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I believe Japan should be cutting the Stimulus

Recently, I read the highly esteemed Emperor of Japan was considering abdicating.  I wonder why.

Also, I always hear the news that their population is growing older, but not growing in size.

Most of the young people cannot think of starting families, so expensive it is to maintain a living standard.

If people lose their jobs, they exist very quietly, not calling attention to their status.

On the other hand, I have heard of houses filled with (toy) dolls, because there are no children.
This shows a desire for some kind of "life"

With the huge Stimulus that Japan has started to print plenty of Yen in a semblance of the quantitative easing in the U.S., Mr Kuroda has authorised the issuance of as much as 85 billion (or was it 110 billion?) U.S. Dollar equivalent per month, so their monetary expansion is on par with the U.S. 

Forgive my saying, but that is enough money to sink the system.....it is only a matter of time.
The signs are already there : the economy is picking up, the GDP and GNP remain pretty subdued, and all that money is not being borrowed - making it necessary for Japanese banks to offer negative interest rates to depositors, so the savers pay something to keep their money at the banks. 

That is a phenomena that is catching up in the rest of the world, especially the mature economies (sometimes referred to as the industrialised world).

More printed money, which is not being borrowed, seems a useless effort......On the other hand, the Yen by itself is stilling strong and rising in value.

Therefore, with all due respect to Mr Kuroda, would it not be the brilliant idea to 'taper' the Stimulus.
Ha, so, cut the amount of money being printed or issued into the system (including electronically).

I believe that should do the trick :  Once the Stimulus is cut, the false expectations of free money will disappear.  In place, you may see more goods from Japan being imported by other countries : people just look the unbeatable Japanese electronics and TVs, the wizard microwaves, jogging stereos and so on.  Why has the Yen been rising so far? - because people are borrowing it as capital.

In the meantime, it may also prove very prudent and necessary measures to increase the amount of social security paid to people, especially the young folks who wish to have children.  Some generous measures will be good.  For this island nation of some 20 million persons with the 5th largest economy in the world is an amazing fact.  They certainly can celebrate life with the highest standard of living in the world, plus generous provision for coming generations, and encouraging people to have children.

Japan is one of the few very lucky nations that can afford to buy everything for their citizens, even overseas, be it houses, cars, food, entertainment, whiskey, brandy, champagne, whatever the people wish for.

Perhaps His Exalted Highness wishes to hand over the state duties to His Son?  In the meantime, he could certainly drop this hint to Mr Kuroda, to taper the Stimulus.

Kind regards,
Durudarshan  H. Dadlani

(c) Copyright, but may be freely shared and translated.

 

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Perhaps His Exalted Highness wishes to hand over the state duties to His Son? In the meantime, he could certainly drop this hint to Mr Kuroda, to taper the Stimulus.
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