Bank of Japan and wage growth distraction: Kishida’s admin
Sawako Utsumi and Kanako Mita
Modern Tokyo Times
People in Japan have witnessed three squandered economic decades resulting in limited growth to stagnation. Temporary work and the gig economy – and the abuse of the indigenous working poor and foreign technical intern workers – are all part of the Japanese economic landscape that has worsened since the bubble economy crisis of the late 1980s and early 1990s.
Since Prime Minister Fumio Kishida took office late last year, the Yen went from 110 to the Dollar to 148 in one year. Trade deficits are a constant norm at the moment. Likewise, food prices and utility bills continue to increase. Therefore, irrespective of wages remaining static – or minor wage increases: the result is the same because inflation is making people poorer.
Kyodo News reports, “The corporate goods price index reached 116.3 in September, its highest level since comparable data became available in 1960.”
Lee Jay Walker says, “Hence, for the Bank of Japan to claim that it is keeping its ultra-easy monetary policy to encourage wage growth is a deception of language. Wage growth long before the current demise of the Yen to the Dollar was already static and moribund for vast numbers of people. Therefore, the Bank of Japan is being disingenuous because it is in the self-induced debt straightjacket and is merely waiting for the FED to solve the inflation situation in America – which will result in the Yen becoming in greater demand when interest rates are cut by the Fed next year.”
Haruhiko Kuroda, the Governor of the Bank of Japan, said, “The BOJ considers it appropriate to continue with monetary easing to support the economy to ensure the shift in norms and to ensure the price stability target in a sustainable and stable manner accompanied by wage increase.”
In other words, similar to the Kishida administration, the Bank of Japan is waiting to ride out the storm, and like usual – but strange for an alleged G7 member – the ball is in the court of the Fed.
NHK reports, “Kuroda also noted that Japan has yet to see a positive economic cycle accompanied by an increase in wages.”
Reuters reports (July), “Inflation-adjusted real wages, a key gauge of consumers’ purchasing power, fell 1.8% from a year earlier, extending a decline to post the biggest year-on-year drop in nearly two years.”
The highest national debt in the world belongs to Japan. This concerns the endless mismanagement of the economy by the ruling LDP. Not content, the government is also involved in the unhealthy buying of Japanese Government Bonds (JGBs) via the Bank of Japan (BOJ) at a high rate – while the BOJ and the Government Pension Investment Fund (GPIF) hold roughly one-eighth of the market capitalization of the Tokyo Stock Exchange (the First Section).
Lee Jay Walker says, “Kishida talked about ‘New Capitalism’ before being elected – the only thing new is increasing double-talk and the Yen is in sharp decline to the Dollar. For ordinary people, they are merely getting poorer or wasting another year based on statism.”
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