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Japan's consumer inflation eases in June

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Japan has the largest public debt of any country. But, whenever it's paid, it's not going offshore. Why? Because most of this debt is owed to Japanese citizens. It's not as if wealth is leaving Japan. It's just moving from one pocket to another. It just redistributes the wealth, unfortunately making the wealthy wealthier.

The trick is for these Japanese citizens to be taxed at a higher rate than citizens who earn less. In short, Japan's public debt can be fixed by a progressive tax rate. So, let's not belabor the point. Japan is freaking rich, and it doesn't have a real debt problem.

Here's more you should know: In 2012, of the $437 billion the Japanese government made in tax revenues, it spent a record $257 billion servicing its debt. By the time $300 billion in spending for social security was added to that figure, the government had spent all of its money before the sun even rose on the first day of its fiscal year. No wonder Japan wants more tax money, but a consumption tax is the wrong answer.

A quarter of a trillion dollars is spent servicing Japan's debt. Again, this is a quarter of a trillion dollars which is given back to the richest Japanese people, meaning those who financed that debt. Instead of a consumer tax on the poor, how about a progressive income tax for the rich, so that this quarter of a trillion dollars is taxed at an appropriate level to bring sanity back to Japan's fiscal house.

Stop talking bonds, which simply transfer the debt into the future. And stop talking about raising interest rates, which will destroy Japan's economic miracle by stopping economic expansion. Why is Japan so short-sighted? Both these methods make the poor poorer.

A progressive tax (for all forms of income) is fair and won't hurt the little man or woman while filling Japan's treasury with the billions of dollars that will pay off the public debt. Once Japan no longer needs to service such a massive debt, those funds will be available to finance Japan's growing military as a real stopgap to China's insane ambitions.

Wulfe N. Straat says so!

-1 ( +0 / -1 )

And those McNuggets are yummy too?

1 ( +1 / -0 )

Hrm, I get Brazil chicken 2kg for 850yen, 10kg rice for 1850yen and more at my local super.

1 ( +2 / -1 )

Last nights news was showing gasoline at 169 down two tenths of a yen, that must be the inflation easing. Chicken is hovering at 100 yen per 100 grams, 80 yen per 100 grams is history. More inflation easing?

1 ( +1 / -0 )

Easing inflation? Nope. Gotta wave the BS(Boy Scout) flag on that lie.

2 ( +3 / -1 )

More smoke and mirrors Abenomics! These clowns really need to be careful. The scenario of a runaway inflation is very real and has the potential to send Japan broke. Their economic policies are false and will not work, simply because the markets they are relying on to lift the economy do not exists anymore. These stone-headed old cronies are living in the past and will run the Japanese economy into the ground.

4 ( +6 / -2 )

Japan's consumer inflation eases in June

manually operated 'forced' inflation...it eases? meaning huge decline in domestic sales have forced retailers (businesses) to reduce the prices slightly. BoJ should not worry so much.

3 ( +4 / -1 )

We expect core inflation excluding tax to fall below 1% in coming months

More corporate mendacity.

3 ( +4 / -1 )

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