Free-Spending Japan Now Headed to Economic Recovery?204 views 2013-07-25 00:40 Tags: official blank control country forward
It’s official: free-spending Prime Minister Shinzo Abe along with his Liberal Democratic Party and its alliance with the New Komeito Party will control the fate of Japan for the next few years. This will be enough power and support to push forward Abe’s massive and ambitious $1.2 trillion 10-year spending plan to drive the country’s economic recoveryand battle deflation.
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After being comatose for over two decades, something had to be done in Japan, but whether this strategy to drive the economic recovery will work or not is still unclear.
At the recent G20 meetings, ministers applauded Abe’s aggressive monetary and fiscal stance to drive the country’s economic recovery. The countries also acknowledged the aggressive moves by Federal Reserve chairman Ben Bernanke to keep the global money printing strategy going and push ahead America’s economic recovery.
But the problem that I still see is that along with massive money printing comes the significant build-up of debt, which will come into play in the future as interest rates ratchet higher.