NHK Japanese economy news segment summary (my words):
1. Inflation app
2. Wages up
3. Prices outpace wages
4. Consumers “stuck” in deflationary mindset, refuse to spend. (Gee I wonder why …)
5. solutions: a) cash handouts (seriously), b) consumption tax cut, c) incentives for cashless payments - praise South Korea for being 95% cashless.
So… while cost of living is outpacing wages, you want people to spend? This makes no sense. Of course people will save whatever they earn and cut back just to pay for necessities…
My guess for what happens next: a push for cashless payments. A push for CBDC. Disincentives for hanging on to your savings. Handouts to encourage dependency (probably in a form of CBDC enrollment incentive).
It’s mind-boggling to me that in a world of finite resources and a sensitive ecosystem, we encourage rapid consumption of resources and complete destruction of our environment.
This is the fiat disease. 🦠
Yes fiat economics doesn't consider future consequences.
I will appreciate it if you would elaborate.
Better getchu some bitcoin
What is the Bitcoin virus doing over there? Spreading and thriving? I hope to see Japans people to not get crushed by this ongoing insanity
Japanese government have been trying for years to stoke inflation. Now they are surprised when prices go up fast than wages.
The currency is on a slow grind to zero as they continue to print money to infinity, and they can't stop it because if they raise rates everyone will see they've been swimming naked for a long time.
It would be good if they at least pretended to try doing something to fix it. The only way out is increasing productivity (and that's a long road). Instead they just want to continue papering over the issues to stay in power.
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