Worries for Japan's economy after election shock

@rakuraku

If this were so magical, why would all countries do the same?

The ones that can are. National debt is massive among the wealthy nations who don't depend on foreign loans denominated in currencies they can't print. Greece and Argentina are in a different class.

"(Although) Ishiba appears to appreciate fiscal discipline, he will likely continue to compromise and refrain from discussing additional revenue measures even though they are important in the long run," said Shigeto Nagai at Oxford Economics.

Every time the Japanese politicians get extra revenues, guess what?

They spend it faster than a bullet train whips by.

The only way to have fiscal discipline in Japan is to slash spending. This requires a huge reprioritization of all spending.

Pro growth reforms could help boost valuable economic activity too. Simplifying the tax system so people can focus their energies on making more money rather than trying to avoid paying tax would be a plus.

How much damage can one man do in the shortest amount of time? Japan, you guys really know how to pick em!

All parties should "face the reality of the situation, engage in thorough discussions, and move forward with the necessary policies", he said.

Hell will freeze over first.

The LDP are inept and useless.

Yes, because having an all LDP leadership would have be very good for the Japanese Economy and the living standards of the population. /s

It's actually the other way arround. Now it's time to have good and strong sliders who can push back Japan from the Recession it is for the past 4-5 years. With the LDP leadership, the Japan economy shrinked from 2nd place, all the way to 5th (India will surpass Japan next year most likely); the Yen lost 60% of its value; the inflation made the real salaries to steeply shrink for the past 2-3 years, prices almost doubled for everything, and so on.

Why so much regret for not having all LDP in power?!?

JeffLeeToday  09:21 am JST

Higher interest rates will also make servicing Japan's colossal debts more expensive.

So what? Most of the coupon payments will flow back to the govt, as most "debt" is already in the public sector. The other bond holders will be receiving yen they can spend or investment, ie "stimulus."

If this were so magical, why would all countries do the same?

There is an excellent book by the two prominent Harvard academics, Kenneth Rogoff and Carmen Reinhart, called This Time Is Different: Eight Centuries of Financial Folly. By collecting data over centuries, they demonstrated that for all countries with public debt as large as Japan’s it always ended up in tears for the population.This outcome holds true even when the debt is 100% held by domestic investors.

What else do Japanese worry about, except the economy? Even when natural disasters strike, it's mainly their economic impact that gets mentioned.

Worries for Japan's economy after election

Why? It was in shambles before the election. What's the difference?

Honestly, did anyone really expect serious reforms anyways? Japan has needed economic reforms for 30 years and nothing has happened.

Higher interest rates will also make servicing Japan's colossal debts more expensive.

So what? Most of the coupon payments will flow back to the govt, as most "debt" is already in the public sector. The other bond holders will be receiving yen they can spend or investment, ie "stimulus."

A serious question is, “does the PM have any effect on Japan’s economy?”

many have tried and

For more than two decades Japan government have never come up with the formula and solution how to improve their stagnant economy the ruling LDP should be on the sideline because they are not any more effective running the government.

japan sent 470 billion yen recently to Ukraine without the citizens's agreement.

now Japan worries about the colossal debts??!!!

WTF!!? the circus continues!!!

No shock. Almost par for the course. The LDP lost some seats, but the main corrupt player were all voted back in. The Japanese had a chance to make some real changes but chose to made a half assed decision...par for the course.

It’s difficult to stop a train falling off a bridge but that is what Japan is ; a train wreck in slow motion…

A "shock" would have been an outright victory for Anyone But The LDP.

This was a blip of some intensity - anything less than Complete LDP Hegemony is definitely on the unusual side, but "shock" is pushing it a bit.

Only some minor changes to expect, for the better.

No need to worry

When all you do is keep rates to zero or negative, send money for overseas wars, spend money on out-sourced defence when you can do it yourself and refuse to trade with your largest customer, maybe its time to try something else that works since it is obvious Japan is just getting poorer by the years. Don't just blame population decline. Being poor and right is not much better than being rich and neutral.

Again, another scare mongering article that the sky is falling because the LDP is seen to be losing it's iron grip on power. Nothing Abe/Suga/KIshida did helped pay down the debt, or improve Japan's economic situation. It was all platitudes and wishful thinking.

Political uncertainty after Japan's election shock risks slowing economic reforms, pushing up government spending and even holding up the Bank of Japan's exit from its outlier monetary policy, economists said.

The BOJ and LDP and Abenomicas and New Capitalism all said QE benefiting large asset holders would create'a complete exit from deflation and a virtuous cycle of wage growth '.

Complete voodoo economics resulting in inflation and stagnant wages for workers.

Great for the Nikkei though

Shock, what really new?

Population decline, labor shortage, price increase, stagnant wages?