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Japan factory output down; inflation slows in November

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Surprise surprise! more expectations and predictions not being met by this government, but the spending goes on.

8 ( +9 / -1 )

People will spend when they have confidence in their future, not out of fear that their money is worth less next year. Btw. most people I know are already living on the edge what they are able to afford, so there doesn't seems a lot of money left to be spent.

So, this inflation talk seems to be aimed at the "money hoarding" older generation?

7 ( +7 / -0 )

The fundamental difference between consumers in EU and Japan is one reaches for the plastic when the well is empty whilst the other diligently belt tightens. It doesn't require yoda like guidance from the force to decipher which cultural behaviors corresponds.

0 ( +1 / -1 )

So, they increased sales tax by 3% and household spending dropped by 2.5%? They reduced corporate tax by 5-10%, but didn't include any legislation to increase salaries? And, the economy continues to deflate due to a lack of public spending? Hey Abe! Do you think these are related? All you have done is, make the rich get richer and the poor get poorer! You can't get blood out of a stone!

7 ( +8 / -1 )

The fundamental difference between consumers in EU and Japan is one reaches for the plastic when the well is empty whilst the other diligently belt tightens.

I am not so sure if this is really the truth anymore. Basically I agree that in Japan people don't live the credit card lifestyle. But still sarakin is common practice. http://en.wikipedia.org/wiki/Sarakin

5 ( +5 / -0 )

This is a surprise? Not to me it's not......

4 ( +4 / -0 )

"So, they increased sales tax by 3% and household spending dropped by 2.5%? They reduced corporate tax by 5-10%, but didn't include any legislation to increase salaries? And, the economy continues to deflate due to a lack of public spending? Hey Abe! Do you think these are related? All you have done is, make the rich get richer and the poor get poorer! You can't get blood out of a stone!"

Come on, man, get a hold of yourself--it's trickling down right now as we live and breathe. In fact, somewhere St. Ronald's golden showers are in cryogenic storage. When the earth gets a wee (wee) bit warmer, it'll surely meltdown all around us.

0 ( +2 / -2 )

Just printing money is not working. nor all the ridiculous "stimulus packages". Maybe try dramatically reducing taxes and stop spending like a drunken samurai.... People might then choose to consume more.....

5 ( +6 / -1 )

What does the term "market forecast" mean in Japan? Is this a euphemism for "guesses made by people who listen to the endless rubbish spouted by Abe, Aso and Kuroda?

1 ( +4 / -3 )

No one with an ounce of sense is surprised. That rules out the politicians, grafters, and Keynesians (pardon the redundancy).

BIG FAT TOLD YOU SO!

2 ( +4 / -2 )

"That rules out .,,,Keynesians"

Other countries that tried austerity are doing much worse, suffering double-digit unemployment, bailouts, large-scale street protests and an outflux of emigrating young people.

"Just printing money is not working. nor all the ridiculous "stimulus packages"."

You need to imagine what would have happened if Japan didn't engage in the stimulus. Look around. Are things in Japan all that bad? Are you seeing desperate poverty at every turn? I'm not. Infrastructure, housing and services are a lot better now than when I first came here.

-5 ( +3 / -8 )

Abe and his crapnomics. What a joke if it wasn't so serious. But whatever abe does the sheeple vote for him so he can do what he likes and the sheeple gaman and shoganai themselves. Plus he has the regular apologist foreigners lapping around him. What can we expect for 2015?? Just don't hold any yen unless you want to throw away your money.

1 ( +4 / -3 )

"Other countries that tried austerity are doing much worse, suffering double-digit unemployment, bailouts, large-scale street protests and an outflux of emigrating young people."

Is there a logical argument anywhere there? Are you referring in any way to what Keynesians feebly allude to as fiscal responsibility? Pfft!

-1 ( +2 / -3 )

"inflation slows"

Great, it's been killing me, especially the rent increase...

2 ( +2 / -0 )

You need to imagine what would have happened if Japan didn't engage in the stimulus.

I for one can imagine what would have happened if Japan didn't engage in the stimulus; there would be a hell of a lot loss public debt in Japan. Sales tax increases could have been avoided and we'd all be just as well off.

2 ( +4 / -2 )

"Is there a logical argument anywhere there?"

If you can't see it, you're blind. There were two fundamental approaches to respond to the low growth right after 2008. Austerity (curtailing public spending to pay down debt) versus stimulus (keynesian style expansion of govt spending and money for stimulus and ignoring the debt).

Some tried austerity, only to see their economies quickly spiral downward. That kinda includes Japan now with the consumption tax hike, a partial austerity measure that tipped Japan into recession, ruining a stimulus-created recovery from late 2013. ("Japan is back" was the mantra at the time)

Others tried stimulus with successes, such as the US right now. Now, basically all countries have switched to the stimulus approach after some hard lessons were learned.

The exception is Russia due to its economy's serious and structural weaknesses and incompetent govt administration. The IMF has also corrected itself, saying its promotion of austerity in past years was wrong, especially after a famous study touted by conservatives and neo-cons promoting the approach was found to be based on false data.

Hope that overview is "rational" enough for "pass the dotchie" John Galt.

-4 ( +1 / -5 )

Again JeffLee nail on the head, wouldn't matter though even if you used crayons and drew simple pictures some still wouldn't be able to grasp it but never mind,

Look at the countries that used austerity right after 2008, Greece, spain etc , look at the countries that used stimulus US is a prime example, now their economy is leaving every one else in its wake, meanwhile Greece n spain are still mired in doldrums.

-2 ( +1 / -3 )

"What's pitiful, Jeff, is that you perceive the Keynesian QE-TWIST as being successful in stimulating the US economy. The US wealth producers have had some limited success, but that is in spite of the FED meddling. The EU is it's own poisoned kettle with the feeble attempts at actual austerity thwarted by the socialist leeches. But, keep on believing in the Abenomics voodoo if you like. The party will be over before long, however."

0 ( +2 / -2 )

"The party will be over before long, however."

The party WAS over in 2008, That was thanks to a greedy and lightly regulated private sector -- like the subprime cowboys and Wall. St. -- who then turned to Obama and Bernanke to fix all the damage.

"The US wealth producers" you mean Walmart and MacDonalds, the biggest private sector employers, who instruct their full time workers to sign up for social assistance while they earn the highest profits in history? Gimme a break, they are the main reason why the govt needs to step in to stimuluate growth, because their pathetically paid workers arent able to spend enough to keep the economy afloat.

-1 ( +1 / -2 )

Why should I buy things I do not need? I am not a fool. My closets are empty, but my lifeis fulfilled.

Peace and Happy New Year

3 ( +3 / -0 )

@warausalesman fair enough reading that link I stand corrected, I do have a fair amount of experience with small business owners and hear about private money lenders but this gives a insight into scale.

-1 ( +0 / -1 )

Jeff, Jeff, Jeff, 2008 was Happy Hour compared to what lies ahead. The main event is still coming. As for the wealth producers, McD and Wal-Mart never entered my mind. Why you bring them up is comical.

0 ( +1 / -1 )

It's cyclical. At one point, people thought even the U.S. would be down forever. Japan will be back up.

0 ( +0 / -0 )

"Why you bring them up is comical."

Because it is America's, not to mention the world's, biggest private-sector employer. That's all.

"2008 was Happy Hour compared to what lies ahead"

The difference between my arguments and yours, is that I point to things that actually happen, while you talk about things that only happen in your imagination.

3 ( +3 / -0 )

Other countries that tried austerity are doing much worse, suffering double-digit unemployment, bailouts, large-scale street protests and an outflux of emigrating young people.

Japan is not seeing double-digit unemployment because the population is decreasing more quickly than jobs are declining. There are not enough young people for large scale emigration, and young Japanese don't speak English well enough or have enough independent spirit to emigrate. But Japanese companies are emigrating as quickly as they can.

The Japanese governemnt is bailng itself out to the tune of $700 billion per year, as I recall.

because their pathetically paid workers arent able to spend enough to keep the economy afloat.

Pathetically uneducated and pathetically unskilled workers tend to get paid pathetic wages. Paying people more to be pathetic encourages more people to become pathetic. I worked for minimum wage when I was young, like most people have, and because I didn't make much money for doing unskilled work, I decided to get an education. In America we have high schools where the drop out rate is more than 50%. Almost 20% of Americans are high school dropouts, and high school dropouts can qualify for only 10% of jobs in the economy. The problem is not companies paying low wages for unskilled work, but an excess of unskilled workers which is driving down wages. When a new Walmart opens, thousands of people apply for a hundred minimum wage jobs. That is not the fault of Walmart or McDonald's, it is society's problem for not keeping people in school, or motivating them to learn a valuable trade or skill.

-1 ( +3 / -4 )

"The Japanese governemnt is bailng itself out to the tune of $700 billion per year, as I recall."

You don't understand the concept of a soverign-style "bailout."

"Pathetically uneducated and pathetically unskilled workers tend to get paid pathetic wages."

Their employer is sitting on a massive cash pile is paying dividends to shareholders, while its full-time workers are forced onto social assistance. This is not an accident of circumstances. Walmart has deliberately created this business model, which is a scandal to taxpayers as well. Do you think it's right for your taxes to be used to subsidize one of the world's wealthiest and greediest companies that's afloat in surplus cash?

Anyway, US higher education participation rate is around 40 percent of young people, among the world's highest. What's more, degrees and diplomas are increasingly becoming specialized for the job market and happen to be the world's most valuable.

0 ( +1 / -1 )

Japan is in its death throes as an advanced economy.A whole new paradigm is needed to manage a country with a large number of elderly.Unfortunately,measures are not being put in place to manage this type of society. Japanese debt, among the world's highest continues to grow. Every year the trade balance worsens,the elderly increase,the population declines. Interest rates on bank accounts are basically zero and Abe wants to wipe out those who have saved their money to support themselves in their old age! At present the Japanese government is monetizing its debt by buying JGBs-they are the only ones to do so. faith in the Japanese system is being lost! Japanese debt cannot and will not be repaid! There will be a Japanese debt default which will crash the economy.

-3 ( +0 / -3 )

This goes to show how little PM Abe, and Abenomics' supporters, know about basic economics. The BOJ, Abe, and the rest of them wanted to spur inflation, and, yet, did everything to prevent inflation from rising.

Higher value-added-taxes (VATs) make goods and services more expensive, thereby, reducing demand for them. Without tax breaks, or cuts, consumers' have even less discretionary income.

Taxes on business are also high. The higher VAT means higher costs for employers, limiting their ability to give pay rises.

The consumption tax should've been left at 5%, and taxes on wages and profits should've been cut. That would've stopped deflation, and given people the means, and the incentive to spend more money.

PM Abe's economic programme should've focused more on international trade, promoting more entrepreneurial ventures, openning the Japanese market up much further to foreign investment.

1 ( +1 / -0 )

@JBinJapan Have to agree with you. Japan is a state where those in power like to exercise a real chokehold on you. As the disaster victims in Fukushima can tell you. The government offered 'vouchers' to the tsunami victims which could be exchanged for white goods-very limited cash handouts. Abe's third arrow will be much of the same.It's imperative for the governors to keep the governed under control no matter what the actual situation is. And for those thinking that Japan won't default?

The National Debt is over 1000000000000000 yen.......(a quadrillion)

0 ( +1 / -1 )

Their employer is sitting on a massive cash pile is paying dividends to shareholders, while its full-time workers are forced onto social assistance. This is not an accident of circumstances. Walmart has deliberately created this business model, which is a scandal to taxpayers as well. Do you think it's right for your taxes to be used to subsidize one of the world's wealthiest and greediest companies that's afloat in surplus cash?

It is their money, they can sit on it sleep on it, burn it, or piss on it. How much money is in your savings account? Shouldn't you be out spending it instead hoarding it for personal reasons? Walmart, like any other business was founded to make money. That is what businesses do. They sell things which people want to buy. If you don't like Walmart, don't shop there. If you don't like what they pay, don't work there. And as for tax subsidies, this is based on workers collecting government benefits because they earn low wages. But on the other side, how much would these workers collect in subsidies if they had no jobs? Signigicantly more, right? as the amount of subsidies increases as wages go lower.

-4 ( +1 / -5 )

"It is their money, they can sit on it sleep on it, burn it, or piss on it."

When taxpayer money is needed to subsidize their employees, then it comes an issue in which taxpayers have a stake as well.

"Walmart, like any other business was founded to make money."

So was the mafia.

"how much would these workers collect in subsidies if they had no jobs?"

If there were no Walmart around, consumer demand for general merchandize like soap and towels wouldn't go away. it would be met by other retailers who pay higher wages, because those retailers wouldn't have the overwhelming scale to exploit and distort the labor market.

2 ( +2 / -0 )

It's not right that Walmart is pulling in tens of billions in profits, while the government needs to subsidize its employees' salaries, because they don't make enough to survive.

1 ( +1 / -0 )

I welcome the revolution.

0 ( +0 / -0 )

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