Japan Consumption tax: Not now!
Katz says "Japan is under psychological depression!"
Richard Katz Editor of the well know "Oriental Economist"Richard Katz shouted at prime minister Noda about the 100% increase of the consumption tax: "Total Nonsense" says the Editor of the Oriental Economist at the press club today. Katz describes the tax as the "wrong tax at the wrong time." The problem according to the influential newsletter's editor is that Japan "is not growing and that low growth expands deficit."
Good news? Japan's assets are huge, 60% are overseas, Japan is not Greece, it is the third economic power. But an increase of consumption tax is risky and can cause a recession. Let's hope the benefit of the tax does not only go to the firms and forget the people... He considers the Japanese media are too lenient vis a vis the Japanese ministry of Finances. "Reporters repeat things without really understanding what they are talking about" or he told also are complacent with their self censorship...
Japan he said is now under a psychological depression. " Car sales are down by half compared to 10 years ago"? Really? He also said that people do not have money to spend and consume and use their savings, 5 to 10% of it. So why charge the consumers with a 100% tax to come? On Fukushima Katz reminded the audience that 84% of Japanese don't trust the government on the "cold shutdown".
Maybe the Osaka Mayor Toru Hashimoto or an other charismatic leader is now expected by voters says Katz who definitely appears to the public as an ice-cube in the coke. Refreshing! We exchanged "名刺" meishi together.