Sunday, February 17, 2019

There are your consumer price hikes


Another risk is the Japanese government’s plan to raise the nationwide sales tax to 10 percent from 8 percent in October.
The government needs the extra tax revenue to pay for rising welfare costs, but some policymakers and economists worry the tax hike could hit consumer spending and weaken sentiment.

Japan’s policymakers have long argued that an increase in business investment will contribute to economic growth as companies replace old manufacturing equipment and invest in new technology.
Call it inflation if that suits your selected price index. I call it hiking consumer prices in favor of government, needed now to shore up the pension fund which is being hit.  But capital expenditures are dropping, and have dropped also.

They are still on their thousand year Euler path, they kick long can.

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