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Japan posts Y216 billion trade deficit in May

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A 1% expansion in the world’s number three economy between January and March—or 3.9% on an annualised basis—was sharply up from an initial estimate of 0.6% growth.

This is what is most important forget about all other data :(

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What do countries with trade deficits do? They print cash to cover the loss.

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Japan runs a current account surplus though (for now). So the trade deficit alone is not the end of the world. Japan is a big creditor nation.

It's only the government that is virtually bankrupt and financed by the BOJ's printing presses.

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At the same time the Abe administration is quite content to spend billions of yen on the military to 'help' foreign troops involved in conflicts outside Japan. Don't worry it's only your (tax) money that is being spent....

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The financial markets are very efficient yet many here say otherwise. Global markets don't wait for the man on the street views of economics. Are you honestly smarter and more knowledgeable than the credit default swap; long term interest rate and international bond rating markets?

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Are you honestly smarter and more knowledgeable than the credit default swap; long term interest rate and international bond rating markets?

All three of these markets were rigged by insiders so were actually very inefficient so that the few could make massive profits. Markets are man made systems, not divine interventions, that are subject to man made corruption. This is how the real world works.

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Would be interesting to know how much of the trade deficit money is in fact flowing directly to the overseas subsidiaries of the big Japanese trading companies. These companies have huge stakes in energy projects around the world, and the production of these projects, particularly of coal and natural gas, is then "exported" to Japan.

It's only the government that is virtually bankrupt and financed by the BOJ's printing presses.

It is only the government of Japan that has the legal right to issue the Japanese currency. It finances itself by issuing that currency, which it can issue in as large or as small a quantity as it wants. It is, same as for all currency issuing countries, impossible for it to go bankrupt. The Bank of Japan has nothing to do with financing the Japanese government, although it likes to pretend it does with its QE shuffling of money between accounts. Also, no "printing presses" are involved, that is just a figure of speech used by lazy and incompetent journalists. The money is electronic.

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GJD, good point in the first paragraph, pity about the second.

It is only the government of Japan that has the legal right to issue the Japanese currency.

Japanese yen notes are issued by the Bank of Japan, not the government. Anyone who thinks their yen notes with "Nippon Ginko" written on them are counterfeits is welcome to hand them over to me.

The government issues Japanese yen coins (with "Nippon Koku" written on them), but that's it. There is no evidence of anything other than this.

It finances itself by issuing that currency, which it can issue in as large or as small a quantity as it wants.

The money is electronic.

The government does not have the ability to counterfeit electronic money in the way that you claim.

The Bank of Japan has nothing to do with financing the Japanese government, although it likes to pretend it does with its QE shuffling of money between accounts.

It isn't "shuffling" money, it is putting new money in those accounts. When the BOJ buys ETFs , J-Reits, etc, it just uses new electronic money to do so. It does not get this new money from the government, it "creates" it itself by adjusting the numbers.

You are welcome to provide actual proof of the government doctoring the numbers in its own account at the BOJ to corroborate your allegations about how it finances itself.

You are welcome to report the BOJ to the police for counterfeiting money in both accounts held at the BOJ and those represented by Japanese yen notes with "BOJ" written on them.

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@fxgai Who said anything about Japanese "notes"? The statement referred to the Japanese yen. If you think the quantity of Japanese banknotes represents the amount of yen in circulation, then you can arrange for everybody to go and exchange their bank deposits for notes at the same time. It would take 2 minutes for the cops to show up and the doors to be locked on every bank in Japan.

And there is no electronic " counterfeiting going on, only your continued denial of how the financial system works in every country, and always has.

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Japanese banknotes are a portion of the amount of yen in circulation, and despite claims to the contrary, aren't issued by the government of Japan (same as with the electronic money).

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What claims to the contrary? Japanese banknotes are issued by the Bank of Japan, in exchange for existing yen deposited in the banking system. They are not given away. They are basically non-interest bearing government bonds. The yen itself is issued when the government of Japan spends it into existence, and together with bank credit created by the private banking system, you have your money supply. Not rocket science.

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They are basically non-interest bearing government bonds.

Bascially, in your imagination maybe.

But the government doesn't issue them, the BOJ does. If you take a BOJ banknote to your bank and deposit it, your bank will credit your account. If your bank has too many banknotes at the end of the day it will take them to its local branch of the BOJ, and have the bank's account at the BOJ credited (and these banknotes go out of circulation). It's not like the bank's account at the BOJ is being credited with money from the government's account at the BOJ when that happens. It's none of the government's business.

The yen itself is issued when the government of Japan spends it into existence

The government is not issuing the yen when it spends it, the government's spending of money and the BOJ's issuing of it are distinct operations. Not rocket science, nor a big secret.

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@fxgai

"It's only the government that is virtually bankrupt and financed by the BOJ's printing presses."

Which would mean the meltdown is around the corner. No can country can stay "virtually bankrupt" forever.

So when can we expect the unraveling? And what event comes next as part of the lead-up? What should we be looking out for?

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Which would mean the meltdown is around the corner.

On what basis do you predict that?

No can country can stay "virtually bankrupt" forever.

That much you have right.

So when can we expect the unraveling?

Who knows? The relative question is, are you going to keep living next to a nuclear power plant if you are aware of the risks? Or are you going to take actions to mitigate your exposure to them? Or take actions to eliminate the risks?

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