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Nominee for BOJ governor says monetary easing policies appropriate

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Japan has two choices (as explained by Fujimaki, former branch manager of JP Morgan in Japan).

Raise the interest rates to abolish the Yield Curve Control. Japan has to service its debt obligations but it can't. It will default, and every global credit rating agency will rate Japan as junk. No one will lend money to Japanese and Japanese businesses globally. In fact, Big 3 Credit Rating agencies warned Japan that the abolition of YCC will immediately see the country dropping to the speculative status. The Yen will enter hyperinflation as it is unworthy globally. Something like 1 USD = 500 Yen will happen overnight in this scenario.

Keep the interest rates low to maintain the YCC. The Yen will naturally depreciate, and Japan's purchasing power continues to weaken. However, the weakening of the Yen will not be rapid but extending for a short period of years. Instead of 1 USD = 500 Yen overnight, we will probably see it happening in a period of fewer than 10 years.

Either choice is suicidal for Japan. There's no way out!!! That's why Ueda was chosen because other Japanese elites prepare to jump out of Japan as soon as the ship starts sinking. He is the "fall man" for the Bank of Japan's decades of catastrophic failures shared with the entire world of Japanese elites.

-6 ( +14 / -20 )

new boss same as the old boss

7 ( +15 / -8 )

That is some garish and worn upholstery. They should refresh and go with something less gaudy.

-5 ( +5 / -10 )

I also believe he will be the 'Fall Guy.'

Someone the 'elites' can blame for their decades of mishandling Japan's economy.

I feel the end game for Japan is much nearer than the government would like you to believe.

-3 ( +6 / -9 )

Somehow not doing very much can lead to a large salary in the higher echelons of Japan-amazing!

-5 ( +5 / -10 )

> @Septim Dynasty

Japan has two choices (as explained by Fujimaki, former branch manager of JP Morgan in Japan).

The problem is Fujimaki has been saying the same thing for over twenty years (hyperinflation, collapse of the JGB market, and the JPY). So, I would take what he says with a pinch of salt. He just wants to sell books and it is easier to do when you make extreme forecasts. I am not saying that the BOJ is not facing a very tough situation though.

1 ( +4 / -3 )

Ueda has a PhD in economics from the Massachusetts Institute of Technology and is seen as a good communicator who prefers cautious reflection over abrupt action.

Economics 'dismal science ' that could validate things like trickle down economics and banker bailouts while the quality of life of the majority of workers declines.

But the QE subsidy for the rich must flow!!

https://www.theguardian.com/business/economics-blog/2016/sep/28/quantitative-easing-qe-pernicious-effects-favour-wealthy-tax-middle-class

1 ( +3 / -2 )

Yes sir, and thank you.

All Japan need is a slight increase in interest rates and put the rest of the country out of business.

1 ( +4 / -3 )

Look, excuse my rudeness and frank observation, however the photo screams Ueda san ,71 has more in common with the furniture than with forging an independent policy agenda that will free business to grow the economy.

Stale, the next in line, I could provide the political background music, holy mother of god more luck than judgement.

His own words reek of a lack of economic reality....

Ueda, 71, an economics professor, told lawmakers that he saw the "continuation of monetary easing as appropriate", warning of high levels of uncertainty in financial markets and the global economy.

"It is necessary to keep monetary easing to support the economy and create an environment where companies can raise wages," he said in his first public address since being nominated by Prime Minister Fumio Kishida.

2 ( +3 / -1 )

If he said anything else he wouldn’t get the job. Whether he will find excuses to do things differently once in post we will have to wait and see.

The problem is that he has no good options as Japan’s economy has been so badly mismanaged as to leave it in such a dire situation that what ever course he takes will cause pain. Damned if he does and damned if he doesn’t!

Economics, despite what economists will tell you, is not a science. It is at best a badly understood art.

When I studied economics there was a standard joke that if you ask 5 economists their opinion you will get 7 contradictory answers!

-1 ( +3 / -4 )

Ueda san, 71 an economies Professor and deserves respect.

So I am astounded, astonished that Ueda san would regurgitate the failed policies of his predecessor, and fail to confront the illusive third arrow.

A independent comprehensive strategy of a top to tail policy, and agenda of sector wide reform restructuring.

Energy, employment, agriculture, education. taxation.

4 ( +4 / -0 )

Now that economic power is leveling out without possibility to ever raise in the long term, why would yen not decrease more or less swiftly ?

Workforce dwindling, social costs skyrocketing, absence of will for technological change and lack of attractivity to foreign talents.

-2 ( +2 / -4 )

The same thinking by the decrepit "economists" is what has gotten Japan into this deep financial pit. Dug so deep they can't get out.

-2 ( +3 / -5 )

If he does something new and it impacts some people negatively, as any economic policy will, he and those who appointed him, would be culpable.

If he does nothing, any negative changes can be blamed on external variables.

That's Japanese politics and economics in a nutshell.

On the plus side, most other nations have been failing so badly for the last few years, that Japan looks stable and pleasant in comparison. Consider: Britain does Brexit and comprehensively trashes its economy. Japan does nothing and doesn't trash its economy. Even if you consider doing nothing to be managed decline, it is still better than the alternatives.

Plus they need their chairs re-upholstering and they really should have the cash to do it. How can you ask Japanese people to go out and spend to support the economy if you won't even put your hand in your pocket, pay a craftsman and sort out your own furniture?

0 ( +0 / -0 )

The problem is Fujimaki has been saying the same thing for over twenty years (hyperinflation, collapse of the JGB market, and the JPY). So, I would take what he says with a pinch of salt. He just wants to sell books and it is easier to do when you make extreme forecasts. I am not saying that the BOJ is not facing a very tough situation though.

I don't believe he is a prophet, but his reasonings are perfectly aligned with what many economists saying to Japan for years. His answers are the eventual results of Japan's economic policies, and it's basically 1+1 = 2. However, there is not yet a date given for his eventual results. That's why Fujimaki's recent statements are more like analytic commentary than an actual prediction.

Fujimaki only sees things in the economic, and financial dimensions. He didn't anticipate the political dimensions of his times, so that's why his predictions in the last 12 years haven't yet materialized until now.

-3 ( +0 / -3 )

Don't point a finger at BOJ. Point a finger at Japanese business and industry which refuses to reorganize, reduce waste and infuse entrepreneurship. Of course some of the blame falls on the Japanese government as well.

2 ( +2 / -0 )

Kudos to newly appointed Ueda who recognizes the danger of going along with the monetary tightening policy of the US Federal Reserve and other central banks. The ilits who own the Bank of Investments and the banking cartel are all in cahoots to usher the world into a digital currency that they can control that is why they are implementing this monetary tightening to divert all funds to the central bank and make cash money unavailable. This is what happened to the banks in America and they in Africa, people can’t get cash because the banks puts them in the central banks where they can get a higher interest for their money rather than providing it for loans to the common people. People are being forced to go digital. It may be convenient, cool, and high tech but digital means programmable- if you are not a compliant citizen or your social credit score is low based on their assessment, you may be cancelled out. This is their way to control the world. Ueda is intelligent enough not to betray Japan to these ilits who want one world govt.

-1 ( +0 / -1 )

Well, the yen is heading back towards being 140, and so you can see how the world see this guy's words and before long we will be back nearing the 150 if he doesn't do what he says he is going to do.

-1 ( +1 / -2 )

RighteousFeb. 24  08:57 pm JST

If someone offers you a very high paying job with young secretaries and travel perks at the age of 71 you just say yes.

Taro is forced out at 60 and live on scraps after that but these morons can steal forever. There should be mandatory retirement age of 60 for all public positions.

0 ( +2 / -2 )

This only reinforced my faith in How useless a PhD can be.

0 ( +0 / -0 )

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