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Latest data gives boost to Japan's war on deflation

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Folks, this isn't even journalism anymore. This is an editorial -- one what could have been written word-for-word by LDP hacks -- and not an article.

It is becoming tiring to see this kind of one-sided drivel masquerading as news.

Let's look at a few passages:

prices inched up 0.6% in November, the country’s best result since August 1998.

"Best"? So inflation is not only unequivocally good, but "the higher the better" is the standard now? I can't tell; maybe the writer is taking Abe's 2% goal as being "good", and so the closer the inflation rate is to that, the "better".

It's hard to understand this when you're a typical Japanese salary earner with money in the bank -- money which is earning 0.1% per year and is thus will be shedding 1.9% of its value every year if the prime minister gets his way. How a prime minister can stay in office while specifically targeting the diligent middle class of his own country to strip wealth away from is a conundrum I can't quite get my mind around. The "benefits" of a one-party state, I suppose.

Every Japanese saver will suffer, while export companies, construction companies, and connected one-percenters will suck away all the benefits. Japanese society had always treated the middle class well compared to the US, UK, and EU, but no longer. Now the rich are taking everything.

This paragraph in particular appears nearly word-for-word in article after article on this site:

While deflation may sound like a good thing for shoppers, it can be bad for growth because falling prices encourage consumers to put off spending, knowing they will pay less for a product if they wait.

Who do they think they're fooling with this nonsense? Is this another case of "repeat a lie long and loudly enough, and people will believe it"?

The byline says only "AFP" and not an author's name, and the only organization I know of with those initials is Agence France Presse. Shame on them. Japan Today should stop carrying this biased drivel which might as well be LDP propaganda. Izvestia and Pravda were more honest than this.

6 ( +6 / -0 )

The prospect of conquering deflation seems well and good at the moment — equities are reacting positively to the news — but the Chicken Little in me still worries about a scenario emerging of rampant inflation beyond the Bank of Japan's control.

For consumers, inflation would mean steeper retail prices and higher interest rates on housing loans. Even worse, it would fuel higher interest rates on Japanese government debt. There is not much leeway in that regard, even a small increase in government bond yields could spark a vicious debt spiral and eventual fiscal insolvency.

Looks to me like it could be time for some BOJ tapering.

3 ( +4 / -1 )

Source of the data? J-Gov? As believable as the labels on food in hotels here...

2 ( +4 / -3 )

All the more reason to buy gold/silver while the prices are artificially suppressed and transfer one"s savings to a better banking area.

1 ( +2 / -1 )

well, if you don't like it and are feeling cheated, just leave!

0 ( +1 / -1 )

"...it can be bad for growth because falling prices encourage consumers to put off spending..."

FALLING prices encourage consumers to put off spending? Really? Generally when prices are lower I buy more, not put off spending.

At any rate, increased spending at present, if any (and not including the hiked up energy costs, etc.), is due to the fact that come April the consumption tax will raise, and people are frantically buying before that, be it weddings or televisions. We'll see how Abenomics truly works come April.

0 ( +5 / -5 )

The Abe administration put emphasis on deflation and growth, it has positioned fiscal consolidation that's challenge (task) over the medium to long term, can not achieve it's goal of financial soundness.The important thing is that working to make the legal mechanism of expenditure management goals as achieved automatically. In order to correct the slack of fiscal discipline, it is high time they start preparing to make a legal mechanism

0 ( +0 / -0 )

Until wages go up, this means nothing. Higher energy bill? Less to spend on other things. Sales tax up? Will stay home more.

-1 ( +3 / -4 )

30 years ago Japan was a power house, miniature products, lots of cash. Now this is done offshore. Huger debt, shrinking population a Government plan to use robots? A purposeful poke in the eye to the biggest trading partner.....outlook is bleak. Tax raise and raise in Government spending canceling the income generated, an obvious failure in education. A known overdue earthquake on the horizon, Mt Fugi building up pressure. The government talked about shifting essential services out of Tokyo.... Any more news on this? No the Government do not care. Deflation is low on the list, there are much bigger systematic problems that resolved will cure the deflation problems.

-1 ( +1 / -2 )

'While deflation may sound like a good thing for shoppers, it can be bad for growth because falling prices encourage consumers to put off spending, knowing they will pay less for a product if they wait.'

This is not true. If I want to eat at a restaurant, if I want to buy a car, go on a trip or take a woman out for ice-cream, I dont postpone any of it simply because I belive the prices of these things will drop by 1% in 365 days from now.

-1 ( +1 / -2 )

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