Japan to unveil huge stimulus package

[Bonobo]

Source: AFP

TOKYO — Japan planned to unveil a huge new stimulus package as early as Friday to shore up the world's second biggest economy, whose fragile recovery is threatened by a strong yen and deflation.

The Nikkei business daily and Kyodo news agency, citing unnamed officials, said the package would be worth 24 trillion yen (272 billion dollars), of which 7.1 trillion yen (80.5 billion dollars) would be actual spending.

The package would fund an eco-point reward programme for energy-efficient appliances, extended loan guarantees for small and mid-size businesses and spending to help recession-hit companies retain workers, the Nikkei said.

Japan's economy grew 4.8 percent on an annualised basis in the July-September quarter, the fastest growth in two and a half years, according to preliminary data from the finance ministry released last month.

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[47of74]

1. I must have too much Stephanie Miller on the brain...

...because I thought of a certain type of package.

[juno jones]

3. And i've been working in restaurants too long.

I think I had the same mental picture of the huge package unveiled.

Great minds think alike eh? :hi:

[Ghost Dog]

2. Japan May Delay Stimulus Package Amid Coalition Rift

Dec. 4 (Bloomberg) -- The Japanese government may delay an economic stimulus package after members of Prime Minister Yukio Hatoyama’s coalition said the proposed plan was insufficient.

“It probably won’t come together” today, Mikio Shimoji, head of policy research at the People’s New Party, told reporters in Tokyo. The head of the Social Democratic Party, also a minority coalition member, said the government was still debating the plan.

PNP leader and Financial Services Minister Shizuka Kamei has urged for spending of at least 8 trillion yen ($90 billion). Hatoyama’s Democratic Party of Japan had planned a package of as much as 4 trillion yen, Finance Ministry officials familiar with the matter have said.

Kamei “won’t relent on the 8 trillion yen figure,” Shimoji said, adding “We’ve put negotiations on hold.” He said signs the economic expansion has been weakening mean the government will need to spend more than planned.

“We’re in deflation, so we need something quantitative,” Shimoji said. “We think that unless it’s around 8 trillion yen, the economy won’t respond. They have no choice but to bow down,” he added, referring to the DPJ.

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