Japan says G8 stance is sign of approval for 'Abenomics'

TOKYO Mon Jun 17, 2013 11:35pm EDT

British Prime Minister David Cameron (L) welcomes Japanese Prime Minister Shinzo Abe for the first plenary session of the G8 Summit at Lough Erne in Enniskillen, Northern Ireland June 17, 2013. REUTERS/Kevin Lamarque

British Prime Minister David Cameron (L) welcomes Japanese Prime Minister Shinzo Abe for the first plenary session of the G8 Summit at Lough Erne in Enniskillen, Northern Ireland June 17, 2013.

Credit: Reuters/Kevin Lamarque

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TOKYO (Reuters) - Japanese cabinet ministers welcomed the Group of Eight summit's stance on Tokyo's sweeping stimulus policies as a vote of confidence in the government's strategy to end 15 years of entrenched deflation and revive a lackluster economy.

Japan's economics minister also moved to parry any suggestion that Prime Minister Shinzo Abe's policies, known as "Abenomics", are aimed at intentionally weakening the yen to benefit the country's exports.

"Abenomics" combines fiscal stimulus, expanded debt purchases by the Bank of Japan and economic reforms, but some argue the policy mix could worsen Japan's debt burden, devalue the yen and disrupt global capital flows.

"Japan hasn't been in the spotlight at a G8 meeting for quite some time," Finance Minister Taro Aso said.

"More countries are starting to appreciate that our policies will contribute to the development of the global economy."

In a statement which will form part of a final communiqué at a summit in Northern Ireland, the G8 leaders said Japan needed to address the challenge of defining a credible medium-term fiscal plan.

"Japan's growth will be supported by its near-term fiscal stimulus, bold monetary policy and recently announced strategy for promoting private investment," it said.

"However it will need to address the challenge of defining a credible medium-term fiscal plan."

Japan's debt burden is the worst in the world at more than twice the size of its $5 trillion economy. Successive governments have promised to do more to rein in spending and increase revenues, but little progress has been made over the years.

Abe's government pushed through fiscal stimulus plans earlier this year. The spending is helping the economy but has added to the debt burden and reinforced the need for fiscal reform.

The BOJ in April launched an expanded quantitative easing campaign to reach 2 percent inflation in two years. Under the scheme, the BOJ's monthly purchases of government debt are the equivalent of around 70 percent of newly issued government debt.

The yen has tumbled from late last year in anticipation of more aggressive monetary easing, prompting some countries to worry about competitive currency devaluations.

Economics Minister Akira Amari dismissed these concerns on Tuesday, saying many countries that worry about other trading partners deliberately weakening their currencies have benefited from the same approach.

(This story has been refiled to fix a typographical error in the ninth paragraph)

(Editing by Shri Navaratnam)

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Comments (4)
WwokenUup wrote:
Abenomics = selling Japan’s soul to predatory economic policy, sowing seeds for more negative impression of Abe, and of Cameron selling his soul for anyone who will join the dwindling number of supporting countries of British policy on the Falkland.

Result for Britain: Britain will lose more support on Falkland.

Many who are against imperialism can see themselves supporting the Brits because the people residing on the Falkland islands voted overwhelmingly to stay British.

However, when Cameron starts selling his soul like Faust — supporting Japan’s predatory economic policy, supporting 25% currency manipulation and say nothing, while pushing other MUCH POORER CITIZENS DOWN TO UNEMPLOYMENT — BRITISH BECOMES THE DEVIL SHAKING HANDS WITH THE DEVIL INSTEAD OF FAUST!

Bad move for Cameron for international PR.
Karma will catch up the Brits. Further decline is on its way.

I don’t see how many countries can continue supporting the Brits, aka BP’s, stranglehold on the oil off the Argentinian coast.

It’s only a tiny less bad than the Brits’ twisting of Eisenhower’s arms to overthrow a popular Iranian Government, to set up a puppet Shah Government to maintain British stealing of Iranian oil. As a result, terrible international relationship with Iran persists from the 1950s till now.
Many mistakenly believe that the Iranian situation is due primarily to its relationship with Israel– not true. Talk to the many Iranian Jews who were forced to leave Iran BECAUSE the Brits’ twisting of Ike’s arms to subvert a democratic and popular, more moderate government in Iran than now!

Jun 19, 2013 7:42pm EDT  --  Report as abuse
WwokenUup wrote:
Abenomics = selling Japan’s soul to predatory economic policy, sowing seeds for more negative impression of Abe, and of Cameron selling his soul for anyone who will join the dwindling number of supporting countries of British policy on the Falkland.

Result for Britain: Britain will lose more support on Falkland.

Many who are against imperialism can see themselves supporting the Brits because the people residing on the Falkland islands voted overwhelmingly to stay British.

However, when Cameron starts selling his soul like Faust — supporting Japan’s predatory economic policy, supporting 25% currency manipulation and say nothing, while pushing other MUCH POORER CITIZENS DOWN TO UNEMPLOYMENT — BRITISH BECOMES THE DEVIL SHAKING HANDS WITH THE DEVIL INSTEAD OF FAUST!

Bad move for Cameron for international PR.
Karma will catch up the Brits. Further decline is on its way.

I don’t see how many countries can continue supporting the Brits, aka BP’s, stranglehold on the oil off the Argentinian coast.

It’s only a tiny less bad than the Brits’ twisting of Eisenhower’s arms to overthrow a popular Iranian Government, to set up a puppet Shah Government to maintain British stealing of Iranian oil. As a result, terrible international relationship with Iran persists from the 1950s till now.
Many mistakenly believe that the Iranian situation is due primarily to its relationship with Israel– not true. Talk to the many Iranian Jews who were forced to leave Iran BECAUSE the Brits’ twisting of Ike’s arms to subvert a democratic and popular, more moderate government in Iran than now!

Jun 19, 2013 7:42pm EDT  --  Report as abuse
PPlainTTruth wrote:
Japan is the parasite of the world.
It got rich because it bribed the west to look the other way when it started WWI and WWII.
For the past decades, it bribed the west to look the other way as it wages an economic war BASED ON THE MOST UNFAIR PLAYING FIELD AND INVASIVE ECONOMIC POLICIES AGAINST ITS NEIGHBORS.

ABE = parasite of Asian economy.

Jun 19, 2013 7:45pm EDT  --  Report as abuse
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