We know what’s coming and we are prepared.
🇯🇵 Here is what's going on with Japan's massive stimulus package and why everyone's freaking out about it right now.
The timing and scale of this is genuinely significant and there are real implications for global markets and the yen that go way beyond just Japan (save this).
Japan just approved a ¥21.3 trillion economic stimulus package, the biggest since covid to help households deal with rising costs and try to jumpstart their economy after it shrank 1.8% in Q3. The package includes ¥17.7 trillion in fresh spending through an extra budget plus ¥2.7 trillion in tax cuts. When you add in local government spending and private sector investments the total impact balloons to ¥42.8 trillion. That's substantially bigger than last year's ¥39 trillion package.
The government is throwing money at everything, ¥20,000 cash handouts per child subsidies for electricity and gas bills (about ¥7,000 per household over three months), rice vouchers, scrapping the provisional gasoline tax, and raising the tax free income threshold. They're also pumping billions into strategic sectors like AI, semiconductors, and shipbuilding. Prime Minister Sanae Takaichi who just took office last month is going full fiscal dove mode and markets are not exactly thrilled about it.
Here's where it gets messy. Japans debt is already over twice the size of its economy, literally the worst among developed nations. This massive spending spree means they need to issue even more government bonds, probably exceeding the ¥6.69 trillion they borrowed last year. That's spooked bond markets hard. Japanese government bonds yields have hit record highs. And the yen? It's gotten crushed, hitting 10 month lows around 157 per dollar.
So what does this all mean? In the short term, Japan's stimulus is creating chaos instead of clarity. Bond vigilantes are punishing Japan for fiscal recklessness by selling JGBs and yen. The market is worried about Japan's deteriorating fiscal health and what happens when you have massive government spending combined with potential central bank tightening. That uncertainty is bleeding into global risk assets across the board.
The implications are pretty significant. If Japan's fiscal situation continues to deteriorate and they keep issuing bonds at this pace, it could force the Bank of Japan's hand on rate hikes sooner than expected. That would strengthen the yen and potentially trigger selloffs across equities and bonds in the US. We saw a preview of this in August 2024 when the BOJ unexpectedly raised rates and triggered a global market freakout with the Nikkei dropping 12% in one day.
On the flip side if the stimulus actually works and injects enough liquidity into the system without triggering a BOJ rate hike, it could eventually be positive for risk assets as yen weakness drives capital into alternative investments. But that's the optimistic case and depends on a lot of things going right namely the BOJ staying accommodative while fiscal expansion does its job.
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It's easy to mock this guy, laugh at him, say it's always Gingers etc.
However why are we not asking why, as a society, young men are making life choices like this?
Same as anyone who chooses to go against our natural order with how they live.
Something has gone badly wrong.
“Oregon is using satellites to hunt small farms.”
Farmer Justin Rhodes says the state redefined “CAFO” so even 3 cows and a milking stand count as a factory farm.
Cease-and-desist letters. $100K “upgrades.” Family farms shut down.
Follow @zeeemedia
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“The fetal bovine serum is just disgusting, and it’s in almost every viral vaccine. They harvest it by inserting a needle into the beating heart of a baby cow to extract its blood. Where is PETA when you need them? The FDA even admits they use ‘cow parts’ because cows are large and have a lot to use.”
@NoAgendaLara
Remember when the 6-year-old Black kid shot his White teacher in a premeditated murder attempt, after which he said "I shot that b&tch dead" - and then the anti-White media covered the story with stock photographs of a White child?
The teacher just won a $10 million judgement against the school's vice principal, Ebony Parker, a Black woman who knew for hours that the boy had the gun in his backpack and had vowed to kill people, having been told so by numerous teachers, yet did absolutely nothing but allow it to happen.
The district itself was previously granted immunity, but the teacher's attorneys have indicated their intent to continue pursuing the district.
🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶
