Japan to dissolve parliament, hold snap elections after news of recession

[Aepsilons]

Tokyo (CNN) -- Japanese Prime Minister Shinzo Abe has called for snap parliamentary elections for next month, following news that the country had slipped into a recession.

Abe also announced an 18-month delay in a controversial sales tax hike during a press conference Tuesday.

The prime minister said he will dissolve the parliament's lower house on Friday.

The Japanese economy slipped into recession in the third quarter.

Japan to dissolve parliament after news of recession - CNN.com

 

[Aepsilons]

@Nihonjin1051 's response:

 

[senheiser]

japan should fix their economy first instead playing americas puppy. The least japan needs are sanctions against potential energy suppliers

 

[Viet]

I´m speechless.

 

[TaiShang]

Tokyo (CNN) -- Japanese Prime Minister Shinzo Abe has called for snap parliamentary elections for next month, following news that the country had slipped into a recession.

Abe also announced an 18-month delay in a controversial sales tax hike during a press conference Tuesday.

The prime minister said he will dissolve the parliament's lower house on Friday.

The Japanese economy slipped into recession in the third quarter.

Japan to dissolve parliament after news of recession - CNN.com

Maybe he thinks it is better now than later because economy will get worse down the line. Better use up the political capital in a snap elections than long after the heavy reality (that Abe's economic policies might not be living up to their hype) sinks in.

 

[Aepsilons]

japan should fix their economy first instead playing americas puppy. The least japan needs are sanctions against potential energy suppliers

Next year, the reactors go back online. Our dependence on foreign energy sales will go down. And rightly so.

 

[INDIC]

Tokyo (CNN) -- Japanese Prime Minister Shinzo Abe has called for snap parliamentary elections for next month, following news that the country had slipped into a recession.

Abe also announced an 18-month delay in a controversial sales tax hike during a press conference Tuesday.

The prime minister said he will dissolve the parliament's lower house on Friday.

The Japanese economy slipped into recession in the third quarter.

Japan to dissolve parliament after news of recession - CNN.com

Why a snap election, frequent elections is not a good thing in a parliamentary system.

 

[Aepsilons]

Why a snap election, frequent elections is not a good thing in a parliamentary system.

A vote of confidence.

I am quite perplexed on politics at home to be honest. Politics here in the 'states is also equally vexing.

 

[senheiser]

Next year, the reactors go back online. Our dependence on foreign energy sales will go down. And rightly so.

nope, you needed foreign energy even when reactors were up.

 

[Aepsilons]

nope, you needed foreign energy even when reactors were up.

True, we did but ever since 2011, Japan had become totally dependent on energy imports, so much that our carbon emissions had increased to unheard of levels. We must revert back to nuclear power, this will substantially decrease energy imports and can ameliorate carbon emissions to acceptable levels for Japan.

 

[TaiShang]

True, we did but ever since 2011, Japan had become totally dependent on energy imports, so much that our carbon emissions had increased to unheard of levels. We must revert back to nuclear power, this will substantially decrease energy imports and can ameliorate carbon emissions to acceptable levels for Japan.

I guess the drops in oil prices eases the burden, given that Japan's consumption is pretty much flattened/stable.

The energy issue makes sense warmer relationship with Russia. Interestingly, Japan's economic woes very much obliges it to greater relations with Russia and China. But, again interestingly, Japan is far from utilizing an otherwise promising regional dynamics.

Edit: Oil blessing may not last long, though:

Russian ruble recovering against US dollar as oil heads back to $80 — RT Business

The Russian currency started to bounce back in Tuesday trading, as oil prices edged closer to $80 per barrel, an important benchmark that was crossed last week.

The US dollar lost 28 kopecks to 46.82 rubles at 10:55 Moscow time (07:55 GMT) going below 47 rubles for the first time since last week. The Central Bank of Russia also cut its official rate for the American currency for Wednesday, dropping it by 35.32 kopecks to 46.98.

READ MORE: Russian ruble ‘has potential for strengthening’ despite low oil prices – Central Bank head

The price of oil is also recovering, with Brent December futures climbing above $79 per barrel heading to an $80 per barrel threshold.

READ MORE: Brent tumbles below $80 threshold as OPEC surplus continues

Market players have a positive view on oil, Vasily Karpunin, BCS brokerage analyst said.

"After the expiration of December contracts, a traditional rebound has started. High chances remain for a full-fledged [upward] correction. The next growth target is in the range of $85.5-86.5 per barrel for Brent crude," he said.

On Tuesday the head of the Central Bank of Russia Elvira Nabiullina confirmed the regulator was ready to intervene unexpectedly and on a large-scale, in case risks to financial stability arise.

"The Central Bank does not waive its right to intervene any moment in order to maintain financial stability. We warned the players we are ready to make unexpected interventions in case of negative developments," Nabiullina told the State Duma.

The Russian currency was demonstrating attempts to strengthen already on Monday, as TASS quotes Alexei Yegorov, leading analyst of Russia’s Promsvyazbank. He says the ruble's upward correction is caused by exporters selling currency on the eve of a new tax period.

Experts suggest that the new financial tool started by the Central Bank of Russia (CBR), known as currency repos (repurchase agreements), have also helped stabilize the market. On Monday the CBR began auctions in 1-year repos worth $10 billion. This followed $50 billion short–term repos that Russia’s regulator started selling in late October.

 

[tranquilium]

A vote of confidence.

I am quite perplexed on politics at home to be honest. Politics here in the 'states is also equally vexing.

There are some similarities on the issues. The core similarity between Japan and US' recent political peculiarity is that both governments are expected to serve the interest of multiple groups that all have conflicting agendas. There are powerful financial backers, who expect return of their investment. (Neither Abe or Obama could afford to antagonize these at all) There are voters, who expect fulfillment of promise and in Japan's case, there is expectation of foreign parties, which expect fulfillment their interest.

A lot of these interest require completely different, even contradicting responses. For example, for Japan to fulfill the need to strength its overall economy (if not necessarily the interest of business elites) and secure its energy supply, it will have to improve relationship with China and Russia. This is entirely contradicting US' expectation, which involving Japan serving as a proxy against China and Russia.

Similarly, Obama's recent health care reform is an act to fulfill the expectation of voters (more specifically the expectation of improved health care), but it is actually contradicting to the expectation of economic improvement, which requires the government to spend less and raise taxes to reduce the debt problem.

Basically, when you are trying to appeal to multiple groups of people that you cant afford to antagonize, you are trapped between a rock and a hard place.

 

[Galad]

Abe needs to go.And take with him any officials even remotely engaged in implementing of so-called "Abenomics" .BoJ officials also need to go(yeah,yeah i know not gonna happen) .They are completely clueless how to put Japan on the road of steady expanding economy or at very least stop constant sliding of Japan back in recession.Rising of taxes,never-ending QE(which actually hurt real economy) and full monetization of debt are not answer to fix Japan problems .Also engaging either on their own or under orders by USA in confrontations with Russia,South Korea and China do not really help at all.