Monday, June 21, 2010

Japanese Prime Minister calls for massive new tax increase!

Another leader who believes that cutbacks produce prosperity. Japan was one of the few bright spots that I mentioned in my 2010 Outlook. It's not anymore.

Prime Minister Naoto Kan renewed his call on Monday for tax reform including a possible doubling of the sales tax to rein in Japan's huge debt, as ratings agency Fitch warned the country needed a credible fiscal reform plan.

And he's kowtowing to a rating agency!! Ugh!!!!


Mike Sandifer said...


Even at full-capacity, can a central bank simply buy its own governments' bonds and more or less simultaneously raise reserve requirements to counter inflation?

This question just occurred to me.

Mike Sandifer said...
This comment has been removed by the author.
Mike Sandifer said...

I should mention the point of the above question, which is whether this could allow for deficit reduction sans negative consequences.

Oh, and by full-capacity, I'm referring to economic capacity, to be specific.

Mike Sandifer said...

And maybe every central bank would have to do this to avoid forex consequences.