Japan facing extended period of low growth

LOL! As is....extended on top of the previous thirty years?!

What a joke, bare of any logic. How can a massive stimulus package that’s underpinning the economy lead to an extended low growth period? But wait, now I have an idea, it’s not underpinning the economy but it’s again only filling the pockets of the few who are more than fine with whatever economic developments.

The rationale for the central bank to stick to ultralow rates is that higher commodity prices are adding downward pressure to the economy because Japan is heavily reliant on energy imports. A weak yen, a byproduct of monetary easing, inflates import costs.

So a stronger yen would counter higher commodity prices then?

But the yen is melting away fast.

Easy to get a return on capital outside Japan now of 4-5%

More money will be sucked out of Japan chasing higher yields and the funds in Japan will run out propping up the yen.

What a dire future is in store…

With shrinking population why does anyone even expect the economy to grow?

Research shows the rich developed economies naturally level off (growth following an S curve) - trying to keep an economy growing infinitely is just insane. We live on a finite planet.

A steady-state economy is the only responsible path of future development.

150 as it was predicted since March this year.

Invest in Russian natural resources, China’s Belt and Road, solar and geothermal green energy, no problem.

Office staff: Kuroda-san, when can we buy a new fax machine?

Kuroda-san: when the yen is 200 yen to the dollar.

Also, foreign workers just can’t make the same wage nor receive conditions that allow the potential for growth as they can in other countries.

How are foreigners treated here is also a cause for concern.

A massively aging population, low birth rates and and a depreciating yen-the perfect storm?

When Japan gets its house in order then it just might be a competitive country again.

@Rodney If the people in China can't get their own savings out of the bank and can't get homes they paid to get built why would any sane person invest in the China Belt Road and Russia well they are going back to pumping gas from a truck on the side of the road. I don't see the logic behind your statement.

Invest in Russian natural resources, China’s Belt and Road, solar and geothermal green energy, no problem.

All the foreign ski resort and hotel staff up in hokkaido who used to make 1500-1800 per hour, their salary is worth like 30% less in their native country. I heard they are having dire times hiring staff to come to work for peanuts. A lot had nice big plans to reopen, but struggling to have adequate staff.

All the world is facing an extended period of low growth..

National debt more than twice the size of the economy? I remmeber hearing that over 10 years ago. Doesn't add up.