acting-man.com / By Pater Tenebrarum / March 14, 2013
Iwata (Barely) Gains Sufficient Support
It appears as though Shinzo Abe will gain the necessary support for all three of his nominees to the top posts at the BoJ. Among the people he has picked as his preferred deputy governors Kikuo Iwata is probably the better known. Iwata actually suggested that the BoJ’s independence should be curtailed by a new law, giving the government the right to fire board members it doesn’t like. This has cost him the support of the opposition party DPJ, whose ‘policy chief’ Mitsuru Sakurai commented as follows:
“His views on changing the BOJ law, especially allowing for firing people, is a complete violation of the BOJ’s independence,” Sakurai said yesterday. “Iwata is unacceptable as deputy governor.”
Even though we believe the current centrally planned monetary system to be harmful such as it is already, it would no doubt be even worse if central bank independence were sacrificed. Not that it really matters in this specific case – Iwata will be supported by the smaller parties in the Diet, and together with the LDP’s votes his candidacy is therefore expected to be confirmed.
With that the two biggest monetary pumpers that could be found in all of Japan are almost certain to be appointed. This raises the question where the third nominee stands.