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Revised figures show Japan avoids recession in 3rd quarter

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But the moves, and Abe’s lurch to overhaul Japan’s highly regulated economy, have been slow going as the conservative premier marks his third year in office later this month.

Where is that supposedly "bedrock drilling, leave no stone unturned," 3rd arrow gone?

5 ( +7 / -2 )

Good news, compared to being in technical recession, I guess.

effectively printing money to spur lending.

I don't imagine lending has increased much. The money printing is more to effectively bankroll the government for as long as possible, while praying that economic activity picks up due to a weaker currency.

2 ( +4 / -2 )

Fool's gold.

Capital spending in the big picture is a drop in the ocean for an economy where 60% is fueled by domestic consumption.

Until Japanese companies are prepared to invest in their workforce, in the way in this quarter that they have invested in their business structures, the economy in the long term is not going anywhere.

Clearly Japanese companies are unwilling to do the former and without any legislative prompting from the government or the unions, who are a joke here, things won't change.

2 ( +4 / -2 )

None of this matters. The fact remains that Japan is becoming increasingly unable to service its own debt, which currently stands at 240% of GDP. Supposedly in 'growth', yet 25% of the 2016 fiscal budget has been set aside to service the debt. Job market is disastrous, pay is a joke, health & pension systems on the brink.

What kind of picture does that paint for you?

1 ( +5 / -4 )

Who is actually borrowing money for large purchase items right now as an individual?

Why on earth WOULD you even?

3 ( +3 / -0 )

That downturn spurred the Bank of Japan to sharply increase its already massive bond-buying program—a cornerstone of Abenomics—effectively printing money to spur lending.

But the moves, and Abe’s lurch to overhaul Japan’s highly regulated economy, have been slow going as the conservative premier marks his third year in office later this month.

The usual standard cliches about A) "printing money to spur lending" and B) the need to "overhaul Japan's highly regulated economy". The first is not what is happening, although it is the common Alice in Wonderland fantasy land economist's view of what is happening. The second is an unsubstantiated assertion presented as an established fact, with no evidence ever given as to any causative link between this supposed "over-regulation" and economic growth or lack of it. Evidence-free statements about the failure of non-evidence based policies. Brilliant.

0 ( +5 / -5 )

It appeared that there had even been demonstrations to thank Big Brother for raising the chocolate ration to twenty grammes a week. And only yesterday, he reflected, it had been announced that the ration was to be reduced to twenty grammes a week. Was it possible that they could swallow that, after only twenty-four hours? Yes, they swallowed it.

4 ( +5 / -1 )

Who is actually borrowing money for large purchase items right now as an individual? Why on earth WOULD you even?

If you borrow in yen, it's not such a bad time to do so, with interest on yen loans so low now.

The problem of course is that you need the confidence that you have a means of paying it back. This is the problem for people working in Japan, due to the poor economy, higher future tax burden that awaits and generally pathetic policies being pursued by successive Japanese governments, which inspire little hope that the broader economy might provide individuals with an economic tailwind anytime soon.

But even in a cruddy broader economic environment, some individuals can do well for themselves.

And you WOULD, if you have that individual confidence and for example you want to secure a long-term home for your family to live.

3 ( +4 / -1 )

And just what is the margin for error even in revised GDP stats? And if the revised stats are suddenly so important why do economists and finance boys always seem to take the initial ones so seriously? With Abe's propensity to lean on people to get it right for him what are the chances he did it here? Are the statisticians beyond reproach? I mean, they work for government, right? Gotta keep up the mood, the confidence, at any cost because it is a positive feedback cycle. Or, at least, that is what it is hoped.

1 ( +2 / -1 )

@fxgai

This is the problem for people working in Japan, due to the poor economy, higher future tax burden that awaits and generally pathetic policies being pursued by successive Japanese governments, which inspire little hope that the broader economy might provide individuals with an economic tailwind anytime soon.

Spot on! Also, in my case, almost zero annual signifigant wage increase. Currently, It's like lighting your face on fire and then putting it out with a rake to borrow money now for people like me....

0 ( +1 / -1 )

"The initial data threatened to deal an additional blow to Prime Minister Shinzo Abe ....."

So I do wonder who was asked or ordered (??) to correct those numbers. And who benefits most from this? But hey, it's just a minor difference, no big deal, I assume.

1 ( +2 / -1 )

Japan’s economy grew 0.3% in the July-September quarter, revised data showed Tuesday, just weeks after initial estimates showed that it had fallen into recession, denting Tokyo’s Abenomics growth blitz.

Thank God. And here I was thinking Abenomics was not really working. Silly me. Amazing what dumping 80 trillion yen into the economy can buy. LOL.

0 ( +5 / -5 )

Total BS from Abe, they have obviously moved some expenses to the next quarter to improve the number

4 ( +7 / -3 )

Abe administration has deliberately changed the definition of the consumer price index (CPI) several times to give the people the illusion that Abenomics is working. The word “revised “ should be read “doctored.”

4 ( +6 / -2 )

Shudnt Abe employ housewives for all accounting, economy and budget proposal. Surely ladies come out ideas and proposal much better. Dont you all think housewife make better Finance minister. Pretty logic. Maybe it will be miracle for Japan Economy.

3 ( +3 / -0 )

Also more than the effect of any of Abe's policies, the low price of petroleum has helped Japan's economy.

1 ( +1 / -0 )

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