Saturday, February 22, 2014

The Failure of Abenomics

There are two areas where Abenomics, the democratically elected economic religion of Japan, has succeeded: creating inflation without causing wages to rise, thus whittling down real incomes; and devaluing the yen by 25%, thus wiping out a quarter of the magnificent wealth of the Japanese without telling them directly. Grudging admiration is due Prime Minister Shinzo Abe for these accomplishments.-The Madness of Abenomics In One (Crazy) Chart
The failure is complete. The insane plan was to increase exports and decrease imports due to the devaluation of the Yen, but imports are up 25% in spite of the extra cost (creating Japan's worst trade deficit), while exports haven't risen at the rate they were supposed to.

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