Currency devaluation becomes the solution to all economic problems

Japan's Prime Minister Shinzo Abe attends a news conference at his official residence in Tokyo

Source: BullionStar – Currency devaluation becomes the solution to all economic problems

Days before Shinzo Abe became Japan’s prime minister in December 2012, he remarked “Central banks around the world are printing money, supporting their economies and increasing exports. America is the prime example. If it goes on like this, the yen will inevitably strengthen. It’s vital to resist this.

Shinzo Abe’s remarks summarized a prevalent theme in central banks’ attempts to jumpstart their domestic economies today – money printing. I prefer to call it currency printing since it is fiat currencies that are being created out of thin air.

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Michelin Chefs Toast Abe as Yen Turns $5,000 Wine Cheap (Oct 2013)

Japan's Prime Minister Shinzo Abe attends a news conference at his official residence in Tokyo

Source: Bloomberg – Michelin Chefs Toast Abe as Yen Turns $5,000 Wine Cheap

Notable excerpts:

Tokyo’s Michelin-starred chefs are raising a glass to Prime Minister Shinzo Abe’s effort to revive the economy as a weak yen and stronger corporate profits put gourmet dinners back on the menu for tourists and local bosses.

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Japan to Raise Sales Tax (Oct 2013)

Japan's Prime Minister Shinzo Abe attends a news conference at his official residence in Tokyo

Source: WSJ – Japan to Raise Sales Tax

Notable excerpts:

Japanese Prime Minister Shinzo Abe said Tuesday he will go ahead with a plan to raise the national sales tax in April and promised a stimulus package to cushion its impact, stressing that the country needs to achieve both fiscal consolidation and economic growth to exit 15 years of debilitating deflation.

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G8 Needs To Deal With Impact Of Abenomics (Jun 2013)

japanese_yen

Source: Financial Times –G8 needs to deal with impact of Abenomics, says Hyun Oh-seok

Notable excerpts:

South Korea has warned that G8 leaders need to do more to tackle the “unintended consequences” of Japan’s monetary easing when they gather for a summit later this month amid mounting concerns about the knock-on effects of a weaker yen.

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Japan’s Stock Market Hits Five-Year High (May 2013)

TokyoSE

Source: The Telegraph – Japan’s stock market hits five-year high

Notable excerpts:

Investors in the Japanese stock market have reason to cheer this morning as the benchmark Nikkei index burst through the 14,000 mark for the first time in five years. The market is now up by 36pc since the start of the year.

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