Uncertainty over the government’s deficit reduction goals in the wake of Shinzo Abe’s decision to push back a sales tax increase was blamed for the decision to dock Japan’s credit rating by one notch from Aa3 to A1.
Of course, the best solution is to reduce government spending. Raising taxes would only choke the economy further.
When does the US downgrade come?
ReplyDeleteyou'd never know if you were relying on Moody's and co
DeleteThe rating agencies are a joke. Does any sane human think Japan or any of the Western economies has any intention of paying back its debt?
ReplyDeleteWhether nations honestly default or inflate is immaterial at this point. Hedge accordingly.
Princes of the Yen: Central Banks and the Transformation of an Economy
ReplyDeleteRather than being naturally more successful at its financial engineering, as fellows like Bernanke have snarkily suggested in their American exceptionalism, I think it is becoming painfully obvious that the US is 'turning Japanese' in its serial policy errors propagated by an insular, ruling elite and the moneyed interests with their political power.
These are the bonds of global repression of the common people by concentrated power.
It rips the heart out of local autonomy and democracy under the banner of 'competitiveness.' It is corrosive of precious freedoms, and tramples the Constitution. But money has helped to ease the consciences of Western politicians.
Even moreso, can there be any doubt that the US, rather than helping to provide a positive example of a different way to Asia, inculcating freedom through its success of democratic and free markets, is in fact falling into the same model, a kind of a lowest common denominator of inverted totalitarianism under the standard of globalization.
I would like to think that Chalmers Johnson would most likely agree that if the Bank of Japan's economists are indeed the 'princes of the yen,' this is because they are now and have long been liege lords in the Empire of the American Dollar.
http://jessescrossroadscafe.blogspot.com/2014/12/princes-of-yen-central-banks-and.html