politics

Abe postpones sales tax hike until October 2019

21 Comments
By Mari Yamaguchi

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21 Comments
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He timed his "press-conference" for the 6PM news to get the highest coverage possible, and the local network cut his arse off at 6:20....wind bag.

He tried to make all sorts of excuses about the world economy and what not, but the fact is this....Abenomics is and should be formally announced as being a failure, once and for all.

BUT anyone from within the government who would do that would probably be arrested for divulging state secrets.

1 ( +2 / -1 )

No surprises ! Positive growth in public debt guaranteed and so is election victory for ruling coalition (!)

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So, he finally decided that losing all that "global trust", http://www.japantoday.com/category/politics/view/abe-aide-says-raising-sales-tax-would-win-global-trust#comment_2201810 is better than ... trying ... to fix the economy. Ata boy Abe. Show 'em you've got what it takes!

0 ( +0 / -0 )

What ,, Really, Thanks for sharing

-1 ( +0 / -1 )

Just in time for the Olympics, so all those visitors (and many Japanese as well) can leave their money here.

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The comment

“If a sales tax hike cannot be achieved two and half years later, Japan will be bankrupt,” he said.

sort of says it all doesn't it!

0 ( +1 / -1 )

Cynical electioneering, short term blinkered and politically populist.

My generation will inevitability have to foot the bill. With little prospects for structural reform, the risky shift in investment strategy of government pension funds, the appalling demographics, Japan pop will decline by 27% over the next 40 years. Little progress has been made on agriculture reform with the Trans-Pacific Partnership breathing down its neck.

Japan’s public debt, likely to reach 247% of GDP by the beginning of 2017, reckless and unsustainable. J pension funds cannot hold onto government debt, J 10 T Bonds are trading at negative rates so the central bank already holding 33.8% of the Japanese government bond market (numbers for January) will have to soak up to 50% plus by the end of 2017, near to $10 trillion of public debt, growth has falling behind the mountain of debt even before the proposed stimulus package of another $55billion. Abe san will roll the dice, my opinion is Abe san will dissolve the lower house, make hay whilst the sun shines.

http://data.cnbc.com/quotes/JP10Y-JP

0 ( +1 / -1 )

Abe doesn't want to talk about the risk of Japan's unsustainable debts. Only other risks. Doesn't inspire confidence.

0 ( +0 / -0 )

"Japan’s faltering economic recovery"

And this is with all these rich Chinese tourists buying stuff in Japan, lol

0 ( +1 / -1 )

The ever increasing burden of social security costs is the deal breaker, couple with ....

Government Pension Investment Fund likely lost more than ¥5 trillion last year....

http://www.japantimes.co.jp/news/2016/04/04/business/financial-markets/government-pension-investment-fund-likely-lost-%C2%A55-trillion-last-year/#.V07scORhiMk

The debt dynamics will change significantly....

2 ( +2 / -0 )

What does this mean for ten-year minimum pensions? Indefinite postponement?

0 ( +0 / -0 )

Hi hampton, there is a risk to value, not postponement, it is not quantifiable.

It would be a act of financial naivety not to empathize with the opinion that the negative effect on J economy of a blunt instrument effect of a 2% rise. However this rise could be incremented over a extended period of time coupled with fundamental restructuring and reform. It doesn't need to feel like financially being clouted on the head with a shovel.

Less government, smart methods to relieve the burden for families. It could mean that in times of hardship the more wealthier might need to contribute more I am not a socialist by any stretch of the imagination. This situation needs to be managed with a little more objective practicality.

1 ( +1 / -0 )

Abe hard choice!Actually he did what should be done,though economists and some officials do not agree.Yes,this will degrade Japan economy,with side affects expected,but in any way it will be temporary effects.Postponing consumption tax is a must in such chilly uncertain economic situation,not mainly because of Summer elections.Poor Abe,if he hike tax,he will be criticized and attacked for destroying economy,and if he postpone it,he will be criticized and attacked for working on his favor for Summer elections!!Abe Shinzo,you will never ever satisfy ever angry left wingers simply because as far as you are in the office and LDP leader,they have no chance in any elections.GOOD LUCK ABE SHINZO:)

-2 ( +0 / -2 )

"Will be" bankrupt?

Read any reputable, NON-mainstream economics blog and Japan is considered the canary in the coalmine of the global economy. HIGHEST debt to GDP ratio. They are PRINTING more money then they have bonds. They have the WORST demographics.

The ONLY REASON Abe put this useless thing out in the future is he figures he'll get three more years of power out of the deal. He only wants to NOT BE IN CHARGE before the economy collapses for good.

He's just positioning himself, so when it DOES COLLAPSE (it is mathematically impossible to NOT collapse) he can pretend it wasn't his fault, and he did everything he could.

It's like the Titanic is sinking, he's telling everybody everything's fine just so HE can make it his own liferaft just as the ship sinks under water and kills everybody.

JAPAN HAS NO FUTURE.

Anybody that is forty or under is going to suffer significant hardships in old age.

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What an Ego. He said Abenomics about 50 times.

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Although we are still only halfway there, Abenomics has achieved positive results,” Abe said. “You cannot say Abenomics is a failure.”

Halfway of nothing is still nothing.

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Abenomics is an abject failure. Yes, we can say it.

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Abenomics is definitely a failure, otherwise Dishonest Abe would have been able to increase the consumption tax. Notice how the coward Abe waited until the end of the Diet session before making his announcement so that he could hide from those who might ask him questions.

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“Although we are still only halfway there, Abenomics has achieved positive results,” Abe said.

Interesting that he did not specify what those positive results were.

“You cannot say Abenomics is a failure.”

I think you can, as just about everyone does.

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Simon Foston JUN. 02, 2016 - 03:46PM JST Interesting that he did not specify what those positive results were.

In a short time, Abe government will add large spending package as well, it will reduce the pressure for monetary stimulus.

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In a short time, Abe government will add large spending package as well, it will reduce the pressure for monetary stimulus.

Now I know why he didn't say what the positive results were.

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