|Abenomics Destroys Japan Exports Outlook|
|by Tom McGregor||Sun, May 11, 2014, 09:32 PM|
Prime Minister Shinzo Abe of Japan took a major gamble to boost the national economy. He cheapened the Yen currency, flooded the market with massive liquidity and sparked huge government deficit spending projects. Basically, he followed the advice of New York Times columnist Paul Krugman, a Nobel prize winner for Economics. Abenomics results: EPIC FAIL.
Reuters reports that, " posted a much lower-than-expected current account surplus in March on weak demand for exports and rising imports, reinforcing recent signs that the recovery in the world's third-biggest economy is being hampered by slow shipments".
Tokyo even raised sales taxes that inflicted severe pain on domestic consumer spending.
According to Reuters, "The surplus stood at 116.4 billion yen (676 million pounds), much less than the median forecast for a 305.0 billion yen surplus, finance ministry data showed. That was also well below a 612.7 billion yen surplus in February."
Apparently, the main beneficiaries of Abenomics are foreign companies importing their goods to Japan.
To read the entire article from Reuters, link here:
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