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© 2013 AFPJapan reflation facing many hurdles: S&P
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© 2013 AFP
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semperfi
S&P sour tone reflects ,really, the state- of- affairs internationally where economic restructuring required in many developed countries - - - - -however, at least Japan is not facing a fiscal cliff . . .at this moment . . .
JeffLee
at least Japan is not facing a fiscal cliff
Japan fell off its cliff 20 years ago and hasn't been able to climb back up. That's why Abe wants these bold measures. The economy has stagnated all that time, in case you weren't aware.
some14some
However, the hurdles to a policy-induced reflation are many, and they are high.
... unprecedented and unheard of measure in economic growth !
gokai_wo_maneku
I want more deflation! Things here are too expensive. Reflation is strictly for the benefit of the 1%. If their assets don't appreciate, they don't get their free money.
semperfi
semperfi
JeffLee: Fiscal Cliff - Tax increases AND wholesale Goverment spending cuts occur SIMULTANEOUSLY . . . .The up -side is the size of the National Deficit is decreased . . . . The down-side adversely impacts all people, especially the businesss sector , meaning job insecurity . ..........and all of the most respected economists preditct the sudden changes will plunge the country into a deeper recession,
gaijinfo
Partially correct. For the folks within the 1% that got their money through shrewd business and investing, they don't care if it's inflation or deflation, they'll make money. They're good at that kind of thing.
Those within the 1% who got their riches through crony capitalism can go jump off a cliff, for all I care.
Those that truly want inflation are debtors. If you owe money, it's a heck of a lot easier paying it back when it the currency is getting weaker every year, while it's nearly IMPOSSIBLE to pay back if the currency is strengthening year after year.
And guess who owes the MOST money? World governments, that's who.
Which is precisely why we common folk hear the steady drumbeat of "Deflation is bad! Inflation is good!"
Most people don't want to or care to take the time to learn some basic economics (which nobody should have to, btw), and when they hear the same song over and over and over they start to believe it.
Governments don't care about us.(who would LOVE to have steadily decreasing prices year after year after year).
They just want to have an easier time paying back their debt, most of which they got from printing money since they couldn't budget their way out of a paper bag.
They are all criminals, I tell ya, criminals!
JeffLee
@semperfi
I guess you haven't heard about the rises in the consumption tax in Japan? I think it was 3% percent when I got to Japan, and it's slated for 10%. An income tax cut also expired two tax seasons ago, as I recall. Whatever, tax burdens on individuals have been on the rise over the years.
On the spending front, many of the public works projects and other other traditional stimulus projects have been slashed. The bigger gov't budgets have largely been due to healthcare, which isn't stimulus in nature.
So there you have it: higher taxes, less stimulus spending...and no growth as a result. AKA, a "cliff" No, it isn't exactly the same as America's, but safe to call it one, when you consider the consequences.
warnerbro
What Abe has promised is merely more of the same policy that has not been effective over two decades, crony capitalism. It's fiscal pornography, merely providing brief excitement.