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Will Abenomics be good for Japan's economy?

Will Abenomics be good for Japan's economy?

  • Yes

    Votes: 8 25.8%

  • No

    Votes: 16 51.6%

  • Undecided

    Votes: 7 22.6%
  • Total voters
    31
If anyone had ANY doubt that the major world economies (and Japan's in particular) are propped up by central banks...within an hour of the Bank of Japan stating that they will not add stimulus, the Nikkei 225 plummeted almost 800 points.

And the DOW futures fell over 100 points as well.

Forget fundamentals guys and gals...our economies are run by the central banks. Organizations that can do almost anything they want and answer to virtually no one...exactly as the government's like it (no responsibility if they fail).


This will all end in tears.
 
DA60 said:
This will all end in tears.
Click to expand...

actually its been going on for decades and we're all very rich compared to 50 years ago. Care to rethink??
 
If the Nikkei drops just 300 more points (it dropped almost 500 overnight), the Nikkei 225 will be lower then it was on May 17...3 YEARS AGO.

Equity gains was the one thing Abenomics excelled at...and even that has hit a wall.


Abenomics...dumb, dumb, dumb.
 
Ellis_G said:
that's not a real recovery, as it's false,.
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unemployment here is at 4% and GDP is growing at 1-2 % so its not false its just a slow recovery. Japan has been that way for 30 years now so a collapse is not likely.
 
Useless Abenomics is at it again...

japan-core-inflation-rate.png


Japan Core Inflation Rate | 1971-2016 | Data | Chart | Calendar | Forecast

The inflation/currency devaluation they were desperately trying to create to increase exports is backfiring.

Their exports are collapsing along with their brief trade surplus.


japan-exports.png


Japan Exports | 1963-2016 | Data | Chart | Calendar | Forecast | News

japan-balance-of-trade.png


Japan Balance of Trade | 1963-2016 | Data | Chart | Calendar | Forecast


Their retail sales are collapsing

japan-retail-sales-annual.png


Japan Retail Sales YoY | 1971-2016 | Data | Chart | Calendar | Forecast


Their GDP growth keeps dipping in and out of negative territory.

Despite (because of?) MASSIVE government stimulus.

Even their equities are dead...basically flat for over 30 months - again despite gigantic direct stock purchases from the Central Bank of Japan.


When are you Krugmanites going to get the message...Abenomics is a COMPLETE JOKE?

I knew it would be when it came out and it is destroying the Japanese economy.
 
DA60 said:
Their GDP growth keeps dipping in and out of negative territory.

Despite (because of?) MASSIVE government stimulus.
Click to expand...

yes, and the massive govt stimulus into our housing market pre 2007 didn't work well either. There is a pattern here liberals can't grasp.
 
So...does anyone out there now think Abenomics was a good idea?


I don't and I never did:

'Is the debt-fuelled, mega-Keynesian stimulus starting to fade?

IMO, it inevitably will...disastrously so. I believe Japan is on a desperate, rocket powered, market stimulation that will eventually come crashing down as the West continues it's monetary 'Race to the Bottom'.

I typed that over 3 years ago.

http://www.debatepolitics.com/econo...ns-economy-post1061890037.html#post1061890037


It was obvious to me (and many others) that Abenomics was a disastrous idea...and it is starting to become obvious to (almost) all now.
 
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DA60 said:
So...does anyone out there now think Abenomics was a good idea?
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Well yes in the sense that if they had not gotten stupid and liberal about economics we'd be getting buried now by both China and Japan.
 
To answer the question: So far, no ...

Japan is not at all looking good (OECD economic infographics):
EO99JAPAN.PNG

and,
EO99JAP2.PNG


Nominal wages need a real boost for Consumer Spending to relaunch the economy. Howzat?

Some stimulus spending would be necessary, but because Abe is a political-replicant* said spending is likely not to occur. Besides, who cares, corporate profits are "OK".

From the OECD:
Output growth has been slowed by a drop in demand from China and other Asian countries and by sluggish private consumption. Growth is projected to be around 0.7% in 2016 and 0.4% in 2017, as labour and capacity shortages and record-high corporate profits support business investment, employment and wages. The impact of the consumption tax hike planned for 2017 is expected to be partially offset by a pick-up in exports.
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In fact, with the resurgence of demand in China, that 2017 prediction is entirely likely.

*A replicant is a synthetic human with paraphysical capabilities. It is a genetically engineered creature composed entirely of organic substance. For a brain, all its political motivations have been copied entirely from that of Ronald Reagan and programmed accordingly. They have not evolved since; meaning they are anachronisms.
_______________________
 
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Lafayette said:
Some stimulus spending [in Japan] would be necessary,
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they have being doing that for 30 years beyond belief!! What planet have you been on? Thats how they got 30 years of no growth. When you tax the private sector you tax growth and instead get govt growth but govt does not invent things so they cant make an economy grow. 1+1=2.



Krugman: ( uber leftist)
TIME ON THE CROSS: CAN FISCAL STIMULUS SAVE JAPAN?
Japan is currently engaged in the largest peacetime fiscal stimulus in history, with a budget deficit of around 10 percent of GDP. And this stimulus is working in the narrow sense that it has headed off the imminent risk of a deflationary spiral, and generated some economic growth. On the other hand, deficits this size cannot be continued over the long haul; Japan now has Italian (or Belgian) levels of internal debt, together with large implicit liabilities associated with its awkward demographics. So the current strategy can work in the larger sense only if it succeeds in jump-starting the economy, in eventually generating a self-sustaining recovery that persists even after the stimulus is phased out.
 
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The one and only thing that Abenomics had accomplished was to raise the Nikkei 225 Index significantly.

And even that has stalled - despite the fact that the Japanese Central Bank is directly buying huge amounts of stocks through ETF's.

Today it is lower then it was at the end of 2013.

Abenomics is/was a colossal mistake.

And yet many Krugmanites were/are all for it...making excuses for it's failures.

Funny...I don't see much from them now. I doubt they have learned their lesson...my guess is they are using that old Krugman excuse....more money.

Macroeconomic ignoramuses of the first magnitude.

They cannot admit their mistakes even when the proof is staring them in the face.
 
DA60 said:
The one and only thing that Abenomics had accomplished was to raise the Nikkei 225 Index significantly.

And even that has stalled - despite the fact that the Japanese Central Bank is directly buying huge amounts of stocks through ETF's.

Today it is lower then it was at the end of 2013.

Abenomics is/was a colossal mistake.

And yet many Krugmanites were/are all for it...making excuses for it's failures.

Funny...I don't see much from them now. I doubt they have learned their lesson...my guess is they are using that old Krugman excuse....more money.

Macroeconomic ignoramuses of the first magnitude.

They cannot admit their mistakes even when the proof is staring them in the face.
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You can't rationalize, let alone explain, why Japan continuously flirts with deflation, or why their currency appreciates without central bank intervention. Hence, your posts come off as though they were constructed from observing a group of cheerleaders during an away game.

It is impossible to have a valid discussion with you on this topic, because you lack both courage and conviction.
 
Kushinator said:
You can't rationalize, let alone explain, why Japan continuously flirts with deflation,.
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its a dead soviet-like economy, nobody spends or invests so of course deflation is always an issue. Same problem here to a lesser extent. As the libsoviet influence grows an economy will shrink. We've only seen it 132 times by now and still the liberal lacks the IQ to understand what he sees.
 
The one thing - the one and only significant thing - that was benefiting under Abenomics was the Japanese stock market.

With the JCB (Japanese Central Bank) directly buying billions and billions of dollars in stocks...how could it not?

Well...even that seems to have evaporated.

The Nikkei today is lower than it was 2 years ago...and is basically stagnant.

https://www.google.ca/search?q=nikk...1j69i57j0l3.2439j0j4&sourceid=chrome&ie=UTF-8

So now the only real benefactor from Abenomics seems to have left the room as well.


Abenomics? A macroeconomic policy for macroeconomic ignoramuses.
 
Japan's economy posts longest unbroken growth streak in more than a decade

The world's third-largest economy grew by 1% during the April to June quarter - up from 0.4% between January and March, and well ahead of the 0.6% forecast by economists.

On an annualised basis, the Japanese economy grew by 4%, significantly ahead of the 2.5% pencilled in by forecasters.

It was the strongest quarter of growth since the first quarter of 2015.

It means Japan is growing faster than the likes of the United States, whose economy grew by just 2.6% on an annualised basis during the same period, and appreciably faster than the UK.

Japan's economy has now grown for sixth successive quarters, the longest growth streak it has enjoyed since 2006, representing a triumph for Prime Minister Shinzo Abe, who took office in 2012 promising a revival.
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No policy set that fails to deal with the Japanese demographic crisis will be able to save the country in the long term, but I largely agree with Abenomics as an interim solution save for the absurd increases in the consumption tax.
 
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