Don’t Expect Japan’s Election to Foster Economic Turnaround

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Japan's Liberal Democratic Party, which is pro-stimulus, won a landslide election this past weekend, and some hope massive political change will spur an economic turnaround in Japan.

Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business Network's "Varney & Co." program Monday morning to discuss Japan's economic future.

Fitz-Gerald said the election itself was a "non-event," but Japan's Restoration Party led by Shintaro Ishihara gained about 50 seats and will put pressure on newly elected Prime Minister Shinzo Abe to enact some major policy changes.

Host Stuart Varney asked Fitz-Gerald if Japan implemented these changes - revising its constitution, spending more money on military and stimulus activities, and printing massive amounts of yen - will the country be able to get out of its economic funk?

"Unfortunately, no," said Fitz-Gerald. "They've got a demographic problem, they are dependent on exports - those are falling, the economy is contracting. They have increasingly few workers supporting a huge generation of retirees. This is a non-reversible window of opportunity."

As Varney pointed out, 25 years ago Japan was the "economic superman" of the world, but now there seems to be no way out of its decline.

What does this mean for the people and the economy's future?

Watch the entire accompanying video to hear Fitz-Gerald's analysis of Japan's post-election economy - including his insight on the new mentality sweeping over Japan's younger generation.