The Japanese government launched a record stimulus package totaling 56.8 trillion Yen. Or 56.000.000.000.000. This amount represents 11.2% of the Japanese GDP. The three centerpieces of the direct stimulus part are:
- measures to boost consumer electronics/automobile replacement
- measures to boost consumer electronics/automobile replacement
- a gift tax cut aimed at stimulating housing investment
- public works projects
Now, we wonder: this money is coming out of nowhere and is injected in the economy. As long as there is no velocity of money in Japan (gone since the early nineties) this kind of action will not cause inflation. But at the same time you have to put it somewhere on your balance.
When will this liability be gone?
2509?
- public works projects
Now, we wonder: this money is coming out of nowhere and is injected in the economy. As long as there is no velocity of money in Japan (gone since the early nineties) this kind of action will not cause inflation. But at the same time you have to put it somewhere on your balance.
When will this liability be gone?
2509?
This world is experimenting with paper currencies on a scale never seen before.
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