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Japan's Pm Says Economy May Need More Stimulus Spending

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http://www.bbc.co.uk/news/business-10876567

Japan's prime minister has suggested the country's economy may need additional stimulus spending.

Naoto Kan said that while the economy was still growing, there was concern about the level of unemployment and the health of the global economy.

The Japanese economy expanded at an annualised rate of 5% between January and March, but economists say the rate of growth has since slowed.

The government passed a $81bn (£51bn) stimulus package back in December.

"Generally speaking, the economy is picking up steadily, but the jobless rate is at a high level and optimism is not warranted about the situation in other countries," said Mr Kan.

"We will closely watch how the economy is performing to decide whether we need to take some kind of response."

He added that the government may fund further stimulus measures using current budget reserves.

The government has also said it is concerned about the high value of the yen, which makes its exports more expensive when compared with rivals China and South Korea.

Excellent news yet more stimulus needed.

It's the stimulus recovery.

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http://www.bbc.co.uk/news/business-10876567

Excellent news yet more stimulus needed.

It's the stimulus recovery.

You would think the Japanese would have learned by now with the national debt 200% of GDP. More stimulus, they have been trying to Stimulate and Print for two decades and have achieved very little. They are still not over the late 80's asset bubble.

The economy is being sucked dry by a circle of Savers buying government debt and it being wasted on stimulus spending. This will not be broken until Japanese consumers spend the cash themselves rather than saving with the government at 0.1% Interest.

They need to restructure the economy so the massive Japanese export machine is matched with a confident spending Japanese consumer. A change in culture is needed.

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Or a 30% Yen devaluation as touted by the Japanese Democratic Party.

But maybe not for the next few months. Maybe we'll see 75 Yen to the Dollar by October?

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You would think the Japanese would have learned by now with the national debt 200% of GDP. More stimulus, they have been trying to Stimulate and Print for two decades and have achieved very little. They are still not over the late 80's asset bubble.

The economy is being sucked dry by a circle of Savers buying government debt and it being wasted on stimulus spending. This will not be broken until Japanese consumers spend the cash themselves rather than saving with the government at 0.1% Interest.

They need to restructure the economy so the massive Japanese export machine is matched with a confident spending Japanese consumer. A change in culture is needed.

Unlikely pensions in Japan are terrible and there is forced retirement at 60 so Japanese people spent 5 years unemployed to spend their savings. Japanese people I know by the time they are 35 have 100-200K in the bank and will talk quite openly about it.

The Salariman was also a myth as they were pushed out at 40ish when the company had no use for them with no pension. Thus people are massively incentivised to save for rainy days and in Japan the almost total lack of welfare is one of their competitive edges.

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'Madness is taking all your clothes off, puting your knickers on your head and running around town.......

...with a pencil up each nostril, muttering the word "Wibble" repeatedly'.

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We're talking 100 billion USD shots of stimulus and they are slowing the acceleration of the deflation.

They will have to start using like 500 billion USD shots to really get somewhere(10% of gdp shots). You guys don't appreciate how big the deflation monster is.

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Japan is a fly waiting for a windscreen :unsure:

well yeah but I'll do the Japan compared to Britain thing.

Britain's 'wealth' is the hypothetical value of houses (4 trillion?) set against 2.5 trillion (probably real!) debt.

Hypothetical set against real. (a confidence trick but it work as long as there are enough believers it works)

Japan's wealth is based on savings and the ability to make real stuff vs mainly government debt. 'Real wealth set against real debt.

So, for Britain the windscreen has about a mile down the motorway from the fly.

For Japan the windscreen is now on a car being shipped out of Kobe.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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