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Saturday Humor: AbeGnomics
We’ll admit it. We just don’t understand Prime Minister Shinzo Abe’s much vaunted economic policy known as Abenomics. Spend public funds that Japan doesn’t have, increase inflation, but not raise minimum wages? How is this supposed to improve the economy? We know we’re missing something. Secretly, we feel like it only works because people believe it works. Sort of like fairies. If you believe in fairies, gnomes, and Abegnomics – than clap your hands! Follow the rainbow, kids! A pot of platinum yen coins is waiting for you.
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put your ruby slippers on and tap your toe together three times...then bend over and kiss your ass goodbye
OK all ye critics of Abenomics -- waiting for your superior solution. Here is what you got: overvalued currency; trade deficit; zombie companies; impossible level of government debt; ongoing fiscal stimulus that makes your impossible debt impossibly more impossible every day. I don't want to hear crickets, now, guys. Step up with your programs.
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Skin, I agree with you, that is the best, and at this point only option that will have a near future positive outcome for that country. The sad truth is I don't think it is going to happen, Japan still has that 'death before dishonor" thing still stuck in their heads. For them to default is the same as them admitting failure. Not going to happen.
I see you are of the opinion that there is a solution to every problem. What is more, the government must be the right tool to implement it. Sad.
Perhaps they should pass a law requiring everyone to have three kids.
Mysticism winning over rationalism like back than ?
As long as they have a pH Dee from an accredited Ivy Leage University there is nothing to worry about. I'm Billy Mays from OxyClean and I approved this message: http://tinyurl.com/mjvecs2
Yo Abe - this is ZH. Where is the pot of gold?
Boating accident? Do gnomes have pots of gold like leprechauns?
The secret is that next week he will announce that Japan has a quadrillion yen coin which will pay down much of the debt.
Going long on platinum.
It's fiat, they could make one out of cardboard.
Because 30 years of QE is not enough....
Smoke and mirrors.
"I can't make up my mind Mrs. Watanabe, the umbrella stave or the bicycle spoke?"
"The sharpened unbrellas stave, there's nothing in his head that can be hurt."
So Japan is to fall on it's own sword? Someone's got to go first... :(
Sorry that really wasn't humor.
"increase inflation, but not raise minimum wages? How is this supposed to improve the economy?"
It suppresses consumption and wages ... which is necessary because Japan can not fuel consumption using internal natural resources and is running a trade deficit. It doesn't really help the economy but real wages needed to be lowered in Japan to pay for the tidal wave damage (we can't all have a reserve currency ala the US, be part of a currency union which funds our trade deficits ala Greece or get infinite foreign funds because investors think you're an economy in rapid transition from Urban to industrialized ala India). In an ideal world this would simply be handled entirely through taxation, but that ship sailed long ago.
I don't see why people paint such a bleak picture of the stock bubble BTW. When a bubble is blown with foreign capital it repatriates foreignly held debt/currency (just like stock and real estate bubbles in the US do, suckering foreign investors into bubbles is one of the ways the US has been able to sustain the gravy train for so long). Sure bubbles collapse, but if in the mean time they lowered external debt they served a purpose.