Abenomics starting to fail? Japan Current Account Surplus Smallest on Record

[tranquilium]

Your knowledge of economics is extremely limited kid.

Indian market is insignificant and Indian investment environment is one of the worst in the world.

Japan needs China far more than what we need Japan. Most of our manufacturing is ours, in fact 60% is domestic with foreign manufacturing being mostly from Taiwan and Hong Kong.

India is an economic joke, with red tape, and a general lack of intelligence and anti-business mentality.

FDI into China is over $120 billion.
FDI into India is $30 billion.

Chinese consumption market is over $3 trillion. That's nearly double the size of the entire Indian economy. LOL.
Yes, just our consumption market alone is nearly twice as big as your entire economy.

Put that in your pipe and smoke it poofter.

Actual effect of foreign investment in Chinese manufacturing market is pretty small anyway. Currently, foreign investment (including Hong Kong and Taiwan) accounts for only 4% of the fixed assets in China. Quite a bit of foreign investment was trapped as non-controlling share of stocks when they artificially suppressed the stock market in 2007. (which was excellent timing considering the 2008 wall street disaster) The fact is, nowadays China is mostly looking for technological transfer as oppose to capital.

 

[senheiser]

24 November 2013, 19:54

The failure of Abenomics

© Фото: Анна Форостенко / «Голос России»

Japan's ambitious program of kick-starting the economy using a massive increase in money supply is losing popular support. The so-called 'Abenomics' program, named after prime minister Shinzo Abe, was supposed to revive economic growth after two 'lost decades' of stagnation but it failed to live up to expectations.

During its inception phase, 'Abenomics' had a broad support base, but now a growing number of opinion makers are questioning its merits.One example is Reiji Yoshida, a Japan Times columnist, who wrote an Op-Ed in which Prime Minister Abe and President of Bank of Japan Haruhiko Kuroda are criticized for taking excessive risks that can lead to a massive economic disaster. "How has the Bank of Japan strategy changed Japan's financial markets and the real economy?", asks Yoshida. The answer is that the changes brought by Abenomics are negative not positive: "there are growing signs of inflation, but not the sort heralding the start of Abe's much-advertised recovery and rising wages. Instead, imported fuel and other products have become more expensive because of the weak yen ushered in by Kuroda and Abe, and this bodes ill for the public's living standards."

The main problem is that Abenomics failed to compensate higher energy costs by increasing exports. At the same time, a massive quantitative easing program launched by the Bank of Japan (BOJ) eroded the purchasing power of local consumers, hurting the internal market. So far, Shinzo Abe and Haruhiko Kuroda have put forward only one solution: print some more money, increase the debt of the state and hope that everything ends well. But what if it doesn't end well? Reiji Yoshida found the perfect description for the state of the national economy: "BOJ's money mountain growing but debt may explode". Unlike the US, Japan doesn't have the privilege of printing the world's reserve currency and therefore can't export inflation to other countries. That is why all attempt at quantitative easing don't help the broader economy, but hurt the Japanese consumer who has to bear the brunt of inflationary pressures."People have been deceived by Abenomics," Yukio Noguchi, a prominent economist and adviser to Waseda University's Institute of Financial Studies, told The Japan Times in a recent interview.His prognosis is grim. "Sooner or later, concerns over fiscal sustainability will emerge. You can't rule out the possibility of a surge in the (long-term) interest rate at a critical point. This is nothing but fiscal bankruptcy", he added.

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[Genesis]

I think it's still too early to call bust. Maybe it will work, maybe something crazy may happen, maybe this is a transitional period. People are too inpatient these days.

Like those calling end of China, end of America. If there's one thing I learn from China doubters is never speak too early, or at all. You just never know if you are wrong, or in China doubter's case, you do, but you do what you do for good hate.

 

[bolo]

I think it's still too early to call bust. Maybe it will work, maybe something crazy may happen, maybe this is a transitional period. People are too inpatient these days.

Like those calling end of China, end of America. If there's one thing I learn from China doubters is never speak too early, or at all. You just never know if you are wrong, or in China doubter's case, you do, but you do what you do for good hate.

it won't work because of this:
"BOJ's money mountain growing but debt may explode". Unlike the US, Japan doesn't have the privilege of printing the world's reserve currency and therefore can't export inflation to other countries.

 

[Fukuoka]

Japan is really in deep sh, it's like a nightmare scenario
But i suspect JEW USA for making Fukushima as Japan planned to get out of the dollar system