Tokyo Diary # 4

[Dave Farber <farber@cis.upenn.edu>]

Rain, rain, rain and it not even rainy season. Tokyo is fun. People are very nice and we are actually using the bus (in spite of caution). Food while expensive in dollar terms is very good. Especially small "hole in walls" where one can really have fun and eat well. Italian, Indian food is very well done also. Chinese has been less good than the US and much less goood than Hong Kong. Since the Penn Club in NYC has arrangments with the Tokyo American Club we went there and had a lunch of plain US type food. It seemed strange.


I have talked and read about the impact of the Yen increase in value. The belief of the papers and several americans who have lived in Japan for a long while is  the belief that the strong Yen has increased the prestige and power of Japan; that many Japanese firms have refunded large loans in Southern Asia (where many currancies are dollar based) at lower interest rates by paying off in strong Yen. (those Americans who get paid in yen are also retiring US loans). Many off shore manufacturing has gotten cheaper. and more and more stuff is going off shore where the Yen buys a lot more. Also raw materials are cheaper. 


It just is not at all obvious that a strong Yen is bad  for Japan. In fact it may be very good.


Japanese news is paying minor attention to the Yen or the trade issues, the Cult story is much more popular. (The role of the Russian military is rather interesting).  If I see one more picture of the gas attack in the subway, I may throw something at the tube.


My technical activities start in full force next week. So the next report will be more technical that the previous ones.




Dave