Japan goes to the polls – What will this mean for the Japan / Yen ?

Today is a day when history could
be made in Japan , when the PM will have the means and also the popularity to do the necessary changes to the country .
As someone who has been in Japan for over 8 years this is very exciting as this could in my opinion see the the country go through another boom economically wise .

Public opinion polls indicate that Prime Minister Shinzo Abe’s ruling bloc will win. public option polls show a 60% approval rating for the PM , the highest in any industrialised nation . A victory would give Mr. Abe’s Liberal Democratic Party and the junior partner New Komeito control of both houses of parliament.At stake are 121 seats, half of the upper house seats.

Control of both chambers will remove political obstacles to Abe’s agenda or as the commonly known as ” Abenomics policy ” a sort of Thatcherisim in Japan .

Supporters see that this will give him him free reign to force unpopular changes on Japan’s long under-performing economy.
A key point is to reform of the labour market to make it easier for firms to hire and fire workers, participation in a huge free trade pact and a rise in consumption tax, which economists say will help to slow the pace of growth in the already sky-high national debt.

This is his 3 arrow of Abenomics policy to make Japan grow once again.
We already seen the Bank of Japan flood the market with cheap money , today’s win for the PM could see the value of the Yen weakening even further .

Lets see how this goes , All I can say its not boring.

Tony Evans
Tokyo , 21st July 2013
Tokyo American Club

Bloomberg Coverage


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