Calling Early Elections in Japan, Abe Rolls the Dice on the Economy

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Calling Early Elections in Japan, Abe Rolls the Dice on the Economy
By MARTIN FACKLER

IWAKUNI, Japan — When his popularity was soaring at home, Prime Minister Shinzo Abe declared in Washington a year ago that “Japan is back.”

Now it appears that he spoke too soon.

Faced with troubling economic data showing that Japan has slid back into recession, Mr. Abe called Tuesday for early elections, raising fears not only that his vaunted program for economic revival was faltering, but that his popularity might fade with it.

Mr. Abe took office with promises of drastic stimulus and change, pursuing a program supercharged with nationalism that he offered as an antidote to Japan’s decades of economic stagnation and chronic malaise. It is not yet clear why his program stalled.

Was it that he tried to do too much — unleashing the central bank to pump out cash while raising taxes to rein in the national debt? Or was he not bold enough, failing to enact painful market-opening measures and structural changes needed to make the recovery last?

Full story: http://www.nytimes.com/2014/11/19/world/asia/prime-minister-shinzo-abe-calls-for-early-elections-in-japan.html

-- The New York Times 2014-11-19

[elgordo38]

Smart move Abe call an election before ye ole Titanic sinks and the bad news and the economy only get worse. After the masses put you back in office you can sock the next 2 sales tax increases to the populus. True blue politician so predictable.

[rickirs]

"... unleashing the central bank to pump out cash while raising taxes to rein in the national debt?"

Sounds like the Junta's approach to Thailand's economy. And if the Japanese economy tanks again, Thailand may suffer as a result. Let's see what the dice bring ... throwing craps has equal odds.