Sanae Takaichi, Minister of State for Economic Security and a candidate for the LDP presidential election, warned on an internet program on the 23rd about the Bank of Japan’s monetary policy management, saying, “I think it would be foolish to raise interest rates now.” He expressed recognition that this would have a negative impact on personal consumption and corporate capital investment, and emphasized that “there are concerns that we may return to a long period of deflation.” He also pointed out that there are benefits to a weak yen. Bank of Japan Governor Kazuo Ueda has said that there is “plenty of time” to decide whether to raise interest rates, but he is sticking to his policy of “raising interest rates gradually” if the rate of increase in consumer prices is as the bank expects. Takaichi stated clearly that “now is not the time to lower consumer and investment sentiment.” Regarding the weak yen, he commented that “it is an opportunity for export industries to continue exporting.” He also explained that the weak yen would increase the surplus in the Foreign Exchange Fund Special Account. He reiterated his opposition to tax increases that would accompany increased defense spending. He argued that the source of funds would be construction bonds used for public works projects and other expenses. Regarding the tobacco tax hike, he said, “It’s not a matter of it being a good thing.” He also criticized the government’s goal of achieving a primary balance surplus by fiscal 2025, and called for strategic fiscal spending. [Kyodo] Nikkei Newspaper September 23, 2024 17:54 ★12024/09/23 (Mon) 18:00:18.79 ※Previous thread.
Unfortunately, the new Prime Minister is Ishiba Shigeru. There will be a runoff election between Ishiba and Takaichi Sanae, and votes from Koizumi Shinjiro’s camp will go to Ishiba. The Aso faction also does not have the centripetal force it had in the past, so a certain amount of votes will go to Ishiba. Diet members believe that Shinjiro can be welcomed into an important post in the Ishiba Cabinet and will be able to fight in the upcoming national election. This is because Takaichi and Shinjiro are right-wing and left-wing within the LDP, so it is thought that it is unthinkable that they will be welcomed into an important post. The Koishikawa coalition is tightly united.
>>3 I think they’re more worried because the Constitutional Democratic Party has taken over from Noda than because of internal LDP circumstances There’s no character contest like Koizumi vs. Takaichi It’s a battle of veterans between Ishiba and Kono, and I think Ishiba will win.
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The group of potters: “The opposite is correct!” “The opposite is correct!” “The opposite is correct!” “So Takaichi is correct!” The sentences are so clearly consistent that it’s shocking [828293379] ://imgur.com/n5mbtj4.jpg.
The Bank of Japan has a lot of pride, so if politicians tell them not to raise interest rates, they don’t want to be seen as obeying, so they’ll do whatever it takes to raise them. Is Takaichi saying this because she really wants interest rates to be raised?
If you raise taxes, you should lower interest rates. Tax increases are everyone’s money. Interest rate hikes are food for the banks. Overseas countries are tightening the leash on interest rates.
I’m not a Takaichi believer. I hate her because she has deep ties to the Unification Church. I think Takaichi Sanae is the best of both the ruling and opposition parties. Her only concern is that there will be no interest rate hikes. Only old people would be happy about an interest rate hike now.
So what are we going to do about the weak yen? Surely they’re not crazy enough to say they’d welcome it if the yen went up to 200 yen to the dollar? Are they planning to continue subsidizing gasoline and electricity to cover the weak yen? If there were no subsidies and the yen went up to 200 yen to the dollar and gasoline went up to 230 yen, the LDP would collapse in an instant, so that might be a good thing too lol.
Because interest rates aren’t being raised, we’re in an abnormal situation where over 90% of home loans have variable interest rates. Not only home loans, but investments and everything else is based on ultra-low interest rates and has no economic rationality, which has resulted in Japan losing its competitiveness. This is the time to ruthlessly raise interest rates and drain the pus.
The real problem is small and medium-sized companies that are in the red and in debt and can’t raise wages. And the majority of Japanese people work there. If we don’t shut them down, nothing will happen.
Decoupling from China will bring manufacturing back to Japan, which is like stopping the supply of pachinko balls during the bonus time for capital investment. Consider who will benefit from higher interest rates.
1997 GDP 543 trillion yen 2021 GDP 552 trillion yen Is it possible for GDP to remain unchanged for over 20 years? Please explain, Ministry of Finance. It’s you, Ministry of Finance.
>>50 Since there is such a large price difference between domestic and foreign prices due to Japan’s low growth in the past 30 years, we should think about raising wages.
>>50 First of all, in Japan, prices have hardly risen at all. 9% is the norm overseas. In Japan, prices were at their highest at 2.6%. So there’s no way prices would rise.
>>50 Compare the rising prices in Japan with those in the West. The important thing is to defend your livelihood while staying in sync. Kishida only covered the electricity bills, but to make up for the price gap and create a virtuous cycle in the economy and raise wages, a budget ten times larger will be needed.
If interest rates are raised any further, government bond prices will plummet and the Bank of Japan will go bankrupt!! We will experience hyperinflation!!
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