politics

Abe reforms take aim at Japan's $1 trillion pension fund

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By Chikafumi Hodo

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Good lord this is how the pension works!

3 ( +3 / -0 )

Keep those LDP crooks' hands off the fund, unless you want to see groups of emaciated octogenarians begging for alms at the Ginza crossing.

18 ( +19 / -1 )

By the time many of us 'retire' (ie. work the same amount of hourse for half the pay) at 70 or so, it'll be pay in and receive nothing back.

5 ( +9 / -4 )

Do whatever you like to but do not make retirees' life miserable and ensure that pension payment is fully guaranteed.

6 ( +6 / -0 )

I fought for six months to get off this pension system cos it is a bloody rip off! The structure of it is, most contributors will not live long enough to ever get a full return on their investment. It's a flipping pyramid scheme! You pay into it for 50 years and get benefits for 20 years, if you are lucky! It is a scam at the highest level!

5 ( +8 / -3 )

“We are like the carp on the chopping block.”

It's those who have paid into this Ponzi scheme who are on the chopping block. 60 or 67% exposure to worthless bonds is a massive risk. Putting more on the Nikkei roulette wheel is no better. A bird in the hand is worth ten in the brush. With Abe's stated goal of 2% inflation(currency) and near zero bond rates, it's a loser. When things tank, they'll creatively dip into to fund as a bail-in. Pensioners will get IOUs.

4 ( +6 / -2 )

most contributors will not live long enough to ever get a full return on their investment.

Monthly contributions to the kokumin nenkin are ¥15,020 a month, which comes to ¥7,209,600 paid in over the maximum 40 years (The actual amount is much less, because the premium has gradually risen over the years). The full pension is ¥786,500 per year, which works out at a break-even point of 9.2 years. 65+9.2= 74. The average lifespan as of 2011 was 83 (79 for men, 86 for women), so if you make it to the average, you're quids in. Taking the rise in premiums into account, you're probably laughing if you make it to 70. Maybe not so giggly if you're still in your twenties or early thirties now.

Things are more complicated for the kosei nenkin; you pay in more, you get more out.

8 ( +9 / -1 )

Perhaps Abe trying to screw around with the pension will make some folks up? Dis, how did you get out of paying? It is illegal not to pay unless you are making less than a certain amount, no? Lord knows I would rather invest the money on my own but I thought we didn't really have a choice.

1 ( +1 / -0 )

Don't worry, you'll get your state pension, regardless of the investment strategies. Why? Because your pension is denominated in yen, and who has the monopoly to issue yen? Yes, the Japanese government, which runs the pension fund. Get it?

-2 ( +2 / -4 )

I would rather invest the money on my own but I thought we didn't really have a choice.

If you work for a company with over five employees you must pay it. Foreigners can apply for a refund after they leave Japan, but there is a catch, of course. You can only make the application in Japan and you have to be living outside of japan for one year before you can apply. Slam dunk! It is possible to organise the paperwork before you leave Japan. Just hope the shiakusho doesn't burn down while you are waiting. Oh, and did I mention you will only get 60% back? The J-Gov keeps 40% as an account keeping fee. It's a blatant rip off! - I have my own private superannuation that I have been paying for 30 odd years. The return is more than enough to support my family and I in retirement, but these wankers persist that I have to keep paying this stating that Japan has an agreement with the Australian pension system, but I am not on the Australian pension system either! I have a private super with huge returns and having this scam deducted from my salary is making it difficult for me to keep my super payments up. It's a scam and foreigners should not HAVE to pay it!

1 ( +2 / -1 )

cleo is absolutely right. It is a generous plan. It is so generous so that the government has problems. Yet, there are a lot of Japanese who cannot do the calculation and keep declining to join the plan believing the plan is not profitable.

-1 ( +1 / -2 )

Remember way back when when the LDP guys were looking at the huge bundle of money piled up in Social Security ... they dove into it and squandered it while stuffing their pockets along the way.

Fast forward to today and once again they have a huge surplus in a major fund ... this one being the pension fund, as mentioned above. If they are going to monkey around with it, I hope somebody with a sane mind watches these LDP guys closely and makes sure they don't mess up things again.

So far the pension fund is working okay ... and they want to, er, "improve" it? If it's doing so well, why do they want to change it at all?

I don't trust them. Just hope the Japanese public keeps a close watch on these money-hungry clowns ...

5 ( +5 / -0 )

On top of the ridiculous Inhabitants tax and even more outrageous PUBLIC healthcare, the ¥15,000 / month contribution is a struggle.

4 ( +4 / -1 )

A generous plan? Really? The pension payment for a couple is 160-180k per month just a little more than unemployment benefits from HelloWork. If you were to put the same amount of money into a term investment with a bank or building society you could live off the interest!

1 ( +2 / -1 )

Disillusioned, you do not know the interest rates of Yen denominated accounts.

-1 ( +2 / -3 )

It's locking a hell of a lot of Japan's retirement funds into poorly/overly conservatively investments that simply don't make enough money. 2.4% over 10 years is poor, even with the GFC - some of the better superannuation funds were 6-7% in the same period, the best ones up around 9%. Forcing changes to the system to increase the amount that goes into stocks and other areas of the economy are certainly a good thing for two reasons. More money in the system and higher rates of return, means less pressure on younger generations to have to prop up the retirement fund for an ageing population. They in turn have more disposable income.

Has to be done.

1 ( +1 / -0 )

I wonder how many in the financial world are having dreams about getting their hands into this huge honey pot. But then again I should imagine it will stay with old boys network, nothing will change except that the rich will get richer.

3 ( +3 / -0 )

Foreigners can apply for a refund after they leave Japan, but there is a catch, of course. You can only make the application in Japan and you have to be living outside of japan for one year before you can apply. Slam dunk!

Been there, done that and it is growing nicely! ;)

The issue with the amount of money given to older folks is the assumption that many own their own homes and don't need to pay rent. Great for the 70+ folks that DO own their own homes but many who are 60-70 do not because they could not afford one during the bubble. This is only going to get worse with the insane housing prices, the lack of job security and the fact that this money is going to be limited and pretty much worthless when it comes time for us to cash out. Add in that the retirement age is a joke at 60-70 (depending on your job) and that folks are living faaaar longer...

Japan needs to raise the retirement age, stop handing out pensions to those who haven't paid a yen into it (ahem, housewives) and start taking pension off wages in a form of a tax - like Canada does. Something like 50% of those who should be paying it under the age of 35 are not paying. Are these folks going to try and claim it in the future or will they starve to death because they're too stupid to save their pennies or can't save them because they are living hand to mouth right now? Stop allowing people to get out of paying and take it straight from the salary of anyone over the age of 18 who makes more than 60,00 yen a month.

0 ( +2 / -2 )

You dont know who you are messing with "This is ABE"

0 ( +0 / -0 )

Nobody can actually count the money... just a pipe dream.. make the government accountable.

0 ( +0 / -0 )

Put this one trillion on Australia high profitable interests, but ask them first to arrest all their pirates like ss criminals :)

-2 ( +0 / -2 )

tmarie, I do not understand your logic. As cleo correctly pointed out, the plan is too generous for the participants. The more the people pay into the plan, the bigger the hole in the government budget will be.

Tamarama, TOPIX was around 920 10 years ago. It is now arround 1170. That means average compounded annual return was 2.43%. "You cannot beat the market in the long run" is Finance 101.

0 ( +1 / -1 )

All these govt pension schemes are a scam they rely on people to pay in while the govt is hoping the large numbers wont make it to the age to collect it. They all work fine while you have a rising number in the population. When the population and the number of workers decreases and the number of older ones increases like now then they run into trouble.

If possible take care of your own pension fund while you are younger enough to make it worth while.

-1 ( +0 / -1 )

What don't you understand? There isn't going to be any money left the way they keep using it - and not investing it. There are going to be a lot of people who need money when they hit 70 and since they haven't paid into it, hopefully won't be able to claim it. However, I think that is wrong - make EVERYONE pay into it - and manage it better. Raise the age of retirement so we don't have genki 70 year olds who would like to work but can't claiming pension.

-2 ( +1 / -3 )

Can we call a nation unable to properly care for its senior citizens developed?

3 ( +3 / -0 )

There isn't going to be any money left the way they keep using it

How can the govt run out of yen, when the govt is the sole authority that creates the yen?

When the govt pays pensions, it doesn't pay any physical money; it electronically credits your bank account. Since it fully controls the production of yen, it will have no problem paying its obligations in yen. Hello?

There will be no starving pensioners.

-2 ( +1 / -3 )

The entire idea of trusting government for retirement is ludicrous. Government only wants the money and then spends it where they want. If it was really an annuity it would be invested in a private annuity company that has some sort of accountability and must make a profit to stay in business. As it is government does not have to make a profit, they just raise the taxes. An Annuity is something set aside for an individual not to pay for someone else and as such no one has an annuity here, they have the same social security system as the USA which is breaking the bank because the government keeps taking the money and spending it elsewhere. If a private company did that they would all be put in jail. Annuity, you pay in and it is in your name, you make the decision concerning it's investment. That is an annuity this is a government scam.

0 ( +2 / -2 )

tmarie

There isn't going to be any money left the way they keep using it - and not investing it.

What do you mean by "they"? The people or the government? Japan still has healthy savings among young people. For example, table 6 "household savings and loans by type of Job" on page 2. http://www.stat.go.jp/data/sav/sokuhou/nen/pdf/h24_gai4.pdf

2012

Employee Household Ave. unit 10,000 yen

Annual Income 691

Savings Balance 1233

Loans Balance 695

of which Housing Loans 648

-1 ( +0 / -1 )

JeffLee is probably correct but whats the point of getting money that will be worth far less than it was when it was invested for the exact reason he said, its printed, its value is becoming less.You may get enough each month to buy one loaf of bread at Y20000. Also there is no guarantee to get it if its like the US fund which is not a right but an obligation (check it out)

If cloe is correct and there is no doubt to expect she isn't, then the problem is that there are unfunded obligations to contributors, yet again, similar to the USs problem of unfunded social security and health care obligations. Then of course the solution is as Jeff says, just print more and around the circle goes.

Since 60% plus is J Bonds which is Govt debt, it can't be a safe investment, I mean you can buy my VISA card debt, any one be silly enough to do that? If so just leave the money in a brown paper bag ..... hahaha.

Have to disagree with Tmarie, its not wrong to make EVERY ONE pay into it, its wrong to make ANY ONE pay into it as its is absolutely a scam and being run by 80 people of which some have not reasonable credentials to manage that amount of money. It a kind of money cow, when the Govt needs some money they just milk it.

There are hard times to come, get ready.

4 ( +5 / -1 )

How can the govt run out of yen, when the govt is the sole authority that creates the yen?

Yes, printing money and making it worthless. That's a great idea.

Scooby, I'm all for not paying into it but let's be honest, that won't happen. Too make idiots wouldn't save their money and invest and there would be many old folks in dire need. I hate that some folks pay, some don't.

1 ( +1 / -0 )

Japan is going to be an extremely grim place soon as costs rise and jobs decrease...........

0 ( +1 / -1 )

People in my company who have recently retired are receiving their pension payments and going on trips to all sorts of places and having a great time...

0 ( +1 / -1 )

Serrano, those would be the smart folks who saved their pennies. There are many more out there who did not.

2 ( +2 / -0 )

You cannot get a Japanese SS unless you have paid into it for 25 years. I tried to join about ten years ago at and was told I would have to make up back payments for that many years. Of course I declined.

0 ( +0 / -0 )

Serrano - Yeah, that would be right. They are Japanese and have been banking their yearly bonuses and salary increases for many years. The only plus about this system is the lack of means testing, but for a foreigner on a pissy salary with no bonuses or yearly salary increases it is just a rip off!

0 ( +0 / -0 )

Invest on your OWN for your retirement, people. I worry about people in any country who rely solely on government to provide them a nest-egg.

2 ( +2 / -0 )

JeffLee is probably correct but whats the point of getting money that will be worth far less than it was when it was invested for the exact reason he said, its printed, its value is becoming less. You may get enough each month to buy one loaf of bread at Y20000. Also there is no guarantee to get it if its like the US fund which is not a right but an obligation (check it out)

Well said, Scoobydoo. It is not that difficult for everyone to understand the economic fundamentals here.

More YEN printing equals to its value to become less.

Also there is no guarantee to get it if its like the US fund which is not a right but an obligation (check it out)

You've got it right. Just because we paid into the fund does not give us any rights whatsoever, the Congress can modify or stop it anytime. Hopefully it will not be stopped as there will be a social unrest in the US if they do. Knock on wood!

0 ( +0 / -0 )

save on your own. Whatever you get from the government is considered " incidental ". With that mind set then you are " safe " from destitution at retirement.

0 ( +0 / -0 )

It's all a Pyramid Scheme. We are fkd in th USA and I have been forced to pay Social Security Tax all my life and it is bankrupt but I am still legally obliged to pay money every month into this? What is my bennefit? Nothing. It is defunct. Now tell me how I am going to afford Obamacare at 300 bucks a month. I'm not and the can go F them selves. If I had an extra 300 bucks laying around every month I would be driving a nice car.

-1 ( +1 / -2 )

1 Trillion largest in the world because many foreigners who work in Japan for very long time can only get 3 months equivalent of their salary as pension lump sum, ha ha ha good business.

-2 ( +0 / -2 )

Yes, printing money and making it worthless. That's a great idea.

Well, Japan has been doing this for a long, long time. And guess what: the yen has long remained one of the world's firmest currencies. As long as Japan's economy remains productive, then it can always resort to instant money creation (unlike some other countries).

The threat of creating all that liquidity would be hyper-inflation: Japan suffers instead from protracted DEflation. So it's pointless to trash the whole system by citing non-existent dangers.

-1 ( +0 / -1 )

JeffLeeJul. 05, 2013 - 06:32AM JST

Yes, printing money and making it worthless. That's a great idea.

A great idea? Why??????

0 ( +0 / -0 )

JeffLeeJul. 05, 2013 - 06:32AM JST

Well, Japan has been doing this for a long, long time. And guess what: the yen has long remained one of the world's firmest currencies. As long as Japan's economy remains productive, then it can always resort to instant money creation (unlike some other countries).

You really do need to do some basic research into the quantity theory of money. Your statement is ill deserving of a 16 year old studying economics for the first time.

A value of a currency, in the long term, is determined by the demand for that currency by others and is not determined by the money supplier.

If you can't wrap your mind around that, it really is a waste of time exchanging opinions with you.

As others have pointed out to you, when a currency is deemed near worthless, it really doesn't matter how much you are paid in that currency, its only use is as toilet paper and kindling for a fire.

Ultimately this is the long term flaw of receiving a pension in Yen.

0 ( +1 / -1 )

Dog Yes demand for currency is the big factor. That's why I said "as long as Japan's economy remains productive." Get it? But in a scenario where too much yen is chasing too few goods, you can also end up with inflation. Yet I don't subscribe to that scenario, I'm just citing it as theoretical possibility, and am also calling it a "non-existent danger," given the nature of the Japanese economy and its deflationary tendancies.

The upshot: pay the pensioners their full due, regardless of how much money is in the fund. There are no risks worth considering.

A great idea? Why??????

Globalwatcher: I was quoting someone else, and he was being ironic.

0 ( +0 / -0 )

Dog

A value of a currency, in the long term, is determined by the demand for that currency by others and is not determined by the money supplier.

If this were true, money supply has nothing to do with the value of currency or inflation. BoJ Governor or the Chairman of FRB would happy to hear that, because whatever they do has no impact on the economy. Is this what the teachers tell the pupils at school when they get 16?

The annuity of Japanese national pension Kokumin Nenkin is inflation indexed. If there is inflation, the annuity increases by the inflation rate.

0 ( +1 / -1 )

CH3CHOJul. 05, 2013 - 09:26AM JST

Dog If this were true, money supply has nothing to do with the value of currency or inflation. BoJ Governor or the Chairman of FRB would happy to hear that, because whatever they do has no impact on the economy. Is this what the teachers tell the pupils at school when they get 16?

Too silly to reply to, but without a demand in the first place, supply is a non-existent variable in a currency's value, Zimbabwe dollar.

You wanna buy some Doggy Dogs? I've only printed 2 of them, might print another one of my new currency, but that would be a 50% devaluation of my existing currency,,,,,,,,,,,if there were a demand in the first place.

JeffLeeJul. 05, 2013 - 08:30AM JST

Dog Yes demand for currency is the big factor. That's why I said "as long as Japan's economy remains productive.

That's one big 'as long as' gamble being played out there. Anyone who is banking on receiving their pension in Yen in plus 5 years from now, even if the government does have the funds to pay them, is cruising for an old age of poverty.

1 ( +2 / -1 )

Too silly to reply to, but without a demand in the first place, supply is a non-existent variable in a currency's value, Zimbabwe dollar.

You wanna buy some Doggy Dogs? I've only printed 2 of them, might print another one of my new currency, but that would be a 50% devaluation of my existing currency,,,,,,,,,,,if there were a demand in the first place

Yey, Dog, we are really talking about a Demand Side Economic fundamental. The Supply Side Economics never works.

0 ( +0 / -0 )

Anyone who is banking on receiving their pension in Yen in plus 5 years from now, even if the government does have the funds to pay them, is cruising for an old age of poverty.

Why would the gov't NOT pay pensions... in a currency that it alone has the authority to issue?

-1 ( +0 / -1 )

JeffLeeJul. 05, 2013 - 02:37PM JST

Why would the gov't NOT pay pensions... in a currency that it alone has the authority to issue?

You're missing the point.. for the currency to be worth anything on the global stage, it will have to cut its cloth according to its income, which means massive public expenditure cuts, including pensions or it will just be paying out monopoly money that will be worthless.

Either way, future pensioners in Japan are ######

0 ( +2 / -2 )

Dog, do you understand what you are saying? You are saying that money supply has no impact on the value of currency. Then why does the value of currency drops when the government prints tons of money?

If Dog is right, the government can print as much money as it likes without the risk of inflation, making the job of central bankers piece of cake.

-2 ( +0 / -2 )

CH3CHOJul. 05, 2013 - 03:56PM JST

Dog, do you understand what you are saying? You are saying that money supply has no impact on the value of currency. Then why does the value of currency drops when the government prints tons of money?

No I'm not. I'm saying that there must be a demand basis in the first place for central banks to be able to impact the value of a currency by controlling supply.

If nobody wants your currency because it's only worth is the paper and ink, then money supply is not a variable on a currency's worth.

It's not rocket science.

0 ( +1 / -1 )

80 civil servants to run 1 trillion dollars? Crazy. Bet if they did a proper review of this they would find lots of money missing already. and once the politicians stick their oar in plenty more will be squandered or outright stolen.

0 ( +0 / -0 )

Dog

If nobody wants your currency

This assumption is fatally wrong. A statement is always true if the assumption is always false. But the statement is worthless, which is the case with your argument.

-3 ( +0 / -3 )

If nobody wants your currency

This assumption is fatally wrong.

The assumption is the reality of hyperinflation. Do you want a truck load of Zinbabwe currency? When I went to Zimbabwe, locals are so sick of carrying tons of cash for shopping. If printing money is the solution, Zinbabwe will be the Champion of prosperity. However it is the Champion of poverty.

http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe

http://www.newzimbabwe.com/pages/inflation180.17386.html

http://www.economicshelp.org/blog/390/inflation/hyper-inflation-in-zimbabwe/

A statement is always true if the assumption is always false

If we can pick up the Gold on the road like sand, Gold will be worthless like sand . A glass of water can worth a many billion dollars in sandy desert because it is so rare. Currency is not the natural resource as Gold or Water. It is man-made legal tender for exchange of goods and service. The value of currency is fragile and unsustainable.

-4 ( +1 / -5 )

"for the currency to be worth anything on the global stage, it will have to cut its cloth according to its income"

But the yen remains one of the world's strongest currencies. When in SE Asia, I can convert yen just as easily as the US dollar, even at street side stalls. That's despite all the massive deficit spending and QE Japan has engaged in over many years. In the real world, there is no correlation.

All of the predictions over the years of the yen collapsing or becoming debased have been proved flatly wrong.

-1 ( +1 / -2 )

JeffLeeJul. 06, 2013 - 08:04AM JST

But the yen remains one of the world's strongest currencies. When in SE Asia, I can convert yen just as easily as the US dollar, even at street side stalls. That's despite all the massive deficit spending and QE Japan has engaged in over many years. In the real world, there is no correlation.

This repetitive posting of Japan has reinvented the financial wheel is becoming rather tiring. You either just choose to post without reading people who have been kind enough to reply t5o you or you choose to ignore the obvious they are stating..

For the last time I will reply. Japan's currency has not collapsed because Japan has been running current account surpluses. As a matter of fact it has the biggest current account surplus of any country. This current account surplus was built up on the trade surpluses of the economic productive years of the 1960s, 1970's and 1980's, and the savings of the Japanese. The trade surpluses of old have disapperaed and the fiscal government surpluses have, since 1991, followed suit. However the savings, which have been invested, allows Japan, in the very short term, to keep running the current account surpluses,

These current account surpluses are soon to disappear because the dankei generation want to spend the savings they have accrued and more importantly the Japanese government has been running the country on credit and contrary to what you and others believe, Japan is equally effected by government debt as any other national state. The difference is that the Japanese don't believe so and they've found a few rather dumb people to believe them.

Please don't throw out the same old spiel about Japanese debt being overwhelmingly domestic and that's what makes it different. Nearly every G7 country's debt is overwhelmingly domestically owned; the UK owns 85% of its national debt and the US owns 70% of it's national debt.

The only difference between Japan and its other G7 partners is that when the fiscal meltdown in Japan happens, it will be very very quick and very very violent, probably around 2017, when the bill that the Japanese government has accrued on its credit card will be equivalent to the total wealth of this country.

Ergo anyone banking on a pension in Yen being worth anything after or around 2017 - 2020, is in for a very bad financial shock.

-1 ( +2 / -3 )

The repetitive Japan doomsday whining is tiring. Everyone including the incumbent Government knows that he national debt is not something to shrug off and is a problem yet noone on this site talks about the other side of the "balance sheet". Japan has the largest holding of foreign assets of any nation by a wide margin (yes more than China, more than the US, more than Germany or Switzerland or Canada) in 2012 it was over 250 trillion yen. Those assets produce income in the form of dividends, interest payments and other income gains. This foreign asset holdings has actually increased by 2.5 times since around 17 years ago and is still growing. Now with the weaker yen and global interest rates increasing (stop yapping about JGB int rates surging they are still at very very low rates and it is the differetial rate rather than the absolute rate that is imortant), where does everyone think Japanese money is going to go? Lets not also not forget about the huge postal savings in Japan (yes its decreasing but still the largest savings in the world); the huge amount of cash the Japanese companies are sitting on (STFU, Japan is not just about Sharp, Sony, Panasonic and Kawasaki steel there are 2000 comapnies listed in the TSE alone) and the enormous income arising form the huge volume of Japanese intellectual property. Japan is not Zimbabwe and the current account is not going to go negative within 7 years.

3 ( +3 / -0 )

randommanJul. 06, 2013 - 06:48PM JST

Japan is not Zimbabwe and the current account is not going to go negative within 7 years.

Have a read of this. It is written simply enough for just about anybody to understand. It was published today.

http://english.caixin.com/2012-03-23/100372177_all.html

-1 ( +1 / -2 )

Doggy are you a time traveller? The article was printed in early 2012 by a well known Chinese economist who is just another doomsdayer of the Japanese economy like Fujimaki, Karl Bass, Hugh Hendry etc etc They all have their arguments. If Andy Xie is right then we are currently in a massive yen devaluation which is supposed to happen over a period of days with the end of the Japanese economy and of course would be taking down the rest of the global financial markets, yet the Nikkei is at 14400 surging on Friday and the recent weakness of the yen can hardly be called a collapse. One point, I still don't understand why so many people view Japan as a pure electronics exporting country. As an example , has anyone heard of advanced manufacturing?

Even I am not stubborn to the point of putting all my money on the Japanese recovery but look at it from this angle, why do you think you know more than the key global financial markets where the yen is still at USD101 , 10 year JGBs at 0.8%? This argument about the demise of Japan has been going on since the beginning of the century , yes 13 long years and what all these doomsdayers talk about is common knowledge in financial think tanks. Are you telling me that markets are not efficient and that Dog has some exclusive foresight about the end of Japan? If your 7 year demise of Japan is correct then you should go and short the hell out of long term JGBs since they are so many light years away from your prediction..go for it doggy because if you are right you can make millions!

1 ( +1 / -0 )

randommanJul. 06, 2013 - 07:57PM JST

go for it doggy because if you are right you can make millions!

I did, of the currency exchange rates from 2008 - 2012

-1 ( +1 / -2 )

Andy Xie doesn't have a clue. According to his earlier predictions, made with great certainty, the yen should have made a sudden and drastic crash several months back, with Japan sinking into another depression. Hello?

The difference between my arguments and Dog's is that I cite things that actually happen, while Dog cites things he imagines will happen. And his stances seems based on that worldview that has consistently been proven wrong over the last few years. Hey, sovereign debt crisis, where are you?

0 ( +0 / -0 )

I don't why Abe wants to reform the Pension Fund- they can't afford for it be reformed right at the moment- pulling money out of government bonds would mean they'd have raise interest rates to get foreigners to buy their government bonds. I don't hear anything about reducing debt- they seem hell-bent on boosting it up. Sure in the moderate long term it is just a house of cards.

1 ( +1 / -0 )

Nathaw

If we can pick up the Gold on the road like sand, Gold will be worthless like sand .

Is it the demand or the supply that made the value of gold worthless in that case? It is supply, of course. Likewise, if the central bank increases the supply of currency, value of the currency will drop.

Why do Dog, Nathaw et al keep saying it is DEMAND for cash that matters?

-1 ( +0 / -1 )

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