Over the weekend, Japanese finance minister Kan said he would like to use the consumption tax to fund welfare programs.
Back in the 1990s when Japan was trying to emerge from a long recession it raised the consumption tax and set off a further 15-year period of stagnation. Hard to imagine them making the same mistake again…
USD/JPY is trading with an easier tone after a bullish end of the week and Asian opening this week. We trade at 91.40.
