Abe Says Fears Of Hyperinflation Are "Mostly" Unfounded As He Urges Companies To Hike Wages
How does the saying go: it is better to keep your mouth shut and be thought a clueless Keynesian muppet than to open it and remove all doubt? Sure enough, if there was any confusion as to the level of economic comprehension (or lack thereof) of Japan's chosen savior du jour, one who is hell bent on destroying its currency and sending energy costs into the stratosphere (but don't worry - as Rajoy would say, inflation is plunging, except for the things that are soaring) the following two snippets should clear up the situation once and for all.
Japanese Prime Minister Shinzo Abe said Tuesday in parliament that worries of the central bank's inflation target triggering hyperinflation are unfortunate and unfounded.
"It's unfortunate that there are people who tout the mostly unfounded fears of hyperinflation," Mr. Abe said in a lower house plenary session.
Well as long as it is mostly, all is well.
So what is the plan, and one uses the term very loosely? Again from the Nikkei:
Prime Minister Shinzo Abe urged Japan's business leaders Tuesday to raise wages for employees, saying the move could help stimulate domestic demand and beat more than decade-long deflation.
Yes: this is Japan's head central-planner, who just confirmed that the USSR's authoritarian approach to everything was right all along. Until the moment it all turned out to be very, very wrong of course.
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