Japan launches massive stimulus package

Shinzo Abe: Bad guy done good?

The Japanese government has approved a massive emergency stimulus package, worth ¥10.3trn (£71.5bn), aimed at restoring growth in the long-stagnant economy.

The package will be used to fund infrastructure investment, disaster mitigation projects, subsidies for companies which invest heavily in research and development, and financial aid to small businesses. The government hopes to raise growth by 2 percentage points, as well as add over half a million jobs to the economy.

The prime minister, Shinzo Abe, also made clear again that he is planning to exercise far more direct control over Japanese monetary policy than is conventional. Before Abe was elected, he announced that the BoJ should embrace "unlimited easing" and cut interest rates below even the 0.1 per cent paid on deposits "to strengthen pressure to lend".

Today, Abe reiterated that pressure, telling a press conference:

We will put an end to this shrinking, and aim to build a stronger economy where earnings and incomes can grow. For that, the government must first take the initiative to create demand, and boost the entire economy.

Abe has no qualms with wild policy. Last week, he "nationalised" industrial stock in Japan, buying private infrastructure with public funds in order to force the pace of investment in the country.

It seems quite clear that Abe is prepared to use every possible channel available to him to push for a return to growth in Japan. The results have been positive so far; bond yields have stayed low, while the yen has finally dropped (which might be bad for the country's elderly, but is very good for its economy overall).

Paul Krugman argues that all of this success isn't exactly on purpose. It bears more hallmarks of Abe –  "a nationalist, a denier of World War II atrocities, a man with little obvious interest in economic policy" – doing exactly the opposite of what he's told to do based purely on his contempt for learned opinion:

It will be a bitter irony if a pretty bad guy, with all the wrong motives, ends up doing the right thing economically, while all the good guys fail because they’re too determined to be, well, good guys. But that’s what happened in the 1930s, too…

On the 22nd, the Bank of Japan will meet, and we'll see how much it listened to Abe. If it does follow his requests/demands for aggressive monetary policy, the country will solidify its reputation as one to watch in the immediate future.

Shinzo Abe. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Can the disciplined Democrats defeat Trump’s maelstrom of chaos?

The Democratic National Convention has been exquisitely stage-managed and disciplined. But is it enough to overcome Trump’s news-cycle grabbing interventions?

The Democratic National Convention did not begin auspiciously.

The DNC’s chair, Debbie Wasserman Schultz, was unceremoniously launched as if by an ejector-seat from her job on the eve of the convention, after a Wikileaks dump of internal emails painted a picture of a party trying to keep the insurgent candidate, Vermont senator Bernie Sanders, from blocking Hillary Clinton’s path to the nomination.

One email, in which a staffer suggests using Sanders’ Jewish faith against him as a candidate in order to slow his insurgent campaign, was particularly damning in its optics and Schultz, who had tweeted with some hubris about her Republican opposite number Reince Priebus during last week’s Republican convention in Cleveland, had to fall on her sword.

Clinton’s pick of Tim Kaine as a running-mate – a solid, safe, and unexciting choice compared to a more vocal and radical campaigner like Elizabeth Warren – was also criticised, both by the media, with one commentator calling him “a mayonnaise sandwich on wholewheat bread”, and by the left of the party, who still held out hope that the Democratic ticket would have at least one name on it who shared the radical vision of America that Sanders had outlined.

On top of that, Kaine, who is a Catholic, also disappointed many as a vice-presidential pick because of his past personal history of opposition to abortion. Erin Matson, the co-director of the reproductive rights group ReproAction, tweeted that Kaine being added to the ticket was “tremendously disappointing”.

On the other side, Donald Trump had just received a poll bump following a terrifying speech which recalled Richard Nixon’s 1968 convention address. Both speeches appealed to fear, rather than hope; many are calling Trump’s keynote his “Midnight in America” speech. Just before the Democrats convened, analyst par excellence Nate Silver and his site, 538.com, forecast Trump’s chance of victory over Clinton in November at above 50 per cent for the first time.

On top of that, Bernie Sanders more vocal supporters arrived at the Democratic convention – in Philadelphia in the grip of a heatwave – in relative force. Protests have already been more intensive than they were at the RNC, despite all expectations to the contrary, and Sanders delegates disrupted proceedings on the first day by booing every mention of Hillary Clinton’s name.

But then, things appear to turn around.

The second day of the convention, which saw Hillary Clinton formally nominated as the first female presidential candidate in American history, was less marred by protest. Bernie Sanders addressed the convention and endorsed his erstwhile rival.

Trump’s inability to stop prodding the news cycle with bizarre non-sequiturs turned the focus of what would otherwise be a negative Democratic news cycle back onto him; an unforced error which led to widespread, if somewhat wild, speculation about his possible links with Putin in the wake of the news that Russia had been behind the email hack and lightened some of the pressure on the Democrats.

And then Michelle Obama took the stage, delivering an oration of astonishing power and grace (seriously, watch it – it’s a masterclass).

Compared with the RNC, the Democratic National Convention has so far been exquisitely stage-managed. Speakers were bookended with pithy, designed-for-virality videos. Speakers started on time; headliners played in primetime.

Both Trump and Clinton have now addressed their conventions before their headline speech remotely, via video link (Trump also engineered a bizarre early-convention pro-wrestling-style entrance), which put observers of both in mind of scenes from V for Vendetta.

But the imagery of Clinton’s face appearing on screen through a graphic of shattering glass (see what she did there?) will likely be one of the moments that sticks most in the memory of the electorate. It must kill the reality TV star to know this, but Clinton’s convention is getting better TV ratings so far than the RNC did.

Michelle Obama’s masterful speech in particular provided stark contrast with that of Melania Trump – an especially biting contrast considering that parts of the latter’s speech last week turned out to have been plagiarised from the former. 538’s forecast saw Clinton slide – barely – back into the lead.

A mayonnaise sandwich Tim Kaine might be, but he is nonetheless looking like a smart pick, too. A popular senator from a key swing state – Virginia – his role on the ticket is not to be a firebrand or an attack-dog, but to help the former secretary of state reach out to the moderate middle that Trump appears to be leaving entirely vacant, including moderate Republicans who may have voted for Mitt Romney but find Trump’s boorish bigotry and casual relationship with the truth offputting. And the electoral mathematics show that Trump’s journey to victory in the electoral college will be extremely difficult if Kaine swings Virginia for Clinton.

Ultimately, the comparison between the Democratic convention in Philadelphia so far and last week’s chaotic, slapdash and at times downright nutty effort in Cleveland provides a key insight into what this election campaign is going to be like: chaos and fear on one side, but tight discipline on the other.

We will find out in November if discipline is enough to stop the maelstrom.

Nicky Woolf is a writer for the Guardian based in the US. He tweets @NickyWoolf.