That nice Mr. Abe has been working so hard to make his Abenomics work that it seems a shame that not everyone supports it. In fact, some people, like this writer below, can’t see the point of a 2% inflation target at all. Why ever not? He obviously hasn’t read Milton Friedman and is therefore obviously an ignoramus. Anyway, here’s the quote:

‘Inflation’, i.e., consumer prices, appear to be the only thing that is in a fairly strong uptrend by Japanese standards anyway. We can therefore remain fairly certain that real incomes continue to decline. Considering the aging population with ever more people relying on some sort of fixed income, the BoJ’s inflationary policy makes even less sense in Japan than elsewhere. For unknown reasons rising prices are hailed as a ‘success’. We know of approximately 127 million Japanese consumers who would disagree.

In fact, it feels totally bizarre to read about this every time. Consider the formulation in the excerpt from Reuters below: “Nationwide consumer prices showed that inflation picked up in April, excluding the April 1 sales tax hike – a welcome sign in the Bank of Japan’s battle to bring inflation to 2 percent.”

A central bank ‘battling’ to increase inflation? It is a ‘welcome sign’ when consumer prices are rising? All we can say to this is that it proves that world has gone mad and that there is nothing more absurd than the economic theories on which modern central banking is based.

via Another Setback for Abenomics |.