Friday, January 29, 2010
Japan’s finance minister pressures BOJ, deflation deepens
"Japan’s finance minister urged the Bank of Japan on Friday to align policy with the deeply indebted government’s efforts to fight deflation, maintaining pressure for possible monetary easing or even government bond purchases."
Looks like, policy-wise, Japan is as clueless as we are here in America. After engaging in quantitative easing for the better part of 15 years without any results, Japan's new Finance Minister is demanding that the Bank of Japan engage in...quantitative easing!
(If it weren't so serious to the world economy and the millions, perhaps billions, who are currently struggling right now it'd be funny.)
The only thing that worked in Japan over the past 20 years had been fiscal policy, but Japan's deficit terrorists (yes, they live there too) killed that off with tax hikes back in 1997 as the market and economy were on the road to recovery.
Sound familiar? It should that's the same script we are following here thanks to the deficit terrorists.