business

BOJ chief opens door to stimulus as oil prices drop

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If the economy is 'picking up' (whatever that means) then why is the number of welfare recipients at an all time high? Is that an indication of economic growth in Japan?

1 ( +2 / -1 )

Hey Mr. Genius Kuroda, if you didn't devalue the yen by 50% oil, hence gasoline would be at 70 yen per liter now and diesel at 50 , the economy would pick up on its own. If you dump more stimulus its 150 yen to the USD bingo.

3 ( +3 / -0 )

I believe Japan is the only non-oil producing country in the world where a drop in (completely imported) oil price is seen as bad for the economy (as seen by the government, that is). So to fight this energy discount for consumers, the BOJ must further destroy the yen so that nobody gets to benefit from cheaper energy. But of course, by further devaluing the yen every other import gets more expensive as well, including food (like wheat, coffee, sugar, meat), raw materials (like steel, lumber, rubber) and consumer goods (nearly everything sold by Daiso, Uniqlo, and Yamada). So to 'stimulate the economy' it now means 'make everything more expensive' while not necessarily increasing profits.

I've never once heard of a company increase it's wages because it is forced to sell goods at a higher price just to maintain their current profit margin. Its already happening that people are curbing their shopping since they have less to buy with. This means reduced overall sales, which means reduced profits, which means further reluctance to increase wages. And mind you, it is all happening with a decrease in population (so fewer actual consumers).

This was the policy of Abenomics from the beginning, and the fact that the general public and/or policy makers could not understand and predict such a basic economic equation means that people sadly deserve to have their hard earned bank accounts drained to zero, and then become slaves to Visa and AmEx.

3 ( +3 / -0 )

Once again Kuroda demonstrates that he doesn't understand the difference between cost-push inflation and demand-pull inflation. The man is a quack, and completely unqualified for his position.

-2 ( +2 / -4 )

Yes another dramatic drop in the yen coming shortly. Thank god nobody holds the yen anymore. The world's most pathetic and hated currency. Get paid in foreign currencies,it's the only way.

-3 ( +2 / -5 )

The world's most pathetic and hated currency. Get paid in foreign currencies,it's the only way. Thank god nobody holds the yen anymore.

unless your an Japanese exporter then our sales, profit margins increase with the yens weakness, labour cost , wholesale prices become more competitive against foreign companies. Since we sell 100% Japanese made products our sourcing of these products is substantially cheaper and quicker than the foreign rivals. not everybody likes a strong yen, if you dont like it get a job overseas, the only reason people put money in the yen was it was a safe haven currency, which no country likes. thanks to the BOJ the safe haven currency has moved someplace else

-1 ( +1 / -2 )

Oil prices up, stimulate, oil prices down, stimulate...but as I belong to a younger generation, inflating debts away is a welcome byproduct to correct generational inequality. Perhaps inflation target should be much higher than two percent.

1 ( +1 / -0 )

So if oil prices skyrocket in let's say a year or two and the yen becomes weaker because of more stimulus what will Kuroda do when all prices go up by 10-20%? Tepco will come knocking on the door for another price hike because of high oil prices and a weak yen,shops will increase prices more and the consumers will spend less,great!!

I already pay 10% more for food and my taxes and insurances cost me more than a year ago.And by the way, gasoline isn't very cheap,it's 30-40% higher than less than 10 years ago.Because it doubled in the past 10 years and it came down a bit doesn't mean it is CHEAP!

-1 ( +0 / -1 )

japan is getting close to 6 trillion good

-1 ( +0 / -1 )

That might be the most stupid and most idiotic comment ever on Japan Today, and that is really saying something.

No, don't be shy. Your comments certainly take that cake.

0 ( +0 / -0 )

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