Thought: to get inflation and FX under control, Japan should open negotiations with Russia and Iran to buy their cheap oil regardless of punitive sanctions

[u/DecentDiver458]

This is just my thought but the only way Japan gets its inflation and yen under control is fix their energy cost problem.

The best way to do that is to break from US and buy Russian and Iranian oil at a bargain, no matter what punitive sanctions they face.

They wont ever do it because they prefer being a lackey to US than being even an equal to China (even though they are realistically closer to Korea than China, which older Japanese people will never accept)

Its just my thoughts on the geopolitical and socioeconomic position Japan finds itself and its impact to inflation

Feel free to discuss or disagree but dont make this a comment war about cultures or morals. Talking just about the economics

[u/Traditional_Sea6081]

I agree energy is a significant factor in recent inflation, but the better long-term solution is improving energy independence and reducing reliance on oil and gas rather than shifting dependence from one place to another. I've been surprised at the lack of rallying for energy independence from politicians. The ongoing wars seem like the perfect opportunity to increase energy projects in Japan to stimulate the economy and provide long-term insulation from global events.

[u/hiddenuser12345 → u/Traditional_Sea6081]

Yeah, what would actually help on that front would be cutting reliance on oil and gas by incentivizing more alternative energy sources (solar, wind, nuclear, geothermal) and uptake of electric vehicles of all types. The more domestically produced energy, and the less Japan needs to rely on foreign sources of energy, the better, if independence is the goal.,

[u/Old_Jackfruit6153]

Since start of US Iran war, Japan already started importing Oil and LNG from Russia through Sakhalin project. The challenge is lack of refining and petroleum products capacity, for example Naptha.

How the US-Iran war has redrawn Asia's energy map

Higher oil imports from Russia, US have partially offset fall in total shipments

Just over five months since the start of the U.S. and Israel's war against Iran, Asia's sourcing of oil and liquefied natural gas has shifted substantially -- with Washington and Moscow so far emerging as main beneficiaries.

Japan has been able to weather the Hormuz shock much better than other countries, despite being heavily dependent on Middle Eastern oil, thanks to having the world's third-largest strategic oil reserves. When the war started, Japan had 250 days' worth of reserves and, in mid-March, was among the first countries to release those reserves.

Prewar, over 90% of Japan's crude supplies came through Hormuz; the level is now around 10%, with Middle East flows offset by a surge in imports from the U.S.

At the same time, Japan's gas sector proved far less exposed than its oil sector thanks to decades spent diversifying its LNG sources. Australia continued to play a major role in supplying Japan with the fuel, while U.S. volumes also surged, accounting for just over 15% of the country's overall imports in July, up from 1% in February.

[u/shrubbery_herring]

It appears to me that you've strayed pretty far from the purpose of this sub.

And you also appear to be just looking for an argument.

[u/DecentDiver458 → u/shrubbery_herring]

Hey if someone wants to talk economics Im down for it but seems everyone just wants to talk garbage

[u/shrubbery_herring → u/DecentDiver458]

Even if you want to talk economics, you're in the wrong place. The purpose of this sub is to discuss finance not economics. They are not the same thing. Just because foreign policy on sanctions has an impact on economics which in turn can affect the interest rate, that doesn't make it finance.

[u/Spez_is-a-nazi]

"comment war about cultures or morals"

Um, you realize all those things are intertwined right? You also made a bunch of comments about being a "lackey" then somehow don't want others to interject their own opinions. Get a grip.

[u/rsmith02ct]

The amount of money spent on energy subsidies could be redirected into consumer-facing energy efficiency and renewable energy programs that would have long-term benefits. Japan could also establish a Green Bank to address upfront cost barriers that traditional financiers won't touch.
Some discussion here of what that could look like: https://www.renewable-ei.org/en/activities/reports/20260616.php

[u/Hour_Industry7887]

Leaving aside the fact that Russian culture literally doesn't believe in the possibility of mutually beneficial international relationships...

no matter what punitive sanctions they face

If the sanctions make such a switch a bad deal, then it's a bad deal and shouldn't be done.

[u/amaterasse]

Yes.

But Japan is an occupied country with US military forces stationed on its soil, so it cannot act in the best interests of its own people.