Abe ramps up pressure on BOJ


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...AND what if Abe fails to achieve desired results? Abe-nomics will creat an economic turmoil (almost certain).

0 ( +3 / -3 )

Urgh ! If I read the terms 'landslide victory' and 'Abenomics' again ......heaven help me.

5 ( +7 / -2 )

2% inflation is not going to happen, for the same reason deflation was minimal compared to the reality of the market. Inertia!

0 ( +2 / -2 )

Read: Abe style democracy legislating BoJ to rubber stamp his financial policies. Not different from PRC. No?

4 ( +7 / -3 )

A metaphor for Japanese society: the nail that sticks out (BOJ) gets hammered in. Any group or institution that operates independently of "the system" is a threat, in the eyes of Japan's power elite.

-1 ( +2 / -3 )

unfortunately for Japan they dont have much choice but to follow suit, when US Euro are printing mountains of cash & China manipulates its currency to favour its exporters. Japan has to counter these manipulations or they will be sucked dry by all the cheap imports & jobs going overseas.

-1 ( +2 / -3 )

Can someone explain to me how Abe can just waltz in and take over the BOJ even though it is supposed to be independent? Isn't there a law about this? It basically is seizing a company for the profit of the government, no? Where does the line get drawn? Why isn't the public looking at this and thinking WTF?

0 ( +6 / -6 )

if it didn’t get in line with his prescription for rescuing the limp economy: big spending and aggressive monetary easing.

Big spending needs big borrowing. Big borrowing means big debt. Big debt means big interest for borrowing cost. Default is an answer for sky rocketing debt of Japan. Japan current debt is 210% of GDP.

Aggressive monetary easing will promote the short term growth. However it can not be sustainable due to large debt required for boosting growth.

-1 ( +1 / -2 )

Abe will get "his man" to replace Shirakawa ... then it will be easy to manipulate the BOJ. It's mind-boggling just to think about what the outcome will be. Just hope it doesn't result in a monetary meltdown in my pockets ...

2 ( +2 / -0 )

I am not an economist, but to create inflation you need a balance change between demand and offer. At stable offer it means higher demand or let's may more money available for spending.

This can be achieved by salary increase, tax cut, unemployment reduction, women at work, positive demography or confidence in the future. But I do not see anything of that in the Abe's plan.

But inflation can be imported by weakening the currency. Goal reached but at the cost of PIB contraction on the long run.

Monetary easing is a short term tool that has its reason in particular cases. But using it after decades of deflation will never ever do the job of society reforms.

Good luck!

0 ( +0 / -0 )

Not to say that weakening the yen will give a massive argument to restart the NPP due to fossil fuel increase. Knowing the lobbying strength of the Nuke Village I would not be surprise that much actually.

0 ( +0 / -0 )

anybody that think central banks are truely independant from there governments is living a dream, they are appointed by the governements and are all controlled indirectly by them.

0 ( +0 / -0 )

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