Japanese Government to Continue to Destroy the Yen and Economy

Already past twenty years of government meddling in the economy, with no good results excepting twenty years of serious deflation - and going on thirty. The Japanese government never learns its lesson and is about to embark on another idiotic attempt at shoring up the economy.

As the BBC reports:

The Japanese parliament is to debate a supplementary budget expected to contain a further 4.6tn yen ($55bn, £35bn) of stimulus measures.
Meanwhile, the Bank of Japan is expected to announce next week further quantitative easing - debt purchases aimed at increasing the money supply.
The moves come as new data shows the economy continues to suffer.
Core consumer prices fell 1% in August, while industrial production fell a surprise 0.3% and car sales fell 4.1%.
However, there were also some positives in a raft of new data released this week.
Unemployment fell unexpectedly to 5.1% in August, from 5.2% a month earlier.
And household spending rose faster than expected, up 1.7% versus a year earlier, compared with an expected 1.4%.
Just a week or so ago, the Japanese government foolishly dumped 2.3 trillion yen into buying dollars to stop the yen from soaring too high in another vain attempt at changing market forces (the yen has been growing steadily stronger since then too!) Now they go and announce another set of stimulus and a return of failed policies.
Isn't there anyone in the government who has any new ideas or the courage to do what's right?


Anonymous said…
What would you do, Mike?
PS: The definition of insanity is to repeat a process and expect a different result. 20 years of this sort of pump priming has gotten us nowhere. See: my blog: "Japan's Two Lost Decades Becoming Three"
Andy "In Japan" said…
I like deflation..it's like having everything on sale. Pay close attention to who get's the government money. The banks, construction contractors, and other pals of the ruling party bosses always get the cash. So money that would otherwise be available for good investments is wasted on non profitable schemes that would never receive a dime if not for government meddling. Solution=close the Bank of Japan, allow private banks to issue their own money (leading to gold or silver backed money) and fire 90% of government workers, maybe 100%. Problem solved, simple.
Excellent Andy! Spoken like a true follower of Austrian economics! Cheers!
salil said…
John Kenneth Albright and Maynard Keynes theories support the idea of tax cuts for the wealthy ......
The trickle down philosophy has a tremendous effect on the G& nations to put their physical infrastructure down the global pipe.....
Graham said…
Sorry, but "right" doesn't win votes...
Graham is correct, unfortunately....

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