Going to be interesting how her government plays out. The bond market is not impressed by the late revival of Abenomics 2.0, but that’s not exactly bad news (yet) for Japan since they hold massive amounts of credit in the form of US treasuries ($1.1 trillion) which they can sell to prop up the Japanese yen for some time.
It’s bad news for the US though if there’s a sudden massive selloff of US treasuries. Fuel into the fire that Trump has lit.
Eurolib0908 on
Submission statement:
This article highlights a pivotal shift in Japanese governance. Prime Minister Takaichi’s snap election gambit, fuelled by her personal approval rating of 70%, aims to consolidate conservative control over institutions such as the National Diet, amid scandals that are eroding the market-friendly neoliberal dominance of the LDP. This ties directly to the policy debates that we often cover, pitting her push for military spending and fiscal stimulus to combat inflation, as well as stricter immigration caps and defence exports (which challenge free-market norms), against the new Centrist Reform Alliance’s “people-first” centrism, which blends economic realism with nuclear disarmament and inclusivity. Of particular interest is how her hardline nationalism is exploiting anti-globalist voter drift from traditional LDP bases to far-right upstarts, which could reshape markets and alliances amid U.S. pressures and China tensions. Readers should watch to see if this delivers LDP renewal or further weakens the neoliberal policy consensus.
Mugalgw on
Voters love when the government spends more money and lowers taxes. We’ll see how long governments can keep getting away with it in both Japan and the United States
4 Comments
She’ll probably hang on
Going to be interesting how her government plays out. The bond market is not impressed by the late revival of Abenomics 2.0, but that’s not exactly bad news (yet) for Japan since they hold massive amounts of credit in the form of US treasuries ($1.1 trillion) which they can sell to prop up the Japanese yen for some time.
It’s bad news for the US though if there’s a sudden massive selloff of US treasuries. Fuel into the fire that Trump has lit.
Submission statement:
This article highlights a pivotal shift in Japanese governance. Prime Minister Takaichi’s snap election gambit, fuelled by her personal approval rating of 70%, aims to consolidate conservative control over institutions such as the National Diet, amid scandals that are eroding the market-friendly neoliberal dominance of the LDP. This ties directly to the policy debates that we often cover, pitting her push for military spending and fiscal stimulus to combat inflation, as well as stricter immigration caps and defence exports (which challenge free-market norms), against the new Centrist Reform Alliance’s “people-first” centrism, which blends economic realism with nuclear disarmament and inclusivity. Of particular interest is how her hardline nationalism is exploiting anti-globalist voter drift from traditional LDP bases to far-right upstarts, which could reshape markets and alliances amid U.S. pressures and China tensions. Readers should watch to see if this delivers LDP renewal or further weakens the neoliberal policy consensus.
Voters love when the government spends more money and lowers taxes. We’ll see how long governments can keep getting away with it in both Japan and the United States