Posted on 11/18/2014 10:41:06 AM PST by blam
November 18, 2014
Raul I Meijer
What is it with us? Don’t we WANT to understand? Japan announced on Monday that its economy is in hopeless trouble and back in recession (as if it was ever out). And what do we see? ‘Experts’ and reporters clamoring for more stimulus. But if Japan has shown us anything over the past years, and you’re free to pick any number between 2 and 20 years, it’s that the QE-based kind of stimulus doesn’t work. Not for the real economy, that is.
The land of the setting sun has during that time thrown so much stimulus into its financial system that Krugman-esque calls for even more of the same look even more ludicrous today than they did all along. Abenomics is a depressing failure, just as we knew it would be since it started almost two years ago. It’s not complicated, and it never was.
Japan’s stimulus has achieved the following: banks get to pretend they’re healthy and stocks rise to heights that are fundamentally disconnected from underlying real values. On the flipside of that, citizens are being increasingly squeezed and ‘decide’ not to spend (not much of a decision if you have nothing to spend). Since Japan’s ‘consumer’ spending makes up about 60% of GDP, things can only possibly get worse as time passes. If ‘consumers’ don’t spend, deflation is the inevitable result – and that has nothing to do with the much discussed sales tax, it’s been going on for decades -.
Therefore, the sole thing QE stimulus has achieved is a wealth transfer from poorer to rich. And that’s not only the case in Japan.
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
The definition of insanity........................
I’m sure China will help, for a price.
There really is no excuse but to reform the Japanese military, allow interest rates to rise again so that saving money means something, and take the huge economic hit.
Cameron Says Second Global Economic Crash Is Loomin, Japan In Recession
ECB Buy Gold Bullion? Japan's Monetary Policy Dubbed "Ponzi Scheme"
That, coupled with their 1.4 fertility rate (2.1-ish needed for population replacement), is going to sink them, I’m afraid...
There are more adult diapers sold in Japan today than there are infant diapers.
And to think about 30 years the political pundits and the economic forecasters told us that Japan would soon overtake the US in terms of output per person, that our children should learn Japanese,and so forth and so on.
Same could be said for our Country
Demographics is hardly ever discussed yet that is the reason most civilizations fail. The US is held together by an Hispanic birthrate. White birthrate is 1.6..........
Yup. I remember that. They bought 'everything' but mostly lost money on it.
(Posted to FR 10 years ago)
How strange. We have a critique of Japanese economic instability and there’s no mention of the Yakuza.
“Anything else is simply Grand Theft Auto.”
All of these “stimulus” plans are doing exactly as they were intended to do. ASSET STRIP THE NATION AND THE PEOPLE.
see Moneychangers
Our country is doing the same things.
who wants to have children in a country where they are sex objects?
What happened? Japan was the eipitome of wealth 20 years ago, with nothing stopping them.
heavy debt gets to anyone
“banks get to pretend they’re healthy and stocks rise to heights that are fundamentally disconnected from underlying real values.”
Sounds familiar.
now we buy our trinkets from China, cloth from India and cars from Korea
Japan was kind of left behind except for online anime porn, they still dominate that industry
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