Saturday, January 15, 2011

2011 - Increasing Consumption Tax Rates signalled?

A shot of reality from this Bloomberg article comparing to the previous post about 2011 being a potential return to the bubble days

The Japanese Government is confronting a rapidly expanding debt situation by signalling potential Consumption Tax increase

While this may be a unavoidable consequence of Japan's fiscal situation, a rise in Consumption Tax will place increasing pressure on domestic demand - of course, the other point is that an improving fiscal situation will probably also have the impact of raising the value of the Yen; which will hurt Japan's export sector

Some difficult decisions coming for Japan in 2011

`Unhealthy' Japan Debt Picture May Boost Rates, Yosano Says - Bloomberg

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