Current affairs

Soaring Gold Prices Due to U.S.-China Friction and Corona Pandemic【Bad money drives out good money】


Bad money drives out good money

In West Bekasi, where I live, there is a mall called Bekasi Cyber Park where there are many shops selling PC-related equipment, such as ITC Manga Dua in Kota and Ambassador Mall in Kuningan, and unlike Jakarta, Bekasi, which is in the countryside, the shopkeepers are not arrogant and easy to talk to.

On the day of the online seminar, the microphone inside my PC was not recognized, and I was not allowed to participate in the seminar, so I came to buy an external microphone and an earphone jack diverter, but I was almost forced to buy a defective product without a cap.

Among the inventory of goods, it is a reasonable economic activity to protect one's own asset value by keeping good goods of high real value as much as possible and letting go of defective goods of low real value first.

As a result, "Gresham's Law" kicked in, with the result that the good ones were eradicated from the distribution process, and this is the same reasoning behind wanting to use the old, dirty bills in your wallet (partly because your wallet gets dirty and you want to release them quickly).

Selling defective products first or later is the same in terms of revenue flow, but in addition to the fact that the product stock stored in the warehouse will be valued differently, there is also the risk of lost opportunity that a customer coming in tomorrow will leave without buying.

I also exported furniture and goods from Bali and ran a boutique on the island, so I understand how much you want to let go of the defective products as a businessman, and it's natural that the quality of service is higher for patronizing customers than for one-way customers like me, so I don't mind, but I'm just worried that the girl who works at the store will be scolded by the owner later on.

Soaring Gold Prices

With the Chinese consulate in Houston closed on charges of espionage and intellectual property violations in the U.S., and China ordered the U.S. consulate in Chengdu closed in retaliation for this, the price of gold has risen in the midst of what is becoming a cold war between the U.S. and China.

Changes in Gold Prices(世界のネタ帳より)

This year, the global economic stagnation caused by the corona plague has driven "emergency gold buying," but the idea that gold is more trustworthy because it is a real asset with value in its own right has been around for a long time, from the days of the Roman Empire to the post-war IMF system, and the floating exchange rate system, in which the relative value of currencies such as the yen, the dollar and the rupiah is determined by market principles, is not trustworthy in times of emergency.

Since the price of gold has been moving at the level of 1 juta per gram of gold recently, the original meaning of "bad money drives out good money" is to describe the event that if 1 gram of gold coins were in circulation as money, only paper money would be available on the market as a result of the rupiah notes being used first, leaving gold coins on hand in the event of a corona emergency like the current one.

In Japan, it is not customary to use gold to create wealth, but in China, Taiwan, Hong Kong and other Chinese countries, as well as Thailand and Indonesia, physical gold holdings are common, especially among Chinese Indonesians.

In Padang, Sumatra, where my business partner is from, he told me that the biggest risks in protecting property are thieves and fire, because the gold standard of living is still deeply rooted and gold is always kept in the house.



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1

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2

There are few cases of cost accounting (actual cost) business, which calculates how much cost is spent on monthly production, being systematized in Indonesia.

3

In Jakarta, the first section of the MRT metro (15.7 km in total) was officially opened in April 2019, but in June this year, in the midst of the corona pandemic, the 6.3 km from Bendaran HI station in front of Plaza Indonesia, the current starting station, to Kota in North Jakarta, West Construction has begun on the second phase of the 5.2km total length of 11.5km (10 new stations) to Ancol's train depot in Jakarta.

4

The Jokowi administration, which came to power in 2014, is said to be a staunch supporter of China, and in 2015, China and Japan fought for the Jakarta-Bandung High Speed Rail project, which was expected to be introduced under the Japanese bullet train system, but the Indonesian government rejected the Japanese plan and adopted the Chinese plan.

大統領選挙で考えたギャップにハマるということ 5

Jokowi's image of a simple uncle with no selfishness and his strong leadership skills as a pragmatist have won over the gap-loving Indonesians, who see him as an ordinary person at first glance but are actually amazing, and the public seems to be in a state of collective hypnosis.

情報共有 6

The sharing of visible results leads to a common recognition of the problems, but if there are people who are troubled because the scarcity of information is diminished by the increasing sharing, the political power to increase the position by monopolizing useful information is at work.

7

In "The Garuda Merchant," written by Yusuke Fukada, a bible-like novel for Japanese living in Indonesia, there is an account of a senior official of the Indonesian Ministry of Religious Affairs inviting Japanese and Indonesians to his home, in which he writes on the invitation card for Indonesians that the party should start thirty minutes early, on the assumption that they will be late.

宗教によって異なる「死んだらどうなる」の考え方 8

Both Christianity and Islam are religions derived from Judaism and believe in the one and only God, Jesus Christ (God Himself) or Allah, respectively.

株価操作なんてインドネシア株では当たり前 9

Stock prices fluctuate with sell and buy orders, and if you get a lot of sell orders and a lot of buy orders, the other investors will follow suit with "me too" and the stock will go up.

心臓に毛が生えたインドネシア人のずうずうしい転職活動を応援してみた 10

Since many Indonesians can't maintain mental stability without revealing a secret story to someone else.

日系企業のインドネシアでの存在意義 11

If Japan's population continues to decline at the current rate, domestic demand will continue to shrink, and if this happens, it is inevitable that domestic companies that find it difficult to survive in the Japanese domestic market alone will look for ways to make a living in overseas markets.

チャンスはあるが勝てる分野が 12

After living in Indonesia, talking to people on my own, and gradually understanding the local situation, I realized that starting a business in Indonesia is surprisingly difficult. The reason for the difficulty is the high shipping costs and tariffs, the competition from local companies, and the high running costs of IMTA and DPKK.

インドネシアのシステムインテグレーション業界 13

The other day, I had the opportunity to exchange opinions with JETRO (Japan External Trade Organization) about IT investment by Indonesian SMEs, and they raised an important issue related to the existence value of system integrators, such as "How can we explain the cost benefits of system investment?

肉体と精神と心と魂 14

Speaking of "Body and Soul," it's the debut song of SPEED, a member of the LDP's House of Councillors, Eriko Imai, who was unofficially appointed as parliamentary secretary of the Cabinet Office following yesterday's cabinet reshuffle, and the name of a long-established Indonesian women's fashion brand.

ジャカルタのラーメン市場 15

I came to Indonesia for the first time in October 1997. I didn't understand Indonesian, my job was hard, the people around me were unreasonable, and there was a time when I wanted to go back to Japan for a while.

ブランド力、技術力、資金力の3要素 16

After the Jakarta riots of 1998, when the rupiah plummeted and domestic companies with foreign dollar-denominated debt were struggling to pay interest, I was looking for a new business in Indonesia that would allow me to earn foreign currency.

日本とインドネシアの間でのタイムマシン経営が通じなくなっている件 17

I think that Yoshinoya overcame the frame of Japanese food and became Indonesian soul food. I am happy to see the scene where Japanese food culture is accepted by Indonesian people.

サリナデパートとマクドナルド 18

The first McDonald's in Indonesia, Sarinah Department Store, will close after today, May 10.
While Jakarta's shopping malls continue to be modernized with new concepts, the Sarinah department store and the Pasaraya in Block M, which were the staple meeting places for young people when I first arrived in Indonesia more than 20 years ago, have been completely left behind.

不景気の歴史 19

Since I came to Indonesia, I have seen the economic recession several times, but because of the spread of the new coronavirus this time, the economy will definitely go into recession, and in a few years' time it may be called corona shock or corona recession.

日本のバブル経済崩壊後とインドネシアの通貨危機後 20

When I entered university in 1991, at the end of the bubble economy, land and stock prices were exploding, Mitsubishi Estate had bought the Rockefeller Center Building, a symbol of America, and the women of the one-length body-con (like the Bubbly Dance of Tomigaoka High School's dance club) were dancing at Juliana Tokyo in the waterfront bay area, waving their fans.

内需と外需の自国経済に及ぼす影響 21

The situation in Japan is that even if public works investment is made, the money stays in the savings of companies and individuals, and domestic consumption does not increase, while the situation in Indonesia is that even if domestic consumption increases, the ratio of imported consumer materials is high, and domestic assets are flowing out to foreign countries.

2019年の総選挙を前にインドネシア政治史のおさらい 22

As the campaign (Kampanye) for next year's presidential election (Pemilu Pilpres Pileg Indonesia 2019) is lifted, it has been decided that the order in which the ballot papers will be printed will be No. 1 for the incumbent President Jokowi and Vice President Mahuru candidate pair and No. 2 for President Prabowo and Vice President Sandiagauno candidate pair.

インドネシアの国土と風土が生み出す産地特有のコーヒー 23

Located in the coffee belt between the Tropic of Cancer and the Tropic of Cancer, Indonesia is a country suitable for coffee cultivation, and during the 300 years of Dutch colonial rule that followed the advance of the East India Company in 1602, Arabica coffee was brought to the country and cultivation began in the plateau region with a favorable climate.

インドネシア人の悪魔祓い 24

My cousin, who hadn't heard from me in a while, called me late last year in early December with tears in her eyes.

-Current affairs

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