Interesting post, which I mostly agree with – structural reforms are needed to support the monetary easing policy, which is exactly what Abe's government is trying to form these days.

Agreed, as Abe's been promising from day one, and slowly delivering – it's just that his pace and mentality, being Japanese, isn't much to the liking of the "fix it quick" advocates from the West. We've discussed this previously – you can't turn Japan's farming industry on its head and strip its useless subsidies overnight – you'll be catapulted out of office in a heartbeat if you do (to name just one such example) – but slowly preparing the groundwork for such a reform with statements such as "we aim to revise the farming industry to render it competitive and modern" means that's exactly where he's headed.

That's only if the tax hike is the only stabilizing component of the agenda. It's not (see above example and the rest of the announcements, even further above). There'll be more to come, guaranteed – but again, you'll have to pace down to Japanese frames of change – they're not as quick as they are in the west. Neither are corporate spending habit changes, for that matter.

No, that's not the mantra, it's actually far more detailed than that, with QE and financial stimulus being just part of the process – the rest, as demonstrated well these past few months, consist of structural reforms, including a much needed boost of the workplace in the form of women returning to it (75% of women, which are more than 50% of the population are currently not), further immigration reforms, corporate tax re-structuring, as mentioned in the post above, and other components elaborated upon in this discussion and others. Richter's simplistic, cynical view, which you share, is just that – simplistic and cynical. While I agree that 2% annual growth is over-optimistic, as are the timeframes and general rosy view the government tries to "sell", it's also very far from the total collapse some predict. Other, more balanced viewers, like Soros, GS, Deutsche Bank, Switzerland's largest bank and many other are already voting with their funds and will continue to do so. While Abenomics may not be "salvation", it's certainly the best chance at a reasonable and calculated return to growth that Japan's had for several decades.

Abe keeps heading in all the right directions – http://ajw.asahi.com/article/economy/AJ201307010067 –

http://www.japantimes.co.jp/news/2013/06/13/business/abe-vows-to-draw-up-tax-steps-by-fall-to-boost-business-investments/#.UhqoJ0B-PmQ –

https://www.moodys.com/research/Moodys-changes-outlook-on-Japans-real-estate-sector-to-stable–PR_277176?goback=.gde_2060426_member_243882374

As mentioned, our favourite residential investment areas (Fukuoka, Kumamoto and the rest of Kyushu) have already gone up 30-50% in our bracket (entry level, older blocks, studio and one-room apartments built 1974-1995) – meaning, deals that were available at $20,000 total purchase costs in those areas are now at $30,000 and rising. Rents have risen accordingly so far, so yields are still there to be had, but entry levels have gone higher. The $20,000 deals can still be found, but not in the top areas anymore (now finding them in Kitakyushu, Kurume, and occasionally Nagasaki). Other high yield locations that can be had for $30,000 and up are the outskirts of Kobe, Toda (which is a small town adjacent to Tokyo on the NW side – still virtually unknown to foreigners, but closer than either Kawasaki or Yokohama, surprisingly enough), and Sapporo city in Hokkaido – although, deals there are being snatched within a matter of days or sometimes hours, so feels like prices will return to their pre-3/11 levels in no time – most likely the drop there is due to the drop in international tourism post-Fukushima – which is now beginning to taper off, as tourists return to the area. As more and more banks, pension funds, and high-net worth families and REITs from Singapore and Hong-Kong have also been increasingly active in the last few months, it's more than likely things will continue to climb, at least for the next 2-4 years, as Moody's suggest – our impressions are similar.

Love you, Freckle, really do.

Alright, I'll bite – please lay down the freckle formula for a new and improved Japan. I'm all ears.

Good luck with that notion, Freck  you might want to hedge your bets a bit, if you truly believe all of what you just wrote.

Yes, but it's not just "making an economy look good" – these "feelgood" vibes are actually directing money into the country. Consumer and business confidence aren't uselses airy-fairy measures – they show potential for future growth as much as any other figures. Speaking of potentially "good vibes" that boost growth, here's another recent one – Coutts are also banding in with Soros and GS in betting on Japan – Coutts Push Japan in Private Wealth Singapore Summit