New Maths: 2 + 2 = 4

There have been several news reports that the GOJ has failed disastrously in its bid to raise much needed funds on the local market to take care of general housekeeping expenses.

The reports are that the GOJ attempted to float bonds to the tune of some $24B; but only approximately $1B was realized.

Subsequently, BOJ was forced to “hold the bag” and take up the unsubscribed securities. The BOJ’s action was described spun as “temporary finances” and “advances”. One financial analyst has said that such are euphemisms for the printing of money.

Now follow the argument: Having put approximately $23B (unsupported) into the economy, the GOJ is then forced to extract/withdraw a similar amount before it attempts to broker an agreement with the IMF. The latter does not “kin teeth” with lax financial management.

We have asked this question before. We ask it again. Is this the real reason for the amount and timing of the recently announced tax packages? Or is it merely an unfortunate coincidence?