From Vern Gowdie – The Gowdie Letter (Australia) –
Let’s travel back to February 2013.
Japan’s newly elected Prime Minister, Shinzo Abe, announced his bold, brave and bullish economic blueprint… Abenomics.
Abe’s plan is based on three ‘arrows’ (fiscal stimulus, monetary easing and structural reforms), designed to lift Japan from its 20-year economic deflationary stupor.
On 3 February, 2013, Forbes contributor Stephen Harner wrote:
‘Specifics toward policy aside, it is hard not to be mightily impressed by the practiced hand apparent in the new Abe/Aso government. These guys seem to know how to govern.
‘…with PM Abe Shinzo and his alter-ego, mentor, and (in a relationship resembling that of Dick Cheney and George W. Bush) possibly master, deputy PM and finance minister Aso Taro. These men seem firmly in charge and settled on a concrete (no public works spending pun intended) agenda for reviving Japan’s economy.’
‘Know how to govern.’ ‘Firmly in charge.’ ‘Settled on a concrete agenda.’
Mr Harner leaves you in no doubt that Abe and Aso are men of discipline and strength.
However, it’s the first four words that tell the real tale: ‘Specifics toward policy aside’. It is a minor detail, but extremely important.
Allow me to interpret what these words mean. If we put to one side the fact that these guys are planning to print a gazillion yen to indirectly underwrite their inability to control their spending habits, and to prop up the worst performing share market of the last quarter of a century, and to put the yen not just in the toilet but around the S-bend to improve export competitiveness, and to keep printing even more yen until inflation nudges the 2% level, then, yes, they are indeed courageous pioneers.