Japan Goes Full Helicopter-Ben: Prints "Free Gift-Cards" To Spark Consumption
Since Ben Bernanke reminded the world of the existence of government printing-presses, echoed Milton Friedman's "helicopter drop" solution to fighting deflation, and decried Japan for not being as insane as it could be... it has only been a matter of time before some global central bank decided that the dropping of cash onto the populace was the key to economic recovery. Having blown their wad on QQE (and been left with a triple-dip recession), it appears Japan has reached that limit. As Japan's News47 reports, Prime Minister Shinzo Abe has instructed his cabinet to develop economic measures such as handing out 'gift certificates' to the poor to "support personal consumption directly."
As Japan's News47 reports (Via Google Translate),
Following the negative growth of the gross domestic product of the July-September period (GDP), Prime Minister Shinzo Abe is to instruct the relevant ministries to develop new economic measures whereby income is handed out, such as gift certificates to the poor and to people building energy-saving housing, thought to support the personal consumption directly.
Abe also said mitigation measures for the energy price rise due to depreciation of the yen should be included.
Prime Minister in the express policy to dissolve the House of Representatives on the 18th, economic measures is expected to become the backbone of the ruling party commitment in the House of Representatives election.
The activation of consumption stimulus and regional economy and pillars, and founded the grants that local governments can use freely. Local governments to distribute the vouchers to people with low income.
Policy to revive the "housing eco-point" to grant the point in new construction and renovation of energy-saving housing.
* * *
As The Wall Street Journal adds,
A surprise announcement early Monday that the economy contracted for a second straight quarter makes it “absolutely necessary to take countermeasures,” said Etsuro Honda, an architect of Mr. Abe’s economic policy
Koichi Hamada, another close economic adviser to Mr. Abe, said in an interview the central bank should act “without pulling any punches” if the economy continues to show weakness over the coming months. Mr. Hamada said he supported cash handouts to “those who are struggling” because of a higher sales tax and a weak yen.
* * *
So it's absolutely necessary to take countermeasures against the implications of the policies you instigated in the first place?
* * *
And so while some might liken it to EBT cards in the US... it appears this is simply a hidden way to directly hand out free money to those that spend and thus... increase inflation... So no need for firms to raise wages after all!??! Well played Abe.
h/t @L0gg0l and @Thoton
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George W Bush did that also
Voucher for a house, car, bitchezzz and blow.......ok
https://www.youtube.com/watch?v=MjeuTeApR5M
Yes.
Some reason the government couldn't have spent the money themselves? I mean, government knows better than people anyway, right?
Stop the ride, please, I gotta puke.
Have to agree with the ride part.
Unfortunately I don't think there's another handy planet to jump off to.
Please, please, Mr. Abe, would you please print us some free gift cards for Japanese bearings?* Much obliged!
*Hey, many Peruvians are poor too! We have some Nissei there as customers, they would be very thankful...
It's called EBT cards, been there, done that
"It's called EBT cards, been there, done that"
Also:
Obamaphones, Obamacare (no denial of coverage for pre-existing conditions, free contraception, extension of health coverage for students on their parents’ insurance plans well into their 20s, etc), partial forgiveness of college loan interest, loosening of lending requirements by Fannie Mae and Freddie Mac for higher risk borrrowers, use of welfare programs by illegals for the American born anchor babies, etc.
You forgot: WIC, Section-8 Vouchers, Free CalWorks Day-Care,....
Welfare really is the ultimate Economic Stimulus Program: Put money into the hands of people who have no choice but to spend it or become inelligible for next month's grant. (Do you think its an accident that the Food Stamp program is run by the USDA?)
After all; give money to responsible people and they might actually save it,... we can't allow that!
Wrong!
Welfare/food stamp has 2 main goals:
1) It's a subsidy to big-farm, Wal-Mart, and so on
2) People are 3 meals away to start a revolution
By the way, I found this excerpt very telling:
As Charles Mann points out in his fascinating book 1493: Uncovering the New World Columbus Created, one-third of the first three waves of colonists were gentlemen, meaning their status was defined by not having to perform manual labor. During the winter of 1609–10, aka “the starving time,” almost everyone died; those who survived engaged in cannibalism.
Give out your newly minted money to the poor to stave off revolution (by the starving). It's free to you cause you borrowed it from the CB at 0% interest, enriches the CB cause you're paying just slightly more than 0% on their imagined up money, helps you divide and conguer as the taxpaying envision it as their dollars and mostly goes to corporate citizens as the FSA spends it. Perfection.
I agree with this. The only actors who can act are the ones with the wealth to do so. The fed can make free money. If main street can refinance their debts with free money then the economy will not be encumbered with its overhanging debt.
we already have them in USA....EBT
So so this is exactly how the Republicans will carry the ball down the field, scoring points with the poor, ala Bush.
Yes, EBT and the other programs are a dribble when compared to the boats of gravy slathered over Wall Street.
If free money were going to stimulate the economy they should have sent $3 Million tax free to all of us, not $300.
They should have put a Trillion in Social Security. Medicare is worse off, but we spend too much on health care, Health care is not worth the money spent.
And we can't let the old people starve.
Ohh.. S.N.A.P.
Don't we do that here already?
Even our corporations have pitched in:
Olive Garden
Chic-Fil-A
Who else?
logicalman
Wrote: Unfortunately I don't think there's another handy planet to jump off to.
I beg to differ!
http://www.themarysue.com/wp-content/uploads/2011/12/AnotherEarth.jpg
I've got some bad news for you.....
NoDebt
Are you that sure that people known better?
Hey…. Call me out of vogue, but I question your rhetoric, illogical statement.
Too bad that understanding takes more effort than knowing.
Sarcasm doesn't seem to work as well at night or over the weekends on ZH.
If you assume 100% of what I say is meant sarcastically, you'll usually be right.
Situations are Ironic, people are Sarcastic
I find ironic, but definitely expected that, for the US to maintain its Empire (lifestyle) the government, private, and business have to live of debt, because the real economy, under the rules of capitalism, couldn't generate half of the wealth that we have now.
Why can’t some of you get it? Put your finger on the real issue? Now, I’ve been a little sarcastic.
Wrong. Debt undermines capitalism, robs wealth and steals from growth and innovation. The direct path to socialism is via private debt, backstopped/ morphed into governmental debt programs.
You're wrong.
Our debate should be about:
a) Energy and not economics
b) Reproduction and not conspiracies
c) Methane and not global warming
d) Science and not religion
e) And not about college education but survival skills
Wonder why?
Because, otherwise, our society will be vulnerable to religious demagogues (Fascists) and easy solutions (political dictators).
Introduce leveraged debt into the 'free world' rather the investment of positive assets and you cap growth and potential all the way down to the personal level. Once you stratify all of society, everything on your list goes away, and instead man serves the artificial construct, known as debt.
DP???
Japan goes full retard - never go full Krugman.
It's on like Donkey Kong vs Godzirra vs Mothra vs Ultraman.
+1 for including Ultraman :-) The greatest "man" in suit!
You forgot Gamera
I smell equal measures of fear and desperation
https://www.youtube.com/watch?v=MjeuTeApR5M
AGree. Bush did it in early 2008, right before the crash
It can't be long now
Yes it can.
EKM's right about Bush doing something similar (but using tax rebates). The Bernank and Hank Paulson walking up the Hill in Sept 2008 and demanding all most a trillion dollars to buy bad debts out of the banks (and then using it to recapitalize them instead). Then early in 2009 the Fed unleashed the origninal QE- buying government debt out of the market with poofed-into-existence dollars.
It was complete insanity. I knew it was all over. ZH was launched amidst all this and for the exact same reason.
But I was dead wrong. So was ZH's core premise (at least at the time).
And here we are.
These fuckers control the money supply. They can keep this shit going FAR longer than you and I think they can.
They've already kept the ship afloat way longer than any sane person could have imagined.
They will likely keep it going longer than even the insane could imagine.
Amen!
This Turd won't die. It's just gonna stink and rot to pieces and finally dust.
It'll take forever too.
We won't see a "collapse" on a massive scale, just lots of little ones.. Death by 1000 cuts.
Unless that Puty or those tricky chi-coms dirty deal us.
Then the Turd* Dies.
* This is not directed at Turd Ferguson, who posted here many moons ago.
Exactly, Thanatos and Logicalman. Exactly. This is going to be one twisted, ugly, unrecognizable hellhole before anything meaningful changes.
You don't think somewhere along the road they might unexpectedly lose control of the whole thing? To my knowledge, they still can't buy (or "QE") confidence: once that's finally lost, the few levers they can pull or buttons they can push aren't going to produce the desired results anymore.
I wouldn't discard the possibility of a sudden implosion.
The shit must go on but the farce is wearing a little thin around the edges these days
Japan is heading back into recession with a multitude of serious and intractable problems
http://www.nytimes.com/2014/11/17/business/international/defying-expecta...
This new move just additionally confirms to the Japanese public that they are in fact led by idiots
BINGO!
Kitler
If the war stays in Europe, and in land, these will be good news for the US, the dollar, and China; because Russia will become even more dependent on China.
But, if the US loses ships…..
Anyway, for whatever its worth:
The next 2008/2009 (market crash) I have it for 2016/2017
The next 1973 (oil crisis) I have it for 2019. But, this time, we won’t be able to recover.
The next 1963 (civil rights movement for equality) I have it for 2018. But it won’t matter, because it will happen on the big cities; and, it’ll be too late to make a difference.
it's fine HUD's Castro realizes it is "too difficult to get a home loan"
http://hedgeaccordingly.com/2014/11/hud-secretary-julian-castro-too-diff...
Honest Abe: Annual Gift Man come early this year. Celebrate with sparkle!
Yep... this seems eerily similar to those stimulus checks.
put me down for $5 on the krugman
whenever a match seems hopelessly unbalanced, bet the other way - call me a contrarian
Hmmmm... Maybe if Krugman wore a luchidor mask.... That's it! LUCREWHORE, a green mask with a gold $ on the face....
That's almost as disturbing as this.
https://www.youtube.com/watch?v=DI7pPVJTeSY
Hey Abe old buddy! I'll take one of those gift cards and ship me over a brand new 2015 Toyota Tundra TRD Pro while you're at it, thanks!
https://www.youtube.com/watch?v=DI7pPVJTeSY
If the central bank is going to hand out free money, better to give it to poor people then rich assholes.
Short term demand won't raise expectations - it will just increase prices. The poor will still lose......and lose the most. What a bat shit crazy shit show.