"Tom Sixkiller" wrote in message
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"Tarver Engineering" wrote in message
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"Tom Sixkiller" wrote in message
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"Tarver Engineering" wrote in message
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snip
You're half right; an exchange rate has little or nothing to do with
ability
to pay, but on the comparative worth of two currencies.

Your rescources describe a symptom as the cause, but it is the failure
to
allow imports by both the National Government of Japan and the Japanese
People that is the failure of their reflation plan. If you are going to
loan Yen, then it must be possible allow your borrowerto earn Yen to
repay
the loan; otherwise Yen must be purchased for dollars at the end of term
and
the borrower is bankrupted.

Nice, but that has virtually NOTHING to do with exchange rates.

Buy Yen with dollars, what happens to exchange rates?

Borrow dollars, sell goods for dollars and pay back dollars is possible.
All the Japanese did in their "reflation" was bankrupt their banks and now
they can't afford to write off all the bad paper.