politics

BOJ chief says plenty of tools left to ease policy again

18 Comments
By Kaori Kaneko and Yuko Yoshikawa

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18 Comments
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bank has various tools left if it were to ease monetary policy again

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2 ( +3 / -1 )

How is flooding the markets with cheap credit so investors can make huge profits in global asset investments suppose to help put money in the pockets of average workers, who keep seeing their incomes decline under race-to-the bottom, neo-liberal capitalism and transferred through regressive consumption and other taxes into corporate welfare schemes and dying regional communities? Even if the 2% inflation figure is reached, which most experts think is highly unlikely, this is not the demand driven increase that reflects sustained economic growth. It will only part of Abe's Voodoo-nomics, which is intended to mask the continuing class warfare going on in Japan since the 1980s.

3 ( +3 / -0 )

Nothing has worked for 20 years. My suggestion is to cut out the middlemen and allow everyone in Japan to access the 0% loans, that would get me spending.

2 ( +3 / -1 )

plenty of old fools left to ease policy again

0 ( +1 / -1 )

Yet again Japan is the odd man out! In a normal market lower oil prices would spur demand and aid an economy, especially in Japan's case. Large manufacturers might even be tempted to start producing more products here instead of in China. However, Japan is not a normal functioning free market.-things can only get worse.....

2 ( +3 / -1 )

Pump prime the economy by pumping cash into the bottom of the pool, give every citizen 1 million yen that must be spent, if it is not spent within a certain time frame it expires. This cash would naturally flow up through the system being spent over and over again by each recipient business, the govt creams its 8% sales tax each transaction, cash flows freely through the economy ending up at the top.

This is much better than pumping it in at the top where it is only used to buy more shares to further inflate the value of the companies on the share market, the average person never sees any of it that way.

The upper class do not need more cash, the lower class have none, so give them some to spend stimulating the real economy not some false paper crap economy in the share market.

6 ( +7 / -1 )

Kuroda and Abe are the peddlers of Voodoo economics. Printing money, and deficit spending don't incentivise people to go out and spend more money than they already do.

The government and the BOJ can better help the economy by stopping their intervention, and liberalizing the economy. Cut taxes, cut spending, remove impedements to free trade, and free enterprise, and let consumers and businesses help revive the economy.

2 ( +2 / -0 )

Pump prime the economy by pumping cash into the bottom of the pool, give every citizen 1 million yen that must be spent, if it is not spent within a certain time frame it expires. This cash would naturally flow up through the system being spent over and over again by each recipient business, the govt creams its 8% sales tax each transaction, cash flows freely through the economy ending up at the top.

Come StormR now stop making sense, its NOT allowed in Japan!!

0 ( +2 / -2 )

My idea would mean 130,000,000,000yen sloshing around in the economy, generating 8% sales tax for our beloved govt each time it is spent at every transaction, some one do the math on this projecting how many potential transactions ( how many potential 8%'s would be created ) could happen before this money finally reaches the coffers of those who choose to hoard it or tip it into the share market,

I am sure the effect of this type of stimulus would be far greater than throwing it all into the share market only to be wiped out by the next stock market crash created by the greed of those b'stards who enslave us all . They wont do this though because they want everyone on the treadmill for ever.

Time for the revolution.

2 ( +2 / -0 )

It's a fantastic idea but the 'governors' will never throw the governed any meat,only bones....

0 ( +0 / -0 )

Kuroda, a mainstream Keynesian, is following policies advocated by Paul Krugman and others. BoJ is trying to monetize the massive public debt using indefinite QE. It doesn't seem to work but Japanese people don't give up that easily.

Debt consolidation via tax increases is not working in Japan but Abe and his followers will try to tax households as much as they can. They cannot tax corporations for political reasons and they need to keep on subsidizing agricultural sector, again for political reasons.

If monetization policies would not work, Japan would be eventually forced to default (just like Russia or Argentina) or to face hyperinflation (just like Weimar Republic).

0 ( +2 / -2 )

In October, the BOJ unexpectedly expanded the massive stimulus program which it launched in April 2013,

US, PRC and Australia heavily intervened the economy with massive stimulus program back in 2008. In 2015, all nations are heavily indebted and unemployment is keep rising.

Economy likes a wind. It can not be touched. It can not be stopped. It can not be forced. The best thing government could do is changing industrial relation and lowering interest rate.

0 ( +0 / -0 )

Give Jo-Suzuki money? The political and business classes, think about others? Never. They are NEVER in it for the Jo-Suzuki class, ever, never. Look at Japan's history, NEVER anything done for the lower classes; they were fed to the war machine in WWII, were left poisoned and unattended in Minamata, got nothing from the 'Miracle of Post War Japan' not a drop from the bubble and are again left to the winds of contamination in Tohoku, Kanto. The political class, the business class of Japan, care? Give MONEY to Jo-Suzuki?

NEVER. EVER.

1 ( +2 / -1 )

Why not aim for 0%?

Would make much more sense to me.

0 ( +1 / -1 )

Plenty of tools, indeed. Some of the fools are named in the article. And, yes, they are tools of voodoo economics.

Good post LHQM! You tell the truth despite your moniker. ;p

0 ( +0 / -0 )

Responsibility for monetary policy for steering economic recovery lie with the elected government. Attempts to control the economy by proxy via the BOJ are frivolous buck passing. Abe san and the LDP have a mandate and now must stand up and deal with Abernomics restructure and reforming programme head on. The stimulus and QE policy is over. Now is the time for this government to stand up and generate wealth through less governmental institutions and more open market reforms. Transparency of ministerial decision making would ease the political process.

0 ( +0 / -0 )

StormR, congratulations on your idea! Can't you be PM this year??

-1 ( +1 / -2 )

Nice idea Storm. but might be that some sharks would emerge to convince JoSuzuki that his million invested in some form of bond or stock or whatever is the way forward. Because Jo might not have space for a new fridge or washer or want to go and spend the cash on a holiday or a slap up feed at mrs Yamaha's.... and so the cycle of madness continues. answer seems to me is not to tax so much, not to print money and to promote entrepreneurship and (horros) give people access to really low interest cash to start/run their businesses.

0 ( +0 / -0 )

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