Mr Kuroda, the Bank of Japan Governor, has at least authorized the £265 billion stimulus suggested by the Prime Minister, Mr Shinzo Abe. This should work wonders for the world.
In view of the huge stimulus already in place, which perhaps may sink the system eventually, it was good Mr Kuroda has not added to the current stimulus, but just authorized what will be needed for the near future. Of course, the period over which this stimulus would be issued and pumped into the system has not been clarified, but it can be assumed it will last beyond Mr Abe's current term as P.M.
Abenomics proved its success in his first term in office, and it was suggested a second term should be rightfully his, so that he could nurture fully the economic regime in set in place. The results seem to have been good, maintaining Japan's place as the fifth largest economy in the world. There economic influence worldwide is far-reaching and welcomed everywhere. Recently India under PM Narendra Modi-ji borrowed an investment of $35 billion from Japan; of course, they would have obliged him with more, had he just asked. The Japanese bear friendship towards all friendly people, and their circle is bound to grow, with demands for capital in all the developing countries. As well as their marvellous electronics and cars and scooters and weighing machines, Japan is exporting capital. And their stimulus has done a great deal of good around the world, mirroring the stimulus in the U.S. and now in Europe.
In short, all these nations have printed the stuff that keeps the economic momentum going. It would be better still if all that money is loaned out to everybody, to keep their businesses operating in sometimes difficult conditions. (For example, specialist Farm hotel in Tuscany not being able to operate due to temporary lack of customers, and reduced profitability due to withdrawal of E.U. subsidies and local regulations, which of course the E.U. governments need to modify and adapt in tune with today's realities, so that as banks get bailouts they can bailout their customers for the meantime and enable them return to profitability.)
Mr Abe has asked for the £265 billion stimulus to use for government financing, so this will mean a lot of work in the Public Works departments to create infrastructure but also possibly to put some money into people's pockets, in an effort to raise inflation to about 2 percent. This could materialize for them, by giving some social security benefits for couples to start families, perhaps money to low-paid workers to take a holiday (perhaps to Tuscany?) and so on. This money could be dished out to the public directly; about $4000 equivalent in Yen per annum to be spent on each citizen, by way of education, medication, health and social care facilities, but also some for socially useful items as giving people a holiday....that would cheer people up. They have to do something to lift up their spirits after the Fukushima tragedy not so long ago. Once their spirits feel refreshed and restored, things could work out very nicely for them all. For a population of 20 million, they could dish out the stimulus at 80 billion per annum. And once this feeds into the economy, it will create plenty of jobs, give some freebies to the people, and with enhanced expenditure perhaps the inflation will pick up. Who knows? Certainly everyone hopes so. May God's blessings be upon the Japanese people and their friends for a successful deployment of this stimulus. it may do wonders for the world.
Durudarshan H. Dadlani
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