Skip to comments.The dark side of Abenomics (Japan)
Posted on 06/16/2013 7:24:28 PM PDT by TexGrill
The government on May 10 revised upward the growth rate of the nations gross domestic product for the January-March period. Previously it reported that the economy grow 0.9 percent or an annualized 3.5 percent in real terms from the previous quarter. It now says that the economy grew 1.0 percent or an annualized 4.1 percent.
Thus the government claims that the real economy is improving thanks to the Abe administrations economic policy, which centers on massive monetary easing by the Bank of Japan.
But people should not be duped by the governments public relations efforts. The dark side of Abenomics is raising its head. Stock prices have started to show erratic fluctuations. Institutional investors have made profits, but ordinary citizens are in no position to benefit from the stock market.
The fairly cheap yen, compared with the level prevailing during the days of the Democratic Party of Japan government, has helped improve the performance of export-oriented businesses. But the price rises of imported fuel and raw materials are translating into high electricity charges and high prices for food items. The government should give priority to stabilizing peoples lives and should flexibly cope with volatile economic conditions.
(Excerpt) Read more at japantimes.co.jp ...