Death Star Economics



Abe takes Japan, China and India predict slower growth in 2013

With Christmas only one week away, the world is winding down for the holidays and the news are more or less reduced to a simmering of unresolved issues like the fiscal cliff and Europe as such.

Over the weekend, Shinzo Abe returned to the office of Prime Minister in Japan, where he won the general elections and put the liberal democrats back into the driver’s seat. He also opened the floodgates for unlimited monetary easing to stimulate the economy and redeem it from 20 years of stagnation. In response, the yen sank to a 20-month low. Japan’s debt amounts to 237% of economic output, making it the country with the highest debt to GDP ratio in the worldread article

In the US, fiscal cliff negotiations are slowly moving towards a compromise, with John Boehner proposing to raise the income tax on individuals with more than $1m annual income. Obama’s suggestion for a tax raise would hit everyone above $250,000 annual income. Rumor has it that Boehner’s proposal is contingent on Obama to cut spending, for example by raising the eligibility age for Medicareread article

China has loosened its Qualified Foreign Institutional Investor program, which limited foreign investments in Chinese stocks and bonds at $1bn per entity. Effective immediately, central banks and sovereign wealth funds

won’t have to comply with the $1bn limitation. After a policy meeting today, Chinese authorities also announced that the country will seek higher “quality and efficiency” of growth, i.e. accept slower growth, in 2013.

Simultaneously, India cut its growth forecast for 2013 from 7.9% to 5.9%.

Finally, Italy is awaiting Mario Monti’s decision regarding his candidacy in next year’s general election. Center-right politicians (and really most people who can’t believe what Berlusconi is doing) are urging him to run, while some Italian press has already reported that he won’t.

So long.

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One Response

  1. princess1960 says:

    hello and thank you
    Japan ..i reading about the japan situation economic ..i know ready 30y this state have not policy monetary but i know this state too have base havy industry (this is important for the export-import) so this is styl Japanese to continue grow up-down but never stop (failure) ..I think this GV have to do some change structural in economy because the corrent news have change too JAPAN is clear capitalist country so this is the sens of this system failure one or two and open one new …BANKING system is strong for the Japan ..
    -USA about the ”fiscal cliff”some time for some emerency problems is difficulte to understand ..hwo emergency IS opinion is GV Obama have to find solution (deal) with vote inside (congres) close vote ..
    -INDIA really inflation is very high and grow is slow becouse this country is good in technology and agroculture i think the atention have to be there .
    CHINE .i read one article to day from P.CH HE is expert for chine economy -politice i like what he (analysis) make
    and i am agree .
    CHINE -USA have one speciale relationship (this help both countries.
    i don’t believe chine will not tuch from crisis and i don;t believe they will find in grow faster than rest of the world
    -ITALY ..
    i two opinion about this situation crisis politice there ‘
    one ..because the Italy is in really very difficult economice
    noone is ready for the GV (accept Bersani)
    sec .S.BERLUSCONI allways have make ”scandal”moral (i don’t know how true is) figura morale for one leader have to be clean now he have girlfriend 27 yold lady ( i think he don’t take here by force) eh and is not the first or last personality in world who do this we have Sarcozy (who marrie ) very young lady too
    SBERLUSCONI say think’s by name not behind ..this is good he don’t care about money too this is good too
    the election 9people decide ..
    improtant is what the ITALY go to do NOT who will be next PM


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