early 90’s. Toshiba was targeted and penalized unfairly for their competitive advantage.
Yet, Japanese industrial Keiretsu oriented giants expanded abroad. The 80’s were the watershed moment when Lee Iacocca, then at the helm of Chrysler , challenged Japanese automakers to fair competition by opening up plants in North America. Not only Japanese automakers followed on the dare, they overwhelmingly succeeded. Further , they expanded into Latin America.
Yes, the Japanese population is aging, their work ethic still superlative , they are knee deep in debt at the government level. Oddly enough , the average Japanese investor holds more national treasury securities than their American counterparts, and their Debt to GDP is horrible.
Yet, people from the world over , given the chance, will want to live in Japan.
Your comment was very interesting for me to read. Thank you.
@Satryadhamma Putra Japan has a big problem that is also lack of net immigration,countries like germany for example can work around low birthrate because of this.
Not a bad read from an arm chair. But Japan is an onion-and you barely got thru the first layer.
@@kentnelson762 Ok, I am sure you can fill in other than give me a "onion first layer peel" type of answer. Got anything else to add?
They are pretty xenophobic.
The police prosecutors/district attorneys enjoy a 99% conviction rate.
100% for foreigners.
I lived in Japan during the bubble years on the way up and watched it in real time as it came back down. It really was wild. Really wild. Makes me think of how SF must have been like in the gold rush days. He missed out on the whys/hows/and wherefores of it and what brought it down. But did a nice job on going over some of the machinations of what happened. I'd give him a solid 80 on it.
I was hoping you made a video going into more detail. It would help people to get such direct experience information.
Life inside a economic bubble is so blissful
I heard that real estate and cabaret clubs were really popular back then too
Dam no one here gets the joke 😔
@@duh_raven I don’t get it
@@AnonYMouse-ky4sg Yakuza game reference, I think
@@martinki11 Yep,Yakuza 0. But the main plot of the game is about big Yakuza clans that want to buy a zone from a district from Tokyo.
I'll make an offer...
looks pretty much like what the USA is experiencing now
Canada too. Especially after covid
Yeah I supposed that. That's why I came here. We dont have Zeitex but the rest is there.
Correction
We have the equivalent of Zeitex.
Buffet talked about it in his annual speech to investors
@@Agorax_gg what’s the equivalent to zeitex?
The PE and debt ratios are not as high, and the Japanese collapse only happened when their Fed increased interest rates. We have learned from that and only raise interest rates when the economy is on stable ground. What I wonder is if this policy can only delay the inevitable.
2:00 for the actual video and skip the ad
Ty
I feel like half of this video is just flashy cuts , title cards and stock video of modern japan with no context. Guys, people aren't dumb, you can present the information in a straightforward way.
Well the Japanese ‘“miracle” wasn't much of miracle but a carefully planned plan from some few politicians to hold the ¥ to $ ratio at 360/1 so Japanese firm could export everything cheaply to US-markets for three four decades and then a real estate boom happen in the 80s that did burst in the early 90s and have in a clinical stagnation since.
thinking of china right now. A few similarities. Thoughts?
@@my0.02cents well yes but not really because China have a gigantic labor market and very cheap hand of labor, I would say it's more like South Korea infact the Korean system is the same as the Japanese a few conglomerates who basically run monopolies that kind of compete against each other but not really!
@@kristoffervalen2935 yea but automation will kill its gigantic labor market you know
yeah if the bosses want to not pay people for the work and therefore we have the state to regulate it and tax it!
People should also have armed unions behind them too.
@@kristoffervalen2935 you think the communist party would allow that lol
Wow, I'm pretty baked and that ad at the beginning really messed with me. I totally forgot what video I clicked on and was wondering why in the world I chose to watch this video.
lolol thanks for sharing
Lesson: western economic system is not as good as it seems. Probably Eastern countries should throw it and write new one.
More accurately, the western economic system is not perfect. Japan's economy cratered in the early 90s, sure, but they were still way ahead of Germany and France after the bubble burst than they were before the bubble started.
China says hi c:
you mean escape being an american colony?
*Japanese economy in the late 1980s. This development involved fundamental economic restructuring, moving from dependence on exports to reliance on domestic demand.*
I understand English might not be your first language. But try to expand your point, if all possible.
Thanks
@7:24 I'm really starting to think that I should introduce these two guys to my parents, as we have been seeing each other for a while now.
Are you crazy?
Thats what happen when economy is solely based on real estate and stock market.
Theirs some similarities to this with what's happening to the US now, cheap money, with the stock market at a all time high, while the actual physical economy is at a all time low.
don't forget all the unemployed people, or with such low wages people cannot afford anything not to mention no decent safety nets to help them get back on the job when it all comes crashing down
In my opinion were in for another great depression, followed by a cold war or a world war with china that may or may not be fought with conventional weapons or cyber warfare if trump wins, even with biden it wouldn't be much better as he will likely make more concessions to china to regain the status quo, which will weaken the US and strengthen China bid for top dog.
@@nobo1682 I agree other then I don't think Biden actually be any better the Dems feel more pro war then the republicans where as Trump is very much more isolationist
If you look at china's past isolationism cost them dearly, as the west advanced toward the future, china and the east stagnated in the past, obsessed with their past glories, for goodness sake gunpowder was invented in the east and yet it was the west that turn it into a weapon to dominate the world.
@@nobo1682 yup chian and india used to control 50% of world for 2000 years
That's some deep Yakuza lore there
china has draw lessons from the plaza accord, predicting this might happen to them, they visited japanese officials who signed the plaza accord in the early 2000s, and now the chinese government is facing similar front with trump's trade deal.
it wasn't the plaza accord that was the problem germany, france and uk signed it too. It was the Japanese response to it.
@@manfreds.6384 the plaza accord was to depreciate the dollar and euro in response to the japanese yen, therefore increase market competitiveness of the german and us. its the lead contribution to the japan's lost decade.
@@lemarcoX the euro wasn't a thing during this time. also the dollar depreciated not only from the Japanese yen, but also to the pound, franc and german mark. America was in its right to depreciate it's currency as the other countries were already doing that anyway. Japan economy grew 7-10% percent annually between 1986-1989. When it was just growing 4-5% between 1980-1985. The plaza accord was also abolish in 1987 replaced by the Louvre accord while the Japanese bubble burst in 1990.
I am from India. I like this channel very much
I like India. It is a beautiful country.
The stuff this channel produces is really great....but many times facts are not right or selectively picked ...so that everything can fit into their narrative...
Maybe you should double check the things they say or at least be skeptical
Just today, the Nikkei index just surpassed its 1989 peak closing value of 38915.87, closing at 39098.68.
Guys I just want to say this channel never interacts with its English viewers, there is a lot of stuff we want changed but they will not listen to you here
"Housing market completely unaccusable for young people". Sounds familiar (European)
I'd love to see a video addressing the Canadian real estate bubble.
Canadian?!? Lol u mean Toronto and Vancouver brah. No whereywhere else do u see those kind of ridiculous pricing
@@AG-en5y It’s ridiculous for what it is everywhere else as well.
It high for a city of the GDP or amenities globally in Toronto and Vancouver.
It’s high for a town or mini city with terrible weather everywhere else.
@@TheRoyL I’m from Winnipeg Abd now in St. John NFL and you can get a water front new 3 level home for 800k. It’s pretty darn fair in Winnipeg as well
@@AG-en5y That is the point.
There is no value for money in most of Canada.
You can spend 700k USD in Freeport, New York be on the ocean and less than an hour drive from Time Square, some of the best restaurants on the planet and be able to catch bluefin tuna seasonally.
@@TheRoyL no way 700k for a water front house
Thank you for the video!
5 ads breaks, cancer of youtube
Use adblock... I NEVER got any ad...
Had 0 😁
Use adblock browsers. UA-cam has just too many ads these days.
I never get an add even with out Adblock
@@nononsense2731 how do we do that on our phones tho?
Thanks for the video.
Did they drop the requirement to wear a Hawaiian shirt?
While this is a good explanation of the bubble & burst, Japan's continuing economic problems stem from a much more simple issue; population.
People are the biggest drivers of an economy. An economy can maintain steady growth if they, (A) have a steady population growth rate, like with the US, or (B) lift people up from lower economic value(poverty), China.
Japan's population is straight up, decreasing, with a severe aging problem, and on top of this, by the time of the Japanese bubble, the population was already fully developed (no one to lift up from poverty).
Steady population is okay provided exports keep growing to support increased productivity. Japan is being out performed in the export markets by all the other asian tigers and particularly China. Si Japan is on a lose lose.
Population growth is not going to be needed with AI and IT and robots and automation.
@@johntheaccountant5594 Yeah, AI will identify the world's problems and eliminate us - no population requirements; no population (at least not human population).
It's always a good thing to live a long and happy life...except that, in order to achieve it, the old and dying have diverted vital national resources from the development of the youth and future of thier civilizations, only to prop themselves up for a few more years. It's a criminally poor investment and needs to be reversed: the old need to be allowed to die and the youth must be allowed to prosper in order to save their respective societies/cultures/traditions. Otherwise the crab-bucket mentality of the old are gonna take us all down with them when they're toast
@@bobby5776 aren't we a little ray of sunshine. Sounds like you have mummy issues.
What the hell is Zytech? I can't look it up.
After hours of searching, I'm convinced they made it up. Dislike the video.
@@sebastianelytron8450 same here. The quality of these videos seems to drop as time passes.
It's Zaitech. Not Zytech
its zaitech its on google
Despite not being into economy, I enjoyed this video a lot
It's never late to join our wonderful world! Hint: stay away from those into Finance, those are the "bad" economists
@@belladesa91 I will take this into consideration, thank you very much
You are more pleasing to watch than the other new guy :) Keep it up!!
The plaza accord is the main reason Japan got collapsed economically.
Why?
NO! How come germany, uk and france did not suffer as japan did? It was Japanese Central Banks response to the accord that is the problem.
While Germany and France have the Euro, the Yen is not used outside of Japan.
@@user-ql9ew5d they did not use the euro at that time they adopted the euro more than a decade after the plaza accord.
@King Crusader they themselves were manipulating their currencies for decades prior to the plaza accord by increasing their money supply to keep low against the dollar. China is doing just that increasing the yuan supply to artificially lower its value against the USD.
Bank : You want to go in dept?
Japan: Yes.
Ai senpai
I graduated in 1988 , and had no idea that this was going on.
Meanwhile, back in present day...
...Nio generates about 1% of the revenue of Toyota, - but has an evaluation of nearly 40% of Toyota...
...Tesla is trading at a P/E ratio of around 1200
...and Bitcoin, an asset with arguably no underlying value at all, has increased in price by more than 5 times over the past 12 months.
3:02
Josh mentioning all the electronic products he is too young to know
How old is he?
The video content was great as always, but the amount of ads interrupting the video, combined with the amount embedded in it made feel like I'm watching a commercial break... Is it really necessary?
Great information but the music felt distracting at times. I think it's bc the sound volume just shoots up when he's not talking; something at a more consistent level would be better I think. The music choice isn't my favorite either but that might just be difference in taste.
This video came out one year too early. Should be now the right time.
And now the same is happening in the USA:
Zero interest rates
Money Printing
Banks lending
Share buy backs
Company take overs
PE Ratios of +50
The result is an increase in the value of shares, real estate and debt.
So the USA can continue to print for a while longer.
hey im just wondering what your sources are about this :)
We in Canada are doing the same in the past 10 years. Very low interest rate caused borrowing to skyrocket. Real estate price is sky high plus foreign buyers have invaded Canada many from China. Our American neighbour had their buble burst back in 2008 and now the bubble is full blown again with the stock market at high level during a global pandemic lol. Stock market crashed back in March in the beginning of Covid pandemic but it's back up already - full bubble lol. Waiting for it to crash again lol.
down in the lower 48 we call it "the everything bubble" i sold my house and cars and moved to japan last month because i've seen how this movie ends, I got caught in the 08 housing bubble and rode it out until now but i spent many years under water. The dollar yen exchange rate now gives me a 30% discount using dollar credit cards but i don't know how long thats going to last. i don't know what's propping up the us dollar. Well i do know actually. The dollar is the best game in town but that isn't saying much. Europe is in even more of a mess. If japan's intervention of the 10 year bond yield curve blows up and the exchange rate goes parabolic, i might buy a house here.
keynesian economics period
Dear admin, also make a video on upcoming Chinese economic bubble which is going to burst soon
one of the best explanations thank you for making the video
Awesome video thanks! Wish you went into a little more detail after the bubble burst but otherwise thanks. Very enlightening.
Thank you!
I would really like to see an episode that explains how countries such as Germany and Japan became such powerhouses after the dreadful destruction they lived during WW2
They was a lot of policy decisions, austerity, The Marshall Plan etc. And a very important catalyst, access to the US Market. US gave them preferential access and allowed most of these countries to sell them their products.
@@z2zugzwang just adding that the US also allowed free global trade with control of the oceans.
I would also like to know the details since I’m guessing that The USA basically pulled one of those “he’s wit me” moves and bouncers let the loser enter the club (Japan). I’m guessing there’s a reason why the JNP currency is part of the International Monetary Fund
Just pick up Peter Zeihan's ad nauseum repeat public engagements prior to COVID. You will get the idea.
He will tell you how America bribed the war ravaged countries by giving access to free trade, for as long as the Americans policed the seven seas and everybody else followed their lead. Or in the iconic Marlon Brando's Godfather, " I will make an offer that they can't refuse" .
The caveat was, the other Nations would help the US against the wave of communism, and all would enable the US currency to be the the facto trading currency ( that later solidified with OPEC oil exporters ). It is being done since decades, as other nations bankroll the US Industrial Military Complex through buying US issued Debt ( Sovereign Debt purchases ).
As result, every nation could manufacture and export their surpluses, nearly duty ,free to primarily the US.
Most other nations, even the exporting ones, maintained barriers and tariffs.
Also, again, most export transaction are pegged on the US Dollar.
Lastly, the Americans sweetened the deal with the Marshall plan, literally bankrolling Europeans and Japanese with funding and loans to get their then in shambles economies, restarted.
@@z2zugzwang thats incorrect most of it came from the military surplus, japan and germany WHERE ALREADY leading world economies before the war, it is said that a country dies with its people, as long as there are highly educated people left the country will rebuild (japan had the highest literacy rate out of any country at the time)
You have no idea how much this video helped me with my bachelor's degree. Thank you so much!
I strongly suggest this documentary on this topic:
ua-cam.com/video/p5Ac7ap_MAY/v-deo.html
Visual Politik miss the main cause behind this bubble and burst. The central bank of Japan was controlled by pro-Americans neo-liberals that created this disaster on purpose. They were trying to force the government of Japan to drop it's window guidance policy, deregulate its economy and adopt austerity. To punish the government, they let the economy collapse by preventing private banks from creating new money. While they could have given a realistic quota to the banks through window guidance policy and therefore prevent the worst, but they needed a big shock to force structural change on Japan government. In the end, American venture capitalists get a huge discount on japan real estate.
Fantastic video. So clearly explained I only had to rewind once to understand something. More, please.
I don't get it. This is a politics channel. It's not for kids. What's with the idiotic emojis in the video names? Who are you trying to captivate? You think teenagers are interested in Japan's economy? You're just pushing away more invested and interested viewers with this very unprofessional look
Nuno Cuco I don’t pay any attention to emojis. All I care is the quality of content and presentation. For the time being, VP editorial staff does a decent job with the Channel. Not perfect but serviceable.
There are some serious alternatives out there , such as The Caspian Report. Yet VP provides a condensed analysis and summary, not always spot on, as some have pointed, nonetheless interestingly.
They seemed to be overly preoccupied with keeping the benchmark numbers, and you can tell it by the way they cater their message towards Americans. It’s a business of media for revenue generation , first and foremost.
@@AntonioCostaRealEstate Sim. Fixe. Mas isso n justifica a necessidade de emojis.
Caspian Report dwells on interesting subjects but I don't find the presentation of the information as captivating. Sounds more like a teacher giving a lesson.
I use emojis in casual talk regularly, but don't think they have a place here
Stock market is not an indicator of a country's economic strength.
^dis. I hate the "Anglo-American" evaluation method for wealth.
video starts at 2:00
I almost left
I liked his videos but dang he extends them with music.
Maybe not my kind of videos.
Thanks for this one thou.
ahhh 1980s and 90s the Golden age of Yakuza. gotta respect that.
The Tojo Clan really wants to buy that Empty Lot.
As I recall at the time they estimated over $60 B of that zaitech went straight into the yakuza's coffers-and that was in 30 year ago dollar estimates...the fourth branch of the Japanese government.
You assume people learn from history.
News flash: They don't. We love to repeat history's past mistakes.
The question is not can we but will we. if history is a guide, the answer is, sadly, no.
Very thorough video!
The lesson is what goes up must come down
1:50 is when the video actually starts.
Great video! I came from the Spanish channel, and this is as good as the other, I´ll support :)
That Wall Street Journal quote just before the crash is priceless. Economics isn't a real science folks.
Nearly two minutes of advertising for “finimize” on a 15-minute video is ridiculous: I won’t be watching any more of your channel, let alone subscribe to it!
Honestly, Yakuza and 80s Japanese songs make me wish i was around that time living on Japan, sounds like the best era of humanity's story or one of the most interesting that are also actually suitable for someone to live through it
But then i would like to return to the current times in my own country...
Japan needs to shortened their workload and invest much more in innovation. I believe innovation was a major part of their success.
@Satryadhamma Putra There is no resources except people in Japan. Big companies' stockholders are non Japanese. Money leave from Japan. Workers reap none of the advantages.
they had tons of innovation, however they had little land and no resources, and had to constantly import,
island nations like england and japan are not fit to be a net exporter, they basicly have nothing to export,
if any other country switched places with the united states they would be the world power,
the geography of the states is the best in the world
@@NeostormXLMAXBoth U.K. and Japan are major maritime powers. In addition both have royal families, coincidence ?
Just imagine witnessing property value go up by x3 in a few years.
can japan do any thing differently to avoid this? like before or after the plaza thing or even way before that? or this is just inevitable
I'm here because of Yakuza 0
Great vídeo
Did you record this before 2008? The U.S. did the same thing.
Like ur shirt John, looks suave
Am I the only one who sees this as a warning to current corona borrowing spree?
Finally they got a new host ... the old one was so bad ...
Video starts at 01:58
Brave decision by Japan to help slow the spread of COVID. Let's all pledge to reward them for their selfless behavior in the coming year by buying Japanese products and planning trips to Tokyo and other Japanese destinations. #thankyoujapan#domoarigatojapan #domoarigatotokyo .
that is a point. Also, the so heralded "Demographic Aging " trend. I am sure migrants are to carry the Japanese's society's burden. There must be migration pockets/ enclaves in Japan. That would be an interesting subject to bring out to light.
Thx
You should read "The Accidental Superpower", " The Absent Superpower" and "Disunited Nations" by Peter Zeihan.
Don't forget that japan would overtaken the United States before 2000 but of this bubble put an end to it! Iam an Indian but love both India and Japan. 😀
Yakuza zero bring me here
Same
it seems rampant over-speculation in any economic sector among many things is the phantom menace lesson here
Am I missing something? I've never heard "Nikkei" pronounced the way it is on this video 🤔
He just butchered it. It’s pronounced “Neek-Kay”
he's gringo, he doesn't even know how to pronounce Ottawa.
Great video but the background music is a little bit too noisy
Very good. The fact that they have been recovering ever since is a bigger mystery, considering how south Korea and china have taken away huge chunks of Japan's exports.
When you're economy and standard of living gets better you can't mafacturer thing at a price consumers are willing to play. It's the same reason Australia, US and most of the Europe don't have mafacturering as a large industry (unless it's heavily automated = no one to pay wages to). China deals with this by artificially deflating the currency or running government owned companies or outsourcing to Africa or buying up African assets though defaulting loans (that realistically African governments or companies could never afford to pay back).
Where can I get the background music used in this video? Or what is the name? Link?
Robert Lighthizer was involved heavily in the negotiations of the plaza accords.
Someone can put subtitles in japanese?!!! I'm curious what japanese have to talk about the old times of financial crisis's and today international healthy crisis.
The most clear explanation that I've come across of the Japnese bubble. I think it's sort of like a vehicle that is running at an ever increasing speed and there seems to be no simple and effective way to stop it soundly.
Bro the music is so aesthetic anyone got a link?
The one and only leason is dont trust america.... Cause they did all thing to maintain their first spot. The example is the plaza accord. And japan can reject this accord. They were to dependent on the US military..
Options are dont listen to the USA and lose all your export market and military protection, or listen to the USA for promised success while not realizing that Keynesian ecnomices were a failure in the making.
Can you guys please make a video about funded pension plans versus unfunded pension plans PLEASE!!! I SUPPORTED YOU GUYS ON PATREON. FUNDED VS UNFUNDED COUNTRIES PPPLLLEEEASSEEE. If Japan had a funded pension plan in the 50s, 60s, 70s, and 80s, they would have been ok by the time everyone stopped having kids and started retiring.
Thank you so much! Your content is fascinating.
I don't how it happened but I'm from Poland and hellllll... I don't know how you appeared on my list.
THE INTERNET IS HAUNTED
HAppy haLOween
YEEEESSSSSSSS a video about my favourite topic! For more information, watch or read "the princes of the yen" from the excellent book by Richard Werner on Japanese post war economy
Sir,What else would you recommend for any of the Geopolitics situation (s).
@@aryanpandey8280 there's a channel here on UA-cam, search: the Caspian Report, excellent information on geopolitics and diplomacy
That book doesn't mention the plaza accord and is pretty much a conspiracy theory
Richard Werner is a fraud dude.
The US has the same problems today, the difference is the dollar and US economy is backed by oil (the petrodollar) and the world's strongest navy which protects maritime trading routes. If the US economy implodes, the world will experience an even worse economic crisis than today
if you denominate Japanese assets/real estate by a normalized USD, then the fluctuations arent nearly so great. I lived/worked in Japan 1980s thru the bubble. Got my seed capital from that bubble (thank you guys!)....but as for actual Japanese LIFESTYLE....it's not that different before, after, even 30 years later.....just the NUMBERs look extreme cuz we're denominating in a currency that's experienced major exchange rate fluctuation....
=> and NO INFLATION for 20-30 years isnt necessarily a bad thing......nobody else has been ABLE to pull that off....even tho Japan didnt intend it, they got it....
FINALLY I've found a video in which the bubble causes are discussed critically! Bravo! So many crap videos on this topic that sound like an intellectually impaired pre-schooler's interpretation of the information on Wikipedia.
The question is not `can we draw any lessons ` but will we ?