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© Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Japan CPI, consumer outlays falter as Abe loses economy czar
By Elaine Kurtenbach TOKYO©2024 GPlusMedia Inc.
14 Comments
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shonanbb
What are they doing with the surging profits?
Paying of Czars to further increase profits?
Rana Sodhi
Is this new ? Its falling for more than two decades.
smithinjapan
Not to worry -- the choice of "environmental and nuclear crisis minister" will bring about the desired confidence and restore fiscal health to the nation.
sangetsu03
If you subtract deficit-spent public sector "stimulus" (crony project) spending from the "growth" figures, the economy shrank significantly last last year.
Laguna
This! This!
BNlightened
As if one needed yet further proof that Abenomics was nothing more than 20% quantitative easing (non-market stimulated) inflationary monetary gimmicks and 80% pure confidence trick...well...here you go.
I thought I read a lot about how growth and inflation were soon to be revised "upward" for 2015? In fact, it's just the opposite which happened. Abe needs inflation to increase 4 times the present anemic rate just to reach his stated goal of 2% per year, but that's not going to happen (outside the planned tax hike, that is.)
In response to Abe's confidence trick (Abenomics), the Japanese people have basically responded with, "Show me the money!" In the back of their heads, they've suspected all along that Abe was merely an inept cheerleader, trying to get everyone to "feel good" about an ever-deteriorating economic and demographic situation, when they should really be very, very worried about the next few years (not to mention the planned sales tax hike coming up.) Less is the new More here in Japan-get used to "gaman"ing while those at the top plunder and game the system through graft!
Gary Raynor
3 years ago on here me, SmithinJapan and Globalwatcher were saying that Abenomics had no chance of succeeding and it was the usual LDP currency manipulation and pork barrel public spending wrapped in a different coat.
You had JeffLee and Nigelboy defending the future prospects of Abenomics.
Today and yesterday.... Wages went down year on year, consumer spending crashed, CPI after 3 years is a paltry 0.1% and exports crashed by their highest level since 2008.
Meanwhile the Bank of Japan has become the biggest holder of government debt which now stands at 240% of GDP and today Kuroda implemented negative interest rates.
I ask you folks, who was right?
Supey11
Japan just adopted NEGATIVE interest rates. BOJ announced it in the past hour.
So the govenrment will now charge banks -0.1% to save their deposits.
I can only imagine how this will be passed along to the diligent populace who've saved their whole life.
Nessie
As if there were some connection.
Good ol' "post hoc ergo propter hoc" fallacy.
shonanbb
If the Japanese economy is so crappy, why isn't it ¥200 to the dollar? Anyone want to take a guess at that one?
nakanoguy01
well, you had a fifty-fifty chance of being right.
but what do you mean by wages and consumer spending crashing? wages have held steady or slightly increased, and consumer spending was already anemic. but neither of these are a result of abenomics. abenomics created a foundation for modest improvements to the economy. but abenomics misread that japanese companies would be willing to raise wages dramatically. this in turn has made consumers still fearful of spending; therefore eliminating any chances of a virtuous cycle taking hold.
Gary Raynor
nakanoguy01Jan. 29, 2016 - 04:34PM JST
Average incomes fell 2.9% from a year earlier in December
fxgai
Abeonomics did not implement policies that could lead to a competitive business environment, where companies have it in their own individual interests to raise wages.
That was supposed to come in the 3rd arrow, but was never really forthcoming.
Specifically, those Japanese workers who have scored a full-time, life long job would fight tooth-and-nail against any changes that would impact on their vested interests. If stripped of those vested interests, those with labour to supply would suddenly find they need to compete for work rather than just turn up for long hours each day, and companies likewise would have to compete with good wages to get the labour they require.