An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Sunday, January 31, 2016
Frances Coppola — Japan's negative rates: the China connection
There's more to Japan's negative interest rate policy than meets the eye.
China has 6.9% GDP growth, so this is more of a connection (the same reeking smell of desperation) to the Eurozone and the US, also suffering from weak growth due to a lack of fiscal policy-making (that has resulted in 'austerity' & 'sequestration' policy-making). This is just another garden-variety tax increase, on financial institutions (to 'punish them for not lending'). Later this year the gov’t plans to also increase the Consumption tax, or national sales tax, on everyone else to 10%, to front-load demand (to punish those with a 'deflationary mindset' for not buying).
It’s like completely incompetent people are running the gov’t...Hmmm, why does that sound familiar (?)
China has 6.9% GDP growth, so this is more of a connection (the same reeking smell of desperation) to the Eurozone and the US, also suffering from weak growth due to a lack of fiscal policy-making (that has resulted in 'austerity' & 'sequestration' policy-making). This is just another garden-variety tax increase, on financial institutions (to 'punish them for not lending'). Later this year the gov’t plans to also increase the Consumption tax, or national sales tax, on everyone else to 10%, to front-load demand (to punish those with a 'deflationary mindset' for not buying).
ReplyDeleteIt’s like completely incompetent people are running the gov’t...Hmmm, why does that sound familiar (?)