Amid two (notably female) resignations this weekend (Justice Minister Matushima and Trade Minister Obuchi for alleged misuse of political funds), Abenomics tilt towards women as a pillar of the Japanese recovery is taking yet another blow, removing “one of his ways of distracting people from his less popular policies.” However,it is Japan’s Economy Minister, Akira Amari, that went full economic retard this weekend – having learned well from his wise American central-planning brethren. Rather than face reality that Abenomics currency devaluation printfest has crushed the consumer beyond all expectations (as we noted since the start and Goldman just admitted), he blames the weather for economic weakness: “including the effects of large typhoons and heavy rains in July and August, Japan’s 3Q economic situation is probably not a strong recovery.”
As Bloomberg reports,
After nearly two years without a single resignation from Japanese Prime Minister Shinzo Abe’s cabinet, two female ministers stepped down on the same day.
Yuko Obuchi, trade and industry minister, resigned over allegations of improper use of political funds, and Justice Minister Midori Matsushima, 58, quit over claims she breached election laws. The resignations are a double blow to Abe who has made promoting women a pillar of his economic policy.
The resignation of the two ministers “one of his ways of distracting people from his less popular policies is no longer a distraction.”
But that’s the least of Abe’s worries as the economy flounders back towards recession and moar QQE is untenable… (as we explain here)
Akira Amari’s official website explains…
“Including the effects of large typhoons and heavy rains in July and August, Japan’s 3Q economic situation is probably not a strong recovery,” Japanese Economy Minister Akira Amari writes in a post on his website.
Amari: “Unless there is really strong data in September, we will have to decide on a stimulus package to return the economy to the growth path, with this delinked from the decision on the sales-tax increase”
Amari: It’s better to decide on a further sales tax increase as early as possible so compilation of next year’s budget not left unfinished at the end of this year
Amari: Prime Minister Shinzo Abe’s advisory panel which will examine the current economic situation will be held over a few days before and after the announcement of preliminary 3Q GDP on Nov. 17
Opposition has pointed out miscalculation and misconceptions of Abenomics.
Exports does not extend to a weaker yen, real wages Toka are going down, and have contributed more negative than positive, rather than a break from the deflation, the depreciation of the yen has caused a recession, stagflation of inflation
Exports due to the depreciation of the yen has not yet been been growing as expected and is a miscalculation, to be sure
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For those banking on moar flow from the BoJ, think again.
via Zero Hedge http://ift.tt/120iS7v Tyler Durden