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BOJ defends stimulus

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a sign it was gearing up to counter mounting criticism that the program has both failed to spur inflation and get the economy out of low gear.

Spot on. Abenomics has not truly hit, or exceeded, any of its stated targets -- after two years. All they can do now is resort to double-speak and moving the goalposts further back. LOL.

although the boost to real gross domestic product (GDP) was small because of the hit to household spending from last year’s sales tax hike, according to the paper.

Coupled with the large increase in prices for foreign goods like food (the yen down 24% versus the dollar). So households got a double whammy.

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Since trickle down economics have long proven to be worse than ineffective as a means to social betterment, as it increases the size of the income and wealth gaps, the BOJ's QE policy can be viewed as a dismal failure, except that it was always meant as part of class warfare and never as a means to improve the economic conditions of most people. So in this sense of social injustice, it has exceeded expectations. Well done!

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Abenomics has not truly hit, or exceeded, any of its stated targets

Actually that's not correct. One of the main goals of Abenomics was a depreciation of the yen against the dollar. The yen went from 80 to 120 to the dollar. I would say they succeeded here. Don't get me wrong, I'm not an avid supporter of Abenomics. Just be careful not to ignore the facts.

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biculturalMay. 02, 2015 - 10:03AM JST

Actually that's not correct. One of the main goals of Abenomics was a depreciation of the yen against the dollar. The yen went from 80 to 120 to the dollar. I would say they succeeded here. .

A very temporary effect because once Japan's stealth currency manipulation 'beggar thy neighbor is seen for what it is, then Japan will be forced to stop it or pay tariff penalties.

And please before anyone says that the BOJ 2013 - 2015 is doing nothing different from the Federal Reserve with its QE. Yes they are. The Federal Reserve bought domestic assets, while the BOJ, by proxy, is buying domestic and foreign assets. By any definition that is currency manipulation.

Kuroda should have never been appointed to the BOJ, his knowledge of the domestic economy was very limited, having spent most of his time at the ADB and in academia. Shirakawa and all the previous heads of the BOJ have been proven right. THE ILLS OF THE JAPANESE ECONOMY ARE STRUCTURAL AND UNTIL THE GOVERNMENT DEALS WITH THEM, THE BOJ CAN DO VERY LITTLE.

Even those who look at the unemployment rate as a positive sign of Abenomics is living in cloud cuckoo land. Even with full employment, because of the weakness and lack of strong organizations to represent the interests of the workers, wages of the majority of the Japanese will not rise significantly. The Japanese are excellent at cost cutting and that's what will happen. Yoshinoya and 7-11 will close with the last train and open with the first. The hourly rate for the workers will increase, but the hours available will decrease; it's a zero sum benefit for the Japanese worker. The same will happen with full time workers. Their hourly rate will increase, but available overtime, which is essential to many workers, will dry up.

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Actually that's not correct. One of the main goals of Abenomics was a depreciation of the yen against the dollar. The yen went from 80 to 120 to the dollar. I would say they succeeded here. Don't get me wrong, I'm not an avid supporter of Abenomics. Just be careful not to ignore the facts.

bicultural --actually, you are not correct. Devaluing the yen was NEVER a stated objective of Abenomics, because doing so would have created major currency manipulation charges against Japan, especially from the U.S. Everyone with even half a brain knew that was an intended outcome, but it was never stated. But, go ahead and prove me wrong.

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The BOJ stimulus programme benefits a scant few, at best. Consumers, squeezed by taxation and rising costs, haven't seen their incomes rise, or their tax burden lowered.

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"jersey"boy, feel free to disagree with wikipedia, which is based on the following article :

Specific policies include inflation targeting at a 2% annual rate, correction of the excessive yen appreciation ...

http://thediplomat.com/2012/12/can-abenomics-save-japans-economy/

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Everyone with even half a brain knew that was an intended outcome, but it was never stated. But, go ahead and prove me wrong. I look at it as a countermeasure to the US $5trillion QE, it was never stated that it was to devalue to $ but anybody with half a brain new that it was. which is also why the G8 never warned Japan of currency manipulation because the US had been doing what Japan was now copying.. now the US QE stopped and interest rates are expected to rise investors are putting there money back into the $. and im sure when Japans QE is finished the yen will rise also. also of mention is the EU has started the QE also. If your going to use QE aka currency manipulation as an economic tool you should complain when others do it also. whats good for the gander is good for the goose

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wtfjapanMay. 02, 2015 - 08:11PM JST

Everyone with even half a brain knew that was an intended outcome, but it was never stated. But, go ahead and prove me wrong. I look at it as a countermeasure to the US $5trillion QE, it was never stated that it was to devalue to $ but anybody

Nooooo, the Federal Reserve and ECB bought/buying domestic assets and commodities. That's QE.

The BOJ, via proxy, are buying/bought, as well as domestic assets and commodities, foreign assets and commodities. That's currency manipulation.

There's a big difference.

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"jersey"boy, feel free to disagree with wikipedia, which is based on the following article :

Specific policies include inflation targeting at a 2% annual rate, correction of the excessive yen appreciation ...

bicultural -- huh? Your quote simply supports what I said. Absolutely, as I stated, everyone knew one of the objectives of Abenomics was to lower the yen, and hence increase exports. But, it was NEVER a stated objective. Can you not grasp the diffference? Which is why in all their updates on the "progress" of Abenomics, it is never mentioned.

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@gary call it what you like, it still has the same desired effect, that lowering the value of whatever currency, US exports picked up while the $ was low, now its returned to pre WFC there repatriation of profits have droped substantially. Chinese do it UK do it US do it EU do it. I find it highly hypocritical when other countries call Japan currency manipulators. which by the way isnt illegal. and no country as of yet , (other than a few vote hungry US senators) have actually labeled Japan one.

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Deficit down, unemployment down. Liberal gaijin fury up!

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Deficit down, unemployment down. Liberal gaijin fury up!

Deficit down, modestly, but debt to GDP still sky high.

http://ieconomics.com/japan-government-debt-to-gdp

Then there's growth.

http://ieconomics.com/japan-gdp-annual-growth-rate

Household spending, and disposable income.

http://ieconomics.com/japan-disposable-personal-income

Too early to be celebrating, or trying to zing people.

By the way, critics of Abenomics aren't all necessarily "liberals".

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