In Japan things are getting real. The Japanese economy has been confronted with deflation for decades and while the current Prime Minister, Shinzo Abe, made a big bet on quantitative easing he is failing to make a difference for the people of Japan.
‘Kamikaze Abe' probably thought that attacking would be the best defense and announced elections. The idea behind this was, of course, to surprise friend and foe, get reelected, and ultimately get free reign to keep working on his monetary policies.
Kamikaze Abe Has Four Years Of Free Reign
Because of the hopelessly divided opposition, Shinzo Abe had already won in advance. Now the Japanese Prime Minister has another four years to further roll out Abenomics, his aggressively flavored quantitative easing plan.
After decades of problems, Abe's aggressive monetary, fiscal, and economic plans need to get Japan back on its feet. After a strong start supported by positive signs in export, inflation, and corporate profits, the first positive effects are fading.
The Japanese economy has ended up back in a recession in the second and third quarter. What is next for Japan and Kamikaze Abe? Their backs are against the wall and they will need to finish what they started, and time will tell if they will succeed.
