Japanese politics remain in their natural state, which is total disarray.
Prime Minister Noda of the DPJ is in a fight with the LPD because he wants to double the consumption tax. It’s a long-overdue, likely futile effort to reign in the national debt. Naturally, it’s extremely unpopular.
Dow Jones reports:
The opposition, whose support is essential in its passage, has shown no sign of budging, and is increasing pressure on the premier to call for a snap election.
An election would hurt the yen but I see almost zero chance of it happening and there is already some talk of LDP support.
Everybody knows that the first rule of getting elected is not to raise taxes. But the second rule is: always let the other guy raise taxes. You crush them in the subsequent election and you look like a genius when revenues improve.
