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Japan unveils ¥6.2 tril package to soften impact of Ukraine war

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Japan unveils ¥6.2 tril package to soften impact of Ukraine war....

on Japan Inc. and constituent cronies of the LDP.

The existing program to extend zero-interest loans without collateral will be extended until the end of September, while the government will provide support so smaller firms can pass higher costs on to consumers.

Here small companies; here is money from the struggling taxpayers so you will be able to raise prices on them. We might even have a rise in sales taxes in the future planned!

The LDP governance of a late stage capitalist Japan is almost reaching peak socialism for the rich.

5 ( +15 / -10 )

As the second stage of efforts to support the economy, the government will craft an action plan by June to achieve wealth distribution, the centerpiece of Kishida's agenda to create a new form of capitalism, and unveil specific steps to achieve the goal after the upper house election.

Key, here, is steps to be unveiled after the election. Marketing strategy - - and perhaps a Plan A and a Plan B - - actually may depend on the outcome of the election.

0 ( +3 / -3 )

The govt has never heard of tax cuts!? They would be a heck of a lot easier, more effective and cheaper to administer than this unwieldly spending package.

Subsidizing heavily taxed items like gasoline seems insane.

20 ( +22 / -2 )

So let me get this straight.

Kishida and Kuroda will continue their rhetoric on the rapid fall of the yen while also saying that the BOJ should continue its efforts to reach the 2% inflation target even if that is due not to demand and rising salaries?

What meaningless garbage! The only people that buy that talk are the same people who continue to put these clowns in office.

The falling yen value has had diminishing returns for export companies as most of them have sent their operations abroad. Additionally, it’s not like they invest that money into their workers or newer products that might boost demand. So who is benefiting from these policies? No one. Just a bunch of deluded old men who long for the days before the bubble burst.

12 ( +19 / -7 )

Great ...

Iam being sarcastic.

Japan will cut down all its trees for lumber , increase mining in world unesco nature preserve , release radioactive materials into the fishing area's and no financial assistance for households unless you have children and no foreign tourists or foreign business entries allowed.

What exactly is this announcement supposed to express ?

-7 ( +2 / -9 )

So in order to soften the impact of rising prices, the government will borrow 6.2 trillion yen from the taxpayers to give to the taxpayers who will have to repay that 6.2 trillion with interest? And what about the inflationary effect of diluting the money supply by a further 6.2 trillion yen? America and Europe were pushing toward double-digit inflation before the Russian invasion due to their diluting their currency supplies. Are people really this dumb?

8 ( +13 / -5 )

Prices were already rising before anything happened in Ukraine.

5 ( +12 / -7 )

I just hope that this 6.2 tri. is well spent and for the intended purposes and NOT end up in the pockets of SCAMMERS and THIEVES including some lawmakers.

The last time we had such a package many lawmakers took advantage and end up scamming the system.

4 ( +6 / -2 )

As long as prices at Starbucks don't increase too much.

-12 ( +1 / -13 )

To increase the money coming into the country, isn’t it time to open the borders to take advantage of the weak yen?

7 ( +9 / -2 )

"To help households, the government will keep the price of imported wheat sold by the government at the levels they were before surging due to the Ukraine crisis until September, and assist in more diversified procurement of raw materials, including rare earth elements such as palladium, to curb Japan's dependence on Russia."

If you want to help HOUSEHOLDS which means the citizens of Japan really, you might want to distribute real MONEY directly to the entire family and not a mere ¥50000 to the children of poor parents. Again, the Japanese Government always says one thing however it's all smoke and mirrors.

6 ( +8 / -2 )

"Rising food prices are a big problem for households."

Then get rid of the consumption tax on food. Temporarily if not permanently.

Instant 8% reduction in food expenses.

the government will craft an action plan by June to achieve wealth distribution, the centerpiece of Kishida's agenda to create a new form of capitalism, and unveil specific steps to achieve the goal after the upper house election.

i.e., they will do nothing because they don't care.

5 ( +10 / -5 )

Kishida said currency levels reflect the outcome of economic and monetary policies, expressing hope that the Bank of Japan will continue with its efforts to attain its 2 percent inflation target. "The BOJ has been guiding its policy with the goal of attaining its 2 percent price stability target. I hope (the BOJ) will continue efforts in pursuit of the policy," Kishida said.

Include food & gas in your CPI basket as these 2 categories impact the little people the most and you would be way over 2%. Ask the average Taro on the street if the inflation he experiences is 0.8% as the bs official figures show.

the government will craft an action plan by June to achieve wealth distribution, the centerpiece of Kishida's agenda to create a new form of capitalism,

We can all imagine it.....wealth distribution = to J-Inc and farmers whilst the plebs might get a one off cheque in the mail ( that takes half a year to mail out in 2022 ) for a few man yen if lucky.

Despite higher commodity prices adding upward pressure, core consumer inflation has increased at less than half the pace of the BOJ's 2 percent target."

0.8 % What drivel.

-2 ( +4 / -6 )

completely pointless.

-5 ( +1 / -6 )

if they really wanted to help to people with price hike for food could lower VAT or take VAT for food say for 6 months as same as Poland did.They could do same with fules as could take off 15 or say 20JPY for fuel tax.

instead they have preferred waste money from our taxes for friends and some picked households.completely pointless and unfair to many.

if you read between lines some good connected friends of LDP will get more richer by gov sponsorship...and all of us who will get nothing will be pushed pay more tax to pay all of this...

4 ( +10 / -6 )

> JeffLeeToday  07:19 am JST

The govt has never heard of tax cuts!? They would be a heck of a lot easier, more effective and cheaper to administer than this unwieldly spending package.

a tax cut in this economic environment would just lead to more household savings, unfortunately. people aren't going to spend when their immediate future is so uncertain. hence the mix of cash handouts and subsidies.

-3 ( +1 / -4 )

I know it costs money to print vouchers but at least you know exactly where the voucher funds are going.

Honestly how many people can afford to drive a vehicle much or even eat wheat.

If the Japan government isn't going to provide anything to households of people without children then for gods sake give us a bag of rice or something to make ur feel they actually care for the citizens and residents of Japan.

Even Suga did that !

It's infuriating to see how much assistance is being provided by other nations to its citizens and residents.

Japan want to act like a great provider but can't provide for It's own citizens and residents.

Meanwhile Japan wants to be a superpower of the region but can't even protect its own borders and is under the thumb of the USA war machine and world order dream.

-3 ( +3 / -6 )

Russian oil and gas is now cheap and available. It will seriously uplift our economy. Paying our $billions tax money a month at time during a norovirus pandemic to the demands of the Ukraine Regime is a joke. This money should be spent on Japanese citizens health, education and pensions.

-2 ( +3 / -5 )

That brings of course again more burdens to the average households, not less, while only a very few people might see some short term merits.

6 ( +6 / -0 )

Wow. So we have excessive inflation and the answer is to print more money? These people are totally crazy

8 ( +9 / -1 )

Kishida supported sanctions against Russia knowing well, that he wouldn't be paying for them out of his own pocket. He doesn't feel the pain. YOU do.

1 ( +5 / -4 )

partly blamed on Russia's invasion of Ukraine.

So, NOT the government's own incompetence. I see.

1 ( +6 / -5 )

So, the BOJ and government can't do anything but likely increase interest rates because there is no end in sight to the intentional depreciation of the yen and the consequences of doing so, and we are expected to suck it up, and they are sending this much money to Ukraine while STILL negotiating imports with Russia! Priorities!!

"Heavily indebted Japan has already passed a record 107.60 trillion yen budget for fiscal 2022, putting the restoration of its fiscal health, the worst among major economies, on the back burner, amid what Kishida has called a "double whammy" for the economy of the COVID-19 pandemic and the crisis in Ukraine."

I love how they have "no choice" in all this.

-4 ( +1 / -5 )

They cant increase interest rates. The interest burden on the debt would destroy the budget and economy

1 ( +2 / -1 )

Kicking the can down the road doesn't quite seem to cover it.

Kicking the can into orbit sounds more accurate these days.

1 ( +4 / -3 )

More corporate welfare…..

1 ( +5 / -4 )

@vic.M

Prices were already rising before anything happened in Ukraine.

And the economy was already slowing down before COVID due to an ill-advised 2% VAT raise a few months earlier...But again, everything blamed on outside causes (COVID, Ukraine, Subprime, etc, etc).

-2 ( +2 / -4 )

Japan has given up... don't try to fix anything just hand out cash to people

2 ( +8 / -6 )

Package deal here, package deal there, package deal everywhere! There seems to be endless release of new package deal for every global event that is well-researched, prepared and sent through fax by LDP bureaucrats.

2 ( +4 / -2 )

The key features of the package include ... and support for struggling small and medium-sized companies...

That'll keep the zombie company owners voting for the LDP, then.

0 ( +4 / -4 )

Japan has given up... don't try to fix anything just hand out cash to people

I would like some of that cash too.

-2 ( +2 / -4 )

Prices were already rising before anything happened in Ukraine.

No one wants to hear that, even though it is true. Blaming Putin allows our own leaders to divert blame away from themselves.

Inflation in America was 7.9% (using America’s extremely conservative measurement formulas) before Russia invaded. Indeed, the Russian invasion happened only 60 days ago, which is too recent to have any significant influence on the current rate. In March the rate increased to 8.5%, which it was predicted to reach before the invasion.

Nearly all of the inflation we are feeling now, today, is a result of policies enacted over the last 2 years. When we do begin to feel the real inflationary effects of the war in Ukraine, inflation will jump into double digits. By election season in America, people will be feeling real pain.

2 ( +3 / -1 )

Remove taxes on food. Seriously, taxing food is disgusting. Your earnings are taxed, and then you pay more tax on buying food. WTH?

Governments should not tax food. It's insane.

7 ( +7 / -0 )

The spendthrift waste of other people's (taxpayers') money without consulting the parties affected (no provision for impoverished pensioners?) comes easy to gouging bureaucrats and politicians living above the clouds of the economic hardships blighting the daily lives of so many Japanese.

2 ( +3 / -1 )

Remove taxes on food. Seriously, taxing food is disgusting. Your earnings are taxed, and then you pay more tax on buying food. WTH?"

And the kicker here is that the food prices are not included in inflation calculations in Japan - so Kuroda and the rest of the blue bloods can trot out such nonsense as Japan only has 0.8% inflation according to the latest figures. Morons.

2 ( +7 / -5 )

I bet there will be a good night out in Ginza for the Board of Dentsu once this stimulus gets paid out.

Remember how we can't have affordable daycare because there's not enough money?

4 ( +6 / -2 )

I HATE this government.

Stop treating people like dirt, Kishida, you absolute fossilised moron.

1 ( +6 / -5 )

The last payout of 100,000 yen was 3 years ago for an ordinary resident in Japan.

Don’t expect much this time-a bottle of alcohol (small) or hand wipes maybe?

-3 ( +0 / -3 )

The last payout of 100,000 yen was 3 years ago for an ordinary resident in Japan.

Tell me more of that nice fairy tale. I’ve seen and got physically only 10% of it.

-1 ( +0 / -1 )

I’ve personally seen companies bankrupted by Covid policies in Japan-I got out to escape the idiocy and set up a new business overseas where COVID numbers are no longer news…

-2 ( +2 / -4 )

Prices were already rising before anything happened in Ukraine.

Because of covid. China, Vietnam, and other economic powerhouses have enforced harsh lockdowns that shuttered major factories and broke the global supply chain. Shanghai port, for example, one of the world's major ones, is today shut down , And one in every five container ships worldwide is bow stuck in port, largely because of persisting covid, although increasingly also due to the Russian sanctions.

Add that to the strong economic recovery in the US, and bang, prices go up, up, up. The Biden stimulus jump- started a pandemic-hit economy, but now demand in the US is outstripping crimped global supply.

0 ( +1 / -1 )

A lot of people here seem to have forgotten (or not noticed) shrinkflation which (as far as I noticed) started after the 5 to 8% VAT increase.

We have been getting less for the same money for already quite some time. Nothing to do with Ukraine, Covid, China et all.

Now, not only are we getting less but it will cost even more...Things will get rocky...Hold on to your seats...

-1 ( +3 / -4 )

As long as people live and work they will continue to pay taxes. The government is a business they are the only corporate business that can generate meaningless paper and collect taxes on useless agendas. All it takes is a vote!!!

1 ( +1 / -0 )

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