IMF paper proposes reinforced Abenomics to battle Japan's deflation


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IMF paper proposes reinforced Abenomics to battle Japan's deflation

Are they delusional as well?

Under the new incomes policy, the government would announce a wage inflation guideline, which companies would then need to comply with, or explain publicly why they cannot,

Or explain publicly why they cannot? Nope, no loophole there.

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Japan should set a wage inflation goal of around 3% to try to end low wage growth and induce prices to rise in line with the central bank’s inflation target, International Monetary Fund (IMF) staff said.

Made in Japan goods will become more expensive and can not compete with goods from China, Taiwan and S. Korea in overseas market.

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or explain publicly why they cannot,

How about "As the population is falling by hundreds of thousands of people per year, demand and consumption are decreasing a like amount. And as we still rely on domestic consumption for more than half our sales, the fall in demand and the decrease in revenue means that we cannot raise wages on that basis. Furthermore, as other Asian countries with lower labor costs, weaker currency, and fiercely competitive companies have entered the market, we find that sales of our exports are declining even more quickly than our domestic sales. When combining both of these significant problems, we find it utterly impossible to raise wages. In fact, unless wages or other costs are reduced in all sectors, we will not be able to contain the losses being incurred from our current decline in sales."

The IMF letter is written by economists who have been funded mainly by the public sector since they were students. They have never had to support themselves by participating in the labor force as most of us have. They have never run a shop or store, they have never had to sign the checks going to their employees, suppliers, and the tax man. They have never had to endure the endless struggle of keeping a business going as the economy bounces up and down, facing and dealing with competitors who try to take one7s business, and the constant change in the tastes of consumers. And it seems that they have no idea that it is these shops, stores, and other businesses which employ most of the world, and provide the tax revenue necessary to finance government. They somehow believe that the state is the backbone of the the world's economies, and that businesses could not exist without support of the state.

Once again, the IMF and it's trained-monkey economists have a completely reversed view of reality, they believe that the cart pulls the horse, rather than the other way around. And when the policies they advocate fail, then fail again, and fail a dozen more times, they still cannot allow themselves to believe that they were wrong. Even when these policies make things ever more worse, they still think that they just need to spend a few billion more dollars, euros, or pounds they don't have to somehow make things work.

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More than three years after Abenomics was launched, the world’s third largest economy has stalled, with core consumer prices falling and dampening base wage growth

Prices are falling where ? Not around me, People who are out of touch with the general society, People who have never entered a supermarket talking about falling prices from their cozy offices, who do they think they are fooling. I bought 3 small onions two days ago for 300yen, the cheapest one can get one small apple is 158 yen, spinach is not to be bought but to watch and salivate on, in short veggies, fruits, beef and a whole lot of items increased in prices and still remain high or increasing. Gasoline price remains high and toll also increased as well. I want these out-of-touch so called economies to name me a few of the items that led them to their flawed report.

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