politics

Suga to compile big stimulus package around summer: Nikkei

7 Comments
By Leika Kihara

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ahh elections…

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Slow death of late stage capitalism and the role of fiat currencies in the world economy. Governments and central banks in most developed nations now have no other solution to the worlds economic problems than borrow, print and spend. None of this bodes well for the next decade.

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Opposition parties have called for a package sized around 30 trillion yen ($274 billion), a proposal Suga brushed aside in a debate with their leaders on Wednesday.

While the Nikkei did not report the expected size of the package, some analysts put a ballpark figure of 20-30 trillion yen as it would be enough to fill Japan's output gap - or the estimated size of slack in the economy.

Not having seen the particular's of the opposition's proposal, it probably included needed relief to the public, languishing in a K-shaped "recovery" and that was a no go for Suga.

Got to have enough lying around for subsidies for Japan Inc. donors, pork for the rural base pre-election, and the Olympic fallout before using an election mandate to raise regressive taxes on the public who will be paying the bill for the Olympic boondoggle and pandemic mismanagement!

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Oh, so this is where all the money was during ‘all the stalling’?

“…the government still had money left over from a pool of reserves set aside to meet immediate funding needs to combat the pandemic…

for a last ditch “suck up” before an election!

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Borrow, print and spend. Our financial elites are leading us on the road to ruin.

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Hopefully this will be distributed much more transparently than the last ones, letting huge companies with ties to the government get a big chunk of the money is not something that inspires confidence.

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"But the immediate boost to growth may be limited, as most spending will be for safety nets and steps like digitalization and green investment that take long for the effect to appear."

Well the debt shows up pretty fast as one effect, but indeed still waiting to see positive effects of persistent deficit spending over the last few decades… any day now for sure

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