Sunday May 27, 2012

JAPAN NEWS AND DISCUSSION

Nobody should raise taxes in the middle of a recession. Eventually we have to raise the consumption tax rate — no question about it. But right now I’d wait.

Quote of the Day Aug. 16, 2011 - 05:02AM JST ( 7 )

Former Vice Finance Minister Eisuke Sakakibara (Washington Post)

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7 Comments

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UtrackAug. 16, 2011 - 07:54AM JST

But there is a lot going on and things like radiation food checkers have to be bought and paid for to keep people safe. I hope the schools get them :

A Japanese firms developing radiation checkers

http://www3.nhk.or.jp/daily/english/15_03.html
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tkoind2Aug. 16, 2011 - 09:50AM JST

Utrack. Focused on radiation are we? The quote is about taxes. And is a wise statement.

Raise taxes during a recession and you reduce spending and put more pressure on consumers. That results in poor sales and profits by companies. That leads to lay offs and salary reductions. That leads to more decline in consumer confidence.

See where this cycle is heading? I wonder if our brilliant leaders here in Japan understand this spiral?
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UtrackAug. 16, 2011 - 10:08AM JST

Utrack. Focused on radiation are we?

Only in the children's lunches and on Peoples plates and spewing out of Daiichi. If the J Govt is going to cover the cost of the cleanup in the no go zone which is what I read whose money do you think they are using? If the taxes are raised it is common sense to know it's to try and repair this nuclear disaster in every way possible.
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UtrackAug. 16, 2011 - 10:16AM JST

It's true J Govt could just print more Yen and devalue the Yen a little bit more if needed. Businesses Exporting to other countries would like that at least and they could pay for the radation checkers to keep the food safe for consumption.
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ExportExpertAug. 16, 2011 - 10:42AM JST

It's fairly easy even for a layman to see that raising taxes will damage the economy more and slow recovery, taxes will need to be increased but once things pick up and the economy is bouncing along.

If Japan was to simply print more yen it would reduce the high price of the yen making exports cheaper, meaning more companies building more factorys, employing more people producing more goods and spending more money, cant see why those in charge dont print more yen it would surely get us out of this dreadful slump and solve the problem of paying for the nuclear cleanup and also help the economy recover faster.

Maybe it's the obvious thing to do thats why they arnt doing it.
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globalwatcherAug. 17, 2011 - 05:41AM JST

Consumption tax hike, yes only to laxuary items such as Gucci bag, fur coat, restaurant bills including liquor something like these items I have mentioned. No tax hike to basic needs such as food, medication and utilities.
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globalwatcherAug. 17, 2011 - 08:17AM JST

t's true J Govt could just print more Yen and devalue the Yen a little bit more if needed

Then how do you solve a sovereign debt problem of Japan that is over 200%, Utrack? This idea of printing more Yen will eventually bankrupt Japan. I am sure you have been aware of the fact Japan is ready to jump off the cliff any moment.