ABENOMICS

Some Facts : Best of

Abenomics Synopsis

• Year-over-year the is Yen down 21.82% vs. the US Dollar
• Japanese consumer prices are still falling
• Imports jumped 9.4%, up for a sixth straight month
• Exports up 3.8%
• Trade balance negative for 10 straight months
• Largest April trade deficit since 1979

People think Shinzo Abe is a hero because the Nikkei is up.

I think Abe is an absolute economic nutcase who is going to create a currency crisis in Japan if he succeeds in changing the constitution like he desires (and quite possibly even if he doesn't).

See also our website :  Japan : Plan ‘jg’ B

Abegeddon

So, what’s behind this jarring surge in yields, which occurred even as the BoJ began to roll-out its aggressive purchase program? 

In Japan, the term Banzai! literally means “ten thousand years” and can be used to wish someone long life and happiness. But during World War II, “Banzai!” was shouted in battle. It was the Japanese equivalent of “Long live the king!” – but to soldiers on the other side it came to mean a suicidal, hell-for-leather attack.

If the central bankers of the world think they’re hearing a battle cry of “Banzai!” from the lips of their Japanese brethren, they may not be far from wrong, because the Japanese are indeed on a mad charge to fight deflation at all costs. As with all good suicidal charges, at least in legend and lore, once the cry has gone up and the thundering charge has begun, there can be no turning back.

SEE  BANZAI ! Abegeddon and  

there

                         

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Edition

                        
                                                      
                                

Krugman tempted to support Abe : Not Enough Inflation

Olivier Delamarche : 05.21.2013

On assiste en direct au décès du Japon et tout le monde se réjouit. Ça se paiera dans un bain de sang. Ça va se traduire par un effondrement total de la monnaie, la République de Weimar mais au Japon. Bernanke est obligé de continuer les QE, s’il arrête ça sera un effondrement économique. 

As the BoJ prepares to thrill us with even more in its latest policy meeting the following brief presentation covers it all . Christine Hughes sums it all up perfectly, for Japan, "The Math Is Stacked Against Japan - It's Not 'If', It's When." 






Investors, take note… the financial system is sending us major warnings..

Two big events have occurred/ are occurring.
1) Chicago Fed President, Charles Evans who is one of the biggest pushers for QE, stated that the Fed has “the appropriate monetary policy in place” and that the economy is “improving quite a lot.”

2 )The Bank of Japan declaration after a two-day policy meeting.

Regarding #1, Evans has been one of the biggest pushers for more QE. So for Evans to suddenly change his tune and state that the Fed’s current policy is “appropriate,” indicates a significant shift in tone. This goes along with the Fed’s recent hint at tapering QE, which we’ve noted before on these pages. It’s now becoming more and more clear that the Fed is planning on tapering QE in the coming months and is trying to manage down investor expectations.
Which means that stocks are going to be losing some (not all) of their life support.

Regarding #2, The Bank of Japan raised its economic assessment at the end of its two-day meeting on Wednesday, while holding its policy unchanged. The central bank said the measures would continue “as long as it is necessary” to achieve its goal of a stable inflation rate of 2%. It also said that the policy board had voted down a proposal by one member to set a “time frame of about two years” for its “intensive” quantitative easing.

As noted yesterday, Japan is Ground Zero for the great QE experiment. For decades now, Bernanke and his pals have claimed that the biggest problem with the Fed’s actions during the Great Depression was that it didn’t do enough.
Japan, which has now engaged in NINE QE efforts, has finally hit the “enough” stage by announcing a record $1.2 trillion QE plan. To put this in perspective, Japan’s economy is $5.86 trillion, so this single QE effort is equal to 20% of their GDP.

If this plan fails to bring about economic growth in Japan, or worse still fails to bring about growth and unleashes inflation, then it’s GAME OVER for Central Bankers.


FALLING YEN

After Japan's Crash…

Will Japan Trigger a Global Financial Meltdown? Japan’s bond market is officially losing control.We have definitely taken out the multi-year trendline here, making a new high higher after a higher low. This is BAD news as it indicates that Japan’s bond market could be entering a cyclical downturn.  see our website 

If this happens then the great global bond market rig of the last five years is coming to an end. Most analysts have been ignoring bonds because stocks are at record highs.As Japan has indicated, when bonds start to plunge, it’s not good for stocks. Today the Japanese Bond market fell and the Nikkei plunged 7%. The entire market down 7%... despite the Bank of Japan funneling $19 billion into it to hold things together.

Don't get spooked by nowaday's action. Too many investors are easily "brainwashed" when markets move in one direction for too long. Anyone who thought stocks would never have an off day is waking up on the wrong side of the bed today…