Thursday May 24, 2012

JAPAN NEWS AND DISCUSSION

Bank of Japan expands lending to fight deflation

Business Mar. 17, 2010 - 01:25PM JST ( 3 )

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goddogMar. 17, 2010 - 02:46PM JST

Sure wish, the price of my mansion would go up.
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brotokyoMar. 17, 2010 - 03:10PM JST

sure wish my salary would go up and the interest paid on the money I have in my bank account would go up, but looks like I must wait out this sustained rise in debt (expanded lending)
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ThonTaddeoMar. 17, 2010 - 10:16PM JST

Don't be fooled by the government: they want inflation so that the value of the massive debts they've created can go down, with the average working stiff paying the bill in the form of a decrease in the purchasing power of our savings. They want people spending as much as possible (and paying consumption taxes on that, with the recipients also paying taxes). I'd rather have the peace of mind of knowing that my money will reatin its value no matter what I do with it.

Inflation is worse than taxation -- high taxes only affect the money you earned in the current year. Inflation destroys the value of all the money you've saved in all previous years.

Goddog, you should be wishing for the exact opposite. If inflation and interest rates rise, the price of real estate goes down; buyers can no longer afford as much, because more of their monthly payments will be eaten up by interest.

Brotokyo, any increases in your salary and increases in interest paid on your salary would be negated by the increases in what you'd be paying for things (and in what your savings could buy) if the government gets the inflation it wants.