BNP Economist Goes Against the Grain Stating Samurai Abe’s Policies Will End Badly

“….The consensus view among economists and analysts is that a weaker yen, driven by recently-elected Prime Minister Shinzo Abe’s stimulative fiscal and monetary policies, will be great for the Japanese economy. They represent a fighting chance to overcome deflation for the first time in a long time.

Ryutaro Kono, the top Japan economist at BNP Paribas, takes a decidedly different view on “Abenomics,” as these new policies have been dubbed.

Kono writes in a note to clients, “Fiscal expansion only boosts growth while it is happening. When its effects fade, what remains is likely to be a sluggish economy with high inflation, coupled with public debt so swollen that the probability of a fiscal crisis soars.”

Here is the roadmap to how “Abenomics” in 2013 translates to fiscal crisis in 2015, according to Kono (emphasis added)….”

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