Japan’s Debt Exceeds 1 Quadrillion Yen as Abe Mulls Tax Rise - Bloomberg
There's no way out of deflation for Japan if they want to tax more. This is the eternal problem in that country and it shows how uncomfortable people are with massive government deficit spending. Note the primary surplus. I am not optimistic about the long-term solution here.
"“Ballooning public debt underlines the need for Abe to push for a sales-tax increase,” said Long Hanhua Wang, an economist at Royal Bank of Scotland Group Plc in Tokyo. “This is a minimum policy requirement for his government.”
The levy on consumption is due to be raised to 8 percent in April from the current 5 percent, followed by an increase to 10 percent in October 2015. Abe said he would make a final call on the plan after the release of ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.