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BOJ ready to do whatever is needed to achieve 2% inflation target

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Kuroda said he discussed the economy after a sales tax increase in April and told Abe that Japan’s economic momentum remains intact.

Dream on!

1 ( +5 / -4 )

2% inflation target

As I have been saying on JT over and over, it will NOT be attainable unless you are willing to do a structural economic reform and improve efficiency in the Public Spending.

You need to cut high paying unproductive politicians and high paying bureaucrats first. You need to make a Public Sector smaller and efficient.

5 ( +6 / -1 )

Print more yen, Structural reforms are still a pipe dream.

2 ( +2 / -0 )

A guaranteed way to increase inflation would be to print Yen and give it to the people. Give everyone Y100000 every month until inflation reaches 2%; it won't take long. But when Kuroda says he will do "whatever is needed" he is lying, as he won't do that.

Anyone who takes pride in devaluing people's savings and salaries is an idiot, and that includes Kuroda.

4 ( +5 / -1 )

But at the moment, the positive cycle in the Japanese economy is continuing.

Whu?

3 ( +3 / -0 )

BOJ monetary easing to Yen, impacts positively the value of the US dollar which, in turn, impacts oil prices(lower prices).

Zaibatsu/Keiretsu are the big beneficiaries. Japanese taxpayers, consumers, regular citzens and their descendants cover the cost of the scheme.

3 ( +3 / -0 )

These idiots think that by saying the economy is recovering that makes it so. Japan is in reality such a hopeless basketcase now. Way out of control debts, a zombie workforce, extremely low birthrate, a vast percentage of elderly parasites, falling population and finally a weak pathetic currency that no one wants to hold now. Hopeless!

To save Japan, a revolution is necessary but can never happen. Too many vested interests in the status quo who will be dead when the titanic finally sinks.

3 ( +5 / -2 )

Scrote,

Anyone who takes pride in devaluing people's savings and salaries is an idiot

Yes, but people are free to diversify their savings out of yen. Very easy and cheap to do these days. I've seen some people complain that they don't want to "play the currency markets", yet being fully invested (saved) in Japanese yen is essentially just such a play.

gaijinfo,

Whu?

Perhaps :) I'd guess Kuroda is looking at unemployment data trends and the stock market, which closed at an 8 month high yesterday. The 2nd quarter GDP number was always going to be bad due to the good first quarter "growth", and so Kuroda is surely looking through the fluctuations. Let's see how the 3rd quarter turns out. Personally I am sure it will be positive quarter over quarter.

-5 ( +0 / -5 )

Perhaps :) I'd guess Kuroda is looking at unemployment data trends and the stock market, which closed at an 8 month high yesterday.

The problem is that the official unmployment numbers are generally pulled out of a hat, and the falling population will prevent much, if any, incresse in unemployment. As for the stock market, it is over-leveraged, the record high yesterday was merely the result of further weakening of the yen. As usual, companies didn't report any improvement in sales or orders. The only positive thing in the current situation is that I am paid in dollars.

-1 ( +2 / -3 )

Anyone who takes pride in devaluing people's savings and salaries is an idiot, and that includes Kuroda.

Right on.

Furthermore, the gap between the Rich and the Poor is widening in Japan. Japan needs to overhaul economic fundamentals for equality.

2 ( +2 / -0 )

Diging and diging and diging...!

2 ( +2 / -0 )

Abe will be remembered for causing stagflation. Forcing inflation without an equal or better amount of disposable income in the pockets of the general population not only prevents current purchases, it eliminates them forever as the consumer has to cut back on all bu essentials to survive. In deflation the purchases are just put on hold until the consumer feels its the right time to buy and prices aren't going much lower. Stagflation will kill what life there is left in the economy. The government is turning a blind eye to the random prices increases over and above the consumption tax rise. Some of which are weakly disguised such as 7 slices of cheese at the same price as 8 prior to the tax hike. We are not all stupid Abe!!! Corporations should not be allowed to control the tax benefits. GIve the average guy a tax holiday for a year or two to ensure they keep buying.

4 ( +4 / -0 )

Pay us to take out loans and then the BOJ will see inflation...

1 ( +1 / -0 )

Inflation would easily hit, if not exceed, the 2% if people could keep more of their hard-earned income. Whatever inflation the BOJ does spur, will not be the result of increased demand for limited goods/services.

“If the economic recovery falters, the government may consider compiling an extra budget to deploy fiscal stimulus and in doing so, it may call on the BOJ to act, too,” said Junko Nishioka, chief Japan economist at RBS Securities

Only an economist can see a recovery in the works. There's no real recovery. Raises offered by many employers are meager, if any are offered.

Deploying "fiscal stimulus" isn't the answers. Spending interest bearing yen, or more of it, just isn't sound fiscal policy.

Cutting taxes on income would quickly deliver the virtuous cycle of consumption the government claims it's striving for. Bring the sales tax back to 5%, and cut income and business taxes. Get out of people's pockets, and off their backs, and the economy will improve.

1 ( +1 / -0 )

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