If there’s anything “conservative” about Japan’s new government, I’m certainly not seeing it yet (bolds are mine):
Japan’s incoming conservative government said on Wednesday it would launch a huge spending package worth about 10 trillion yen aimed at injecting life into the nation’s limp economy.
The Liberal Democratic Party led by Shinzo Abe will ditch the current spending limit so it can pay for the whopping stimulus, reports said, even as ratings agencies have warned Tokyo over its spending.
“We must work out a supplementary budget urgently,” the party’s deputy head Masahiko Komura told reporters in the Japanese capital.
“From a macroeconomic viewpoint, some 10 trillion yen will probably be needed.”
In his election campaign, Abe vowed to boost infrastructure spending and pressure the Bank of Japan to boost its economic offensive with aggressive stimulus.
The country’s total debt stands at more than twice its gross domestic product, the worst in the industrialised world and a debt burden that has seen global agencies downgrade Japan’s credit rating.
More of the same path the country has been on for what must be close to two decades now isn’t going to solve anything. The country’s Zombie Economy is almost certain to continue.