BOJ board member says Japan can weather sales tax hike

By Stanley White

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The sales tax is only one of many stupid policies which we must "weather". Pretty soon the weather will be so bad no one will be able to go out.

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Morimoto, who is well-insulated from the coming recession and whose days are numbered, has his head so far up the chute that he sees the world around him through his navel as like a periscope.

The rest of the people, however, are about to take a thrashing from this "perfect storm" of utter idiocity directed by Abe. A deep recession is coming soon.

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Morimoto, toeing the party line.

Morimoto, a former utility executive

Ah! Now it all makes sense. 'Nuff said.

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Easy to weather any tax hikes if you are on a BOJ member`s salary...not so easy for the single parents etc. out there...

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What else do you expect a BOJ employee to say? That it has always been a mirage conjured up by Shinzo Abe and Kuroda?

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For those out there that believe the consumption tax increase will lead to a reduction in Japan's natonal debt, please let me interest you in an investment in ocean front property in the state of Arizona in the USA. From the front porch you can see the sea.

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We can't complain about rising sales-tax. Look, there's no two ways about it, Japan needs the fiscal consolidation. (And more than just the sales tax increases.)

The alternative would be a far riskier, higher stakes game of chicken with the financial markets over the sustainability of Japan's finances. If that were to spiral out of control then your Suzuki Taro would be getting it much worse as interest rates rise. The government has to stop spending beyond it's means.

Rather than have interest rates rise, which is more likely to hit younger people who are for example borrowing money to buy homes, it's more appropriate that the older people who've had their chance to save money (and vote for moronic politicians who got them into this mess) pay up through the sales tax increase and also inflation. It's the old people who should bear more responsibility for Japan's mess, not the young ones who are less guilty.

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"A deep recession is coming soon."

Japan has been in recession for most of the past 20 years...except now. So that's really not much of a prediction. Now we have 1.6 percent positive growth. Yet the upturn seems to engender more cynicism and worry than existed back when Japan was actually in the recession dumps with no discernible way of getting out. That mindset makes no sense to me.

"The alternative would be a far riskier, higher stakes game of chicken with the financial markets over the sustainability of Japan's finances."

I don't see why. Japan's massive government spending and monetary policies to date have boosted the stock market, while its bond market is rock solid. The bond auctions -- for world's lowest yielding instruments!! -- are oversubscribed.

Hey, this isn't my opinion: take a look at the charts for yourself.

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