- Will not pursue reckless fiscal policy that undermines market confidence
- To push bold investment through multi-year budgets and long-term funds
- The necessary spending will be funded through the initial budget as much as possible
- Will steadily lower the debt-to-GDP ratio and restore fiscal sustainability
- To maintain market trust and clarify concrete fiscal indicators
- Will ensure policy discipline is defined as one that is responsible and proactive
Well, all I can say is that actions speak louder than words. As a reminder, Takaichi’s policies are a mirror to Abenomics – which was designed to tackle deflation. And right now, Japan is squaring off against inflation pressures instead. Piling on debt to an already inflationary economy will force Japan’s debt to be far more burdening when rates move higher.
And the other major point is that the math just doesn’t add up at the moment. Essentially, this is also part of the Takaichi trade amid concerns that Japan’s national debt will explode higher.”
So despite her calming words and her attempts to soothe markets, you can’t blame investors and traders for not buying into the gamble just yet. Essentially, Takaichi is trying to convince the naysayers that she can spend her way out this debt problem
