So, what do you think about Abenomics ?

[SxyxS]

Kasz216 said:

SxyxS said:
this is just part of currency wars =devaluation of own currencys to kick the can a little bit longer down the road before the inevitable collaps(or hyperinflation) happens as a crash systemic/integrated therefore unavoidable
in an interesst-interesst system+fractional banking.

or as voltaire once said
"Paper money eventually returns to its intrensic value=0"

USA are doing the same with QE and Europe will 100% do something similar in the next two years.

I think it was unavoidable for Abe to push the economy and to simulate/stimulate growth and weaken the yen as Japan needs to import a lot energy as the atomic power plants are out of order since fukushima.
A weaker yen should be better in the long run to stay competitiv in the export-business

The huge mistake Abe had made was: he/goverment should have taken controle over Fukushima long ago instead of letting tepco do the job as corporations only do as little as possible when they know there is no profit.

I'd actually say Fukushima and the closing of nuclear plants is a reason why they SHOULDN'T follow abenomics.

They're trying to lower the yen vs the dollar, which has big advantages in making their products cheaper for export, and makes import prices more expensive.

 

HOWEVER, this beomes a hiderance when you import a lot of needs like food... and energy....

and Considering that energy is built in to the price of every product, you'll see energy costs biting into the advantage that infation is supposed to provide in providing cheap goods.

 

don't agree:

At the first view you are right

but looking deeper you will get the opposite:

Strong Yen:=less exports=decining economy=less comsumption=less jobs=job outsourcing=less liquidety=less tax for goverment=more debts(eg unemployment+ social security money): all this has to be paid by the government and in the end all this will be more expensive than to pay 20%+ for imports because of devalued yen.

 

If japan wants to buy cheaper energy they just need to avoid the petro dollar.(right now it is pretty hard to do so as all countries who are/were selling oil without petro dollars(iraq,lybia,syria,iran) have "coinceidentally " lots of trouble with the USA