Japanese Prime Minister Abe Heads Into Election With Wide Lead

[MachineGhost]

Doesn't look like "trickle down economics" has been working for the common man.  What will it take to pull Japan out of deflation once and for all?

The results show that support for the 60-year-old prime minister is fragile. His efforts to prop up the economy over the last two years have bolstered profits at many big companies, but ordinary voters complain they haven’t shared the benefits.

The world’s third-largest economy contracted in the July-September period, surprising economists who had largely expected a modest expansion. Consumer spending has been depressed by an increase in the consumption tax to 8% from 5%, in April.

Mr. Abe dissolved the lower house of parliament last week and said in an address to the nation that he had done so to seek public approval of his decision to postpone a planned second increase in the sales tax. The tax was scheduled to rise to 10% next October, but Mr. Abe pushed back the date by a year and a half in response to the disappointing economic data.

With total debt more than twice the size of the economy, Japan needs to shore up its fiscal position, analysts say. But with consumer sentiment remaining weak, postponing the tax increase is hardly an unpopular move.

http://online.wsj.com/articles/japan-pr ... 1416804416

[Reub]

Abe has certainly shaken up that economy! Yet they are still experiencing negative growth. Will all of that "stimulus" finally pull them out of the doldrums? How can money printing at staggering levels not be working?

[MachineGhost]

Abe has certainly shaken up that economy! Yet they are still experiencing negative growth. Will all of that "stimulus" finally pull them out of the doldrums? How can money printing at staggering levels not be working?

I think Japan needs time for Abe's minor economic reforms to take root.  It hasn't been that long to change cultural attitudes towards immigrants and women, who are treated like second class citizens..  I suspect Abe's calling an election early so he can clear the deck in terms of the opposition and to be assured of having more time without having to worrying about the opposition hijacking any green shoots.  And to be able to offer even more reforms because nothing has really been that deep yet.  It goes without saying that stimulating inflation, printing money, etc. isn't going to do jack shit when future confidence is ZERO.  The world is in the Twilight of Keynesianism.  It's do or die time.

And I sure hope we don't have to go over two decades before anything gets done!

[MachineGhost]

He pulls it off!  Now lets put the pedal to the metal and see some real reform.

Abe Scores Commanding Majority in Japan Lower House Election Win
http://www.bloomberg.com/news/2014-12-1 ... -says.html

The Japanese Communist Party took 21 seats, more than doubling their tally from eight in 2012.

Really, McArthur setup a bloody parliament?  That was stupid.