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Dec 20, 2013

“Japan’s economic policy is not as effective as expected.” Money created by Bank of Japan (BOJ) won’t bring about economic recovery unless it is distributed in real economy.

image: VOR
“Japan’s economic policy is not as effective as expected.”  

Money created by Bank of Japan (BOJ) won’t bring about economic recovery unless it is distributed in real economy.

Even if carrying out Abenomics, only bubble business sectors make profits and created money ends up being used for investment. I doubt if most money is being used to help prolong the life of the U.S. government.

It is fine for BOJ to print money. However, distribution of money to bubble business sectors will not bring about economic recovery because it is used for economic casino. To my surprise, the worst Abe administration is going to use the money to construct the casino, which is a place for social intercourse of people who are making profits.

The only word for the administration is an “ultimate fool.” Money created by BOJ won’t bring about economic recovery unless distributed in real economy. Incomprehensibly enough, I have never heard any economists speak about something obvious.

Economic recovery is quite simple. As done in Iceland, exemption from housing loan or distribution of millions of yen to each household is enough for the recovery. This measure is far more effective than Abenomics because personal consumption is sure to rise.
I think how absurd this world is.

Masatoshi Takeshita
December 10, 2013

English translation of the Japanese version of Radio Iran – December 9, 2013 –

“Japan’s economic policy has not produced as great an effect as expected.”

Mr. Lai told at an interview with Press TV about a decline in Japan’s economic growth: “Many economists think that the Japanese government will review its economic growth rate and finally revise it downward.”

Furthermore, “It should be noted that the third quarter of this year has dropped significantly compared with the second quarter. Usually, it is quite difficult for such economy to achieve positive economic growth for two consecutive quarters.

There is concern that economic policy by the Abe administration has not been carried out smoothly as expected,” he said.

He also thinks that the government’s short-term measure to stimulate the economy such as fund injection to the market cannot have a long-term influence on the economy and that it is unlikely that the current economic policy by the government will resolve the Japan’s economic problems in the long run.

English translation of a Japanese article: Nevada blog – December 10, 2013 –

Japan Slides down to Triplet Deficit

Japan is about to face the world’s worst economic and financial situation and has got into the red, though Japan used to attack against the U.S. deficit.

Japan had asked the U.S. to stop the weak dollar policy and strongly urged it to eliminate the twin deficit. However, the shoe is on the other foot now.

Current-account deficit - The first deficit in nine months in October.

Trade deficit - 191.9 billion yen of deficit in October, too (an increase of 640 billion yen compared to one year ago)
Budget deficit

Japan has been in the triplet deficit. From the view point of economics, it will cause competitive deliberation and increase the interest rate, which will result in weakening the economy.

Now Japan is in the world’s worst situation and the yen gradually keeps weakening. Procurement of 70 percent of national debt by the BOJ makes it barely maintain the value. However, nobody knows when national debt will take a nosedive by selling in the market. Most Japanese don’t know about it.

Government bond market is propped up by BOJ and banks. However, once the market goes into selling mode, BOJ will be the only buyer and it cannot prop up the market.

With current-account deficit following trade-deficit, Japan does not have that much time left.

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