LDP to scrap budget spending limit, launch Y10 tril package

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  • 7

    some14some

    Japanese Investors, Manufacturers, Realtors....to share the first Jackpot. Consumers, workers conditions remain unchanged and likely to worsen in coming months.

  • 15

    SquidBert

    If Noda had tried to pull that stunt, LDP and their henchmen would have been screaming bloody murder, stop wasting our tax money.

  • 7

    MeanRingo

    They're back!!!

  • -9

    alliswellinjapan

    Concept makes sense regardless of what credit agencies will say (which is their job). Only that J-gov really needs to be longsighted wise investors.

  • -1

    Debucho

    Japanese Investors, Manufacturers, Realtors....to share the first Jackpot. Consumers, workers conditions remain unchanged and likely to worsen in coming months.

    You are forgetting the people who work for Japan's investors, manufacturers and realtors. They also will share the jackpot and put their income back into the economy. That will be a huge enema for this economy.

  • 4

    wackness

    It's much easier to skim off the top this way.

    Gentlemen, to evil! clink

  • 17

    zichi

    The new LDP gov't will be built on active fault lines.

  • 5

    BernieK

    Zichi, you rock!

    Anyways, Japan has defaulted on their debts in 1942. They were dishonorable.

  • 11

    zichi

    It'll be like Vermeer's famous painting. "The Milk Maid" but the cream will be going to the fat cats in business.

  • 4

    cornbread1

    Seems like back to LDP shenanigans--building bridges, dams, and roads that lead to no where and hardly used. Same old tune like a broken record...only this time, it could all tilt with the debts are record levels.

  • 11

    JonathanJo

    If they're going to spend on infrastructure, perhaps tunnel roofs would be a good place to start.

  • 0

    herefornow

    The Liberal Democratic Party led by Shinzo Abe will ditch the current spending limit so it can pay for the whopping stimulus,

    Kinda interesting that the "conservative"/pro-busness party in Japan, the LDP, is 100% for spending money like drunken sailors, but in the U.S. it is the opposite. Anyway, this stimulus, and the 2013 budget, which is likely to have a record deficit and amount of bond issuance, along with the BOJ going on a spending spree, better work or Japan's economy could be sunk for good. Pushing debt to over 250% of GDP, which is almost certain to happen, will be a disaster unless it delivers the 3% growth Abe has promised. And with Europe still in the dumps, and relations with China very strained, to say the least, he is definitely rolling the dice, since the pressure will still be on exports. Gonna be an interesting 2013 for sure.

  • 3

    koiwaicoffee

    It's back to the 60s! They are going to follow the same system PLD has been using forever, they apparently don't know any other way.

    But worst than this decision is how it will be implemented. That money is not going to be well-spent, going to the same old pals, and business. All these construction companies are going to build again bridges and roads where are not needed, lots of old guys will keep getting their hefty salaries for working nothing, etc.

    Problem is no matter how long you want to keep these companies working the old way, it's not 1970 anymore!

  • 0

    koiwaicoffee

    Will the interest rate rise?

  • 1

    sikdjgugu

    the economy has been failing under this "don't spend money" policy over the last few years. why not give abe a chance to change that tune? extra stimulus will deflate the yen which will help japanese exports be more competitive in the world market. infrastructure spending is a positive thing, it benefits all. personally i would like to see a HUGE chunk of that stimulus go towards education as i'm a strong believer in investing in the future generation but hey, let's start here and see what happens. japan will lift itself out of the current recession and move towards the right direction within a year's time. after all, he just dominated the last election and the majority of the japanese people have spoken!

  • -1

    jeff198527

    Over $1 billion enters Japan daily. It's not in danger of bankruptcy.

  • -9

    jeff198527

    Are all left-wingers paranoid. You all act like every single corporation and central government is out to destroy everyone and everything. lol, What a bunch of psychos you all are.

    The government has to step in until the world economy recovers.

  • 3

    proxy

    @sikdjgugu Infrastructure spending in Japan is negative and drags down productivity. The country is "built out," no more roads or bridges are needed. The population is falling so there is no need to build anything new as the current road system will be experiencing a drop in demand. Construction will back up traffic and create congestion that will add hours and hours to road trips from delivery trucks to commuters. Logistic companies will suffer a loss of productivity and office workers will have to leave home earlier, arrive home later and have less time to spend their money in the real economy.

  • -4

    jeff198527

    The US declared partial bankruptcies in 1790, 1933, and 1971. And Japan may not be built out. Trust what you see, not what you read.

  • 0

    LostinNagoya

    Ok. 10 trillion yen, paid in the form of a raise in the consumer tax from 5% to 10%, errr, no...15%?...no!....20%?...the sky is the limit for LDP.

  • 3

    blue_monday

    Japan’s rapidly aging society means an increasing number of pensioners need to be supported by a dwindling workforce and a shrinking tax base.

    It is also an opportunity to cut the number of people twiddling their thumbs on the public payroll in city offices all over the country.

  • -5

    nigelboy

    "but in the U.S. it is the opposite"

    Somebody needs to Google "Obama public infrastructure" me thinks. But hey, when U.S. builds it, the roads actually go somewhere and the net stimulus works because they can do no wrong. (sarcasm)

    But in this case, if anyone had actually read the LDP/Komeito proposal in Spring, the term used were 防災/減災 (disaster prevention/reduction) public works in response to the 3/11 and the aging infrastructure.

    http://www.komei.or.jp/news/detail/20120604_8254

    Then the tunnel accident when DPJ's Maehara was boasting about how their cabinet was able to reduce public work construction works by 30 percent.

    Chalk another for why DPJ list so badly.

  • 2

    GW

    This is fracked on soo many levels! If abe does this 30-40% of the total will be pilfered & wasted, the rest of extremely dubious use/need! We have seen this again & again it just makes us poorer & more in debt.

    I have mentioned this before but if Japan is going to waste $$$$ it shud give this printed $$$ DIRECTLY to people/families, NOT to Japan INC!!!!

    Then we can use as we see fit, by all means tell us we have to use it in 2013 but give it to US NOT to Japan STINK if you actually want the economy boosted!

    My bet is abe is doing all this #$@% because he wants the yen to weaken, I shud have converted more befrore the election, damn!

  • 1

    sengoku38

    Japan has too much debt already, so the only option is to make the yen totally worthless through devaluation. We'll start seeing 1,000,000 yen notes soon, I think. Unfortunately, wages won't increase with inflation and food prices.

  • 2

    Little Boots

    Please correct me if I am wrong, but didn't the U.S. try this "stimulus" already twice? It hasn't really worked out for America so far; look at the state of the economy there. Japan may be on a very slippery slope.

  • 2

    SushiSake3

    Ooh, could I have a Road To Nowhere to my town in Tokyo? 

    Roads To Nowhere rock! Construction dudes get jobs, konbenis and local restaurants get business for years, I get a new road - all good!

    Japan needs more Roads To Nowhere, not less. :-)

  • 0

    RowanM

    Lemme get this straight, they're thinking about having unlimited spending AND scrapping the tax increase?

    And @little boots Most of the stimulus efforts were found to be quite successful and have recovered a lot of the money spent. There are plenty of people who feel like the stimulus budgets were the only thing that kept the US from a real depression, and the problem was that there wasn't ENOUGH stimulus.
    Look at the differences between America and Europe right now. One major difference is that US did stimulus and Europe did austerity. Just because things aren't all better doesn't mean things wouldn't have been worse.

  • -1

    Nessie

    Raise the consumption tax to reduce the debt. Increase spending to increase the debt. Rinse, repeat.

  • 2

    bajhista65

    LDP is back. The party that created the Bubble Economy and the same party that burst the bubble. har...har..har..

  • 1

    Yubaru

    In the long run the money being spent will be provided for by the Japanese people themselves lending their own cash to their government.

    Comparisons to the US are misplaced as I see it, because of the difference of where the money comes from. When the US issues bonds to cover it's debt, foreign countries including Japan and China are there to scoop them up. Here though it's the people for the most part doing the buying.

  • 1

    rowiko68

    They certainly didn't waste any time!

    I guess with the further increase of public debt, another rating downgrade is already on the horizon. And I wonder how much of those 10 trillion will actually be spent on meaningful infrastructure, rather than on roads, bridges and dams that no one needs...

    Certainly the construction industry will boom with this, but what about the rest of the country???

  • 1

    Disillusioned

    So, within the first week they are already raiding the coffer. New cars for all the LDP coming up.

    The economic policies of these cronies are seriously flawed and will only result in increasing the debt, raising inflation and generally screwing the middle class. Oh, hang on! That is what they have been doing for near-on fifty years now.

  • -1

    moomoochoo

    Whoaaa Déjà vu !

  • 2

    Dennis Bauer

    Lets print some money!

  • -1

    danalawton1@yahoo.com

    Me... I'm quite happy the LDP is back on a spending spree. I just moved back to the USA and hopefully the Yen will depreciate back to around Y130 to the Dollar. It will make my trips to Japan much less expensive!

  • 1

    Scrote

    Y10 trillion means an additional debt of Y125000 for every person of working age. I wonder how much of that will end up as bribes / payments to gangsters?

    The LDP have tried spending huge sums on public waste projects over and over again and it has never worked to provide anything more than a temporary stimulus. It's like they only have one policy, they know it doesn't work, but they keep on doing it and the people keep voting for it. It's very curious, to say the least.

  • 0

    wtfjapan

    yep totally agree, the LDP should phase out nuclear spending, the future will be financially radioactive for the average citizen. ive got my iodine escape capsules ready for when the heat is too much.

  • -3

    CVHuan

    @Scrote. Well that is democracy for you. The Japanese people have elected the LDP by a big margin. Democracy is always always wise as compared to other political systems. We should trust in the people's verdict when it comes to the democratically elected party. Believe in the LDP this time please.

  • 0

    Yubaru

    Well that is democracy for you. The Japanese people have elected the LDP by a big margin. Democracy is always always wise as compared to other political systems. We should trust in the people's verdict when it comes to the democratically elected party. Believe in the LDP this time please.

    Yes it's a democracy, but the people voted for the LDP not because they figured they were any better really. They voted for them because there really were no other options available to them.........better the devil you know than the one you don't....meaning anyone rather than the DPJ.

  • 1

    Mike Bird

    More borrowing putting the country further into debt????

  • -1

    PT24881

    The "miracle" package claimed to be sourced from last fiscal year's surplus ( ? ) & from a reserve fund for bond repayment ( if the LDP milks money from such reserve, what buffer is left for repayment ? ).

    The DPJ has been begging for financing or else not able to pay bills by month end.. The LDP's magic touch is admirably having a higher hand. Viva LDP !

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