Abe defends BOJ's policy

By Leika Kihara and Stanley White

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The BOJ has blamed falling oil prices and the Japanese public's sticky deflationary mindset for delaying achievement of its price target.

Yeah, right. Cutting workers' salaries year after year - which is what Japanese employers did -- for over a decade after the bubble burst is what created and established the "deflationary mindset." And now, we're trapped, because the same companies are choosing to hoard the windfall of the highest corporate profits in the nation's history rather than pay substantial raises despite a severe labor short.

Why are the pundits so reluctant to put blame where blame is due? I guess they're employed by the same billionaires who are the real culprits.

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"What's most important is what is happening to the economy as a result of the BOJ's target, which is that more jobs were created,"

Wow! Normally I am Abe's biggest critic, but on this specific point he is at least partially correct: it is indeed a good thing that jobs were created. I don't think this job creation is specifically a result of the BOJ's inflation target; I think it happened in spite of that, but it is heartening to see an LDP politician move away from the nonsensical, working-class-destroying "inflation-is-good" propaganda that they and the BOJ have been foisting on us for the last six years.

I still can't believe that the BOJ is claiming that falling oil prices can be anything other than a good thing. Cheap energy is the most important driver of economic growth. Yet Kuroda would prefer to see oil prices skyrocket 2008-style so that consumer prices can also shoot upward and devalue the currency that his country has run up huge debts denominated in. This would be a total disaster for the millions of Japanese people who own bonds and are owed these debts.

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He failed again at one of his stated goals.

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The tax break should have been conditional...given based on improvements in the salaries of the majority of their workers.

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"What's most important is what is happening to the economy as a result of the BOJ's target, which is that more jobs were created," Abe told an opposition lawmaker, who criticized the central bank for failing to drive up inflation.

This statenent shows very very clearly just how out of touch these cronies are. Salaries have decreased, but taxes and prices have increased. Yet, they wonder why there is no inflation? The Japanese economy is doomed and if you have the chance to get out of Japan, do it as quickly as you can before you fall into the save financial ruin as the rest of the country.

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Does really Japan need more jobs?

I thought the labor force was shrinking.

I believe Japan need more higher productivity jobs with higher pay instead.

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When prices increase but wages do not then inflation is not likely.

Kuroda and Abe don’t seem to grasp the most simple economic premise...

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Seems to be defending quite a lot lately, might be time for an overseas trip.

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