Next Phase of Abenomics: Rebuild Military and Destroy Yen

Now that Abe was won the supermajority needed to change Japan's pacifist constitution (Majority Win in Japan Points to Shift in Mood, Economy to Follow), will he use a military buildup to drive GDP growth and create inflation in the Japanese economy?

He has already returned to his old playbook of Abenomics: Japan Abe orders new stimulus package after election win
Abe did not give details on the size of the package, but Japanese stocks jumped nearly 4 percent and the yen weakened over perceptions a landslide victory in upper house elections now gives him a free hand to draft economic policy.

...The government was ready to spend more than 10 trillion yen ($100 billion), ruling party sources told Reuters before the election.

"We are going to make bold investment into seeds of future growth," Abe told a news conference on Monday at the headquarters for his ruling Liberal Democratic Party (LDP).
The yen tumbled more than 1 percent.

Although the United States worries about Chinese and Russian asymmetric weaponry, the greater threat to American power may be an innovative Japan that accelerates advancements in autonomous weapons systems.

The weak yen and low interest rates is already fueling debt sales.

Nikkei: Japan Inc. turns away from equity financing
In the first six months of 2016, listed companies issued 30.5 billion yen ($302 million) in shares in public offerings. That tally, down about 90% from the same period last year, is the lowest since 1998 -- when the stock market was in a slump after the collapse of major brokerage Yamaichi Securities and Hokkaido Takushoku Bank.

Companies are also buying back shares from investors, to slim down their capital on hand. Mobile service provider NTT Docomo has announced a 500 billion yen repurchase program. "We wanted this large size to improve capital efficiency," said Chief Financial Officer Hirotaka Sato.

Nissan Motor has said it will repurchase up to 400 billion yen in shares.

Repurchase programs announced in the January-June period totaled 4.22 trillion yen -- the most since the first half of 2003. Some 2.48 trillion yen of this has been implemented. Subtracting the amount of new shares issued, capital held by companies shrank by more than 2.4 trillion yen.

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