So, what do you think about Abenomics ?

[RenCutypoison]

SxyxS said:

Kasz216 said:

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

Bolivian energy ? =D