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© Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Abe postpones sales tax hike until October 2019
By Mari Yamaguchi TOKYO©2024 GPlusMedia Inc.
21 Comments
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Yubaru
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.
some14some
No surprises ! Positive growth in public debt guaranteed and so is election victory for ruling coalition (!)
Peter Qinghai
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!
Mohits
What ,, Really, Thanks for sharing
sensei258
Just in time for the Olympics, so all those visitors (and many Japanese as well) can leave their money here.
kurisupisu
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!
itsonlyrocknroll
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
fxgai
Abe doesn't want to talk about the risk of Japan's unsustainable debts. Only other risks. Doesn't inspire confidence.
Serrano
"Japan’s faltering economic recovery"
And this is with all these rich Chinese tourists buying stuff in Japan, lol
itsonlyrocknroll
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....
hampton
What does this mean for ten-year minimum pensions? Indefinite postponement?
itsonlyrocknroll
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.
ghoneim mohamed
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:)
gaijinfo
"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.
MsDelicious
What an Ego. He said Abenomics about 50 times.
Yubaru
Halfway of nothing is still nothing.
Frederic Bastiat
Abenomics is an abject failure. Yes, we can say it.
Scrote
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.
Simon Foston
Interesting that he did not specify what those positive results were.
I think you can, as just about everyone does.
sfjp330
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.
Simon Foston
Now I know why he didn't say what the positive results were.