chomskyite comments

Nikkei down 11% ouch in three weeks, gentlemen start your presses.

Nikkei is down 6% in last three weeks

I think the "helicopter drop" theory would be the spark of high inflation, and instant 150 yen/usd as people fight to spend on too few goods. Then when the helicopter cash is gone, prices will remain high for a period even though the money is gone. This would cause a lack of confidence and the yen would go even lower maybe 200. From there you cannot push the snowball up hill and it is game over.

Our dear leaders don't give a darn about you or I, they only care about foreign investors buying their paper.

**Economics 101 here. The downturn in the economy was predicted long before the tax was put up. For demand to go up, people need more disposable income. Wage increases certainly could help in that area, and certainly cuts on income taxes (especially from Japan's rapacious ward offices) would also go a long way to boosting net incomes, and, subsequently, demand.

Here is some economics 101. The problem with decline has nothing to do with wages or income, but with a high cost-of-living. Japan's closed and non-competitive business practices, combined with price fixing, tariffs, taxes, and other such things have raised the cost of living to the point it can no longer be born.

The natural result of this high cost of living is reduced consumption and demand, which in turn causes deflation. If allowed to run it's course, deflation would eventually lower prices to the point people were willing to pay. The economy would stabilise, and growth would begin to occur again.

But Japan is a heavily-indebted country. The government is carrying a staggering amount of debt, as are many of Japan's larger companies. Any deflation greatly increases the weight of these debts, and makes repaying them more difficult. 2% inflation would lighten these heavy debts by 2% each year, which is a significant amount. 2% deflation would increase the weight of these debts by 2% each year, and these debts are almost being bearing as it is.

So, despite the natural tendency for deflation to stabilise the economy, the government is trying as hard as possible to cause inflation. But inflation which is not caused by increased demand simply cannot work. It is like drilling holes in the bottom of a sinking ship to let out the water. Abe, Aso, Kuroda, and all of their friends are going to run for the lifeboats pretty soon. I doubt there will be enough boats for all of us.**

Sangetsu nails it

Good article by Mr. Sugiyama . The currency dropped almost 10% in a month. Headline after headline of Japan Inc. buying everything not nailed down in the west and east. Do you think they have faith in their own economy, I think not. When those overseas profits come home, if they come home, do you think they will go into job creation here, haha I think not, again. If the yen tumbles any more it may become a cascade.

Tragic ,heartbreaking. Why don't the police use dogs in this kind of case? They would have found her on the first day because the distance was so close. You never see dogs during searches on TV. People would volunteer to do this or provide dogs.

Good luck to the Scots and thank you for the impetus. Goodbye Texas, don't let the door hit you.

So called National Parks in Japan are a joke compared to other first world countries. I've been to so called national parks from Okinawa to Hokkaido. While beautiful there is practically zero maintenance on any parks. There are few to no rangers or workers. Frankly Japan's attitude and education level on pollution matters is 40 years behind.

Currency crisis looming on the horizon Captain Abe, what is your order, sir?

the decision will be a tough one, given the risk that a hike might derail the recovery

Ummmm...what recovery? Wages and savings are down, taxes and prices are up

while postponement could roil financial markets worried about Japan’s public debt.

Oh..I see, we don't want so scare the (booming) Nikkei market. Well if the stock market is booming along what's to worry about? Why not just cut some ridiculous spending starting on ceremonial politicians who do little other than attend ceremonies and give speeches? My tiny rural city has 30 council members who rake in 7 million per year.

The government says deflation and magically it appears. Yes maybe deflation in assets like Tokyo condos , yachts , second houses , or other necessities of life. But magically everything else like food and fuel, clothing and transport is either going up up or getting shoddier. Chicken, cheese, fish, heating oil, do you see deflation here? No way. BTW the BOJ is printing or borrowing into existence every yen that makes up the trade deficit, mostly for fuel. How long can these trade deficits run as the economy and population and tax base all contract at the same time?

It still won't dent the US trade gap which is even worse than Japan's. There is no infrastructure for the gas to be exported maybe in twenty years. Japan however is I'm convinced covering its imported fuel bill with BOJ printing, there is no other way around it.

Second, if needed, the US could simply print the money to do so, a convenience countries which borrow money in foreign currencies do not have. -

This is exactly what the US is doing, printing to cover it's perpetual trade deficit. Abusing its privilege as reserve currency "printer" , I mean reserve currency holder. The Brics and others have had enough and soon the dollars will flood back home. It's already happening, look at the food inflation in the US, people are wondering why they can't afford beef any more, well duh.

Every country holding USTbills knows they will never be redeemed for the most part. It's like a tax for doing business with the US.

If the past is anything to go on, there will be a small jump up in Q3 , then recession.

Abenomics is a double edged sword. Exports won't pick up without a 120 yen/dollar. But then the voters will kick you out when gas/oil ratchet up even more. Can't drop interest rates any more. What's a silver spoon bureaucrat to do these days?

If the total amount of approved renewable energy capacity, 68.6 gigawatts, was all brought online it would lead to an annual increase in costs of 1.9 trillion yen ($18.66 billion), says the Central Research Institute of the Electric Power Industry, which is run by Japan’s regional power monopolies.

This is such a farce. The gov prints 60 trillion yen per month to prop up the nikkei and stimulus programs, yet 1/3 of one month of that is unavailable for a years worth of solar....hmmmm. Yes it must be the land titles getting in the way, uh huh.

And the detailed evacuation plans for all nuclear power stations are ready and waiting right Mr. Abe ? You've had 3.5 years to prepare these detailed evacuation plans and resettlement plans Mr. Abe, they are ready to protect us ,yes?

Every single indicator of economic health in Japan is so far down it is frightening, except for unemployment which is steady because most jobs are now help by freeters, part timers. Exports, down. Imports, up. Fuel, food prices up up. Yen, down, as in Abe just took 20% of your purchasing power via inflation. Births down, deaths up = less tax base. Consumption tax up, you get tooled again. Consumer loans down, credit card loans up. Machinery production, down. Tell me, how can production be down and stock market up? It is the unused stimulus cash sitting in the banks who aren't making loans to you and I being used for speculation in stocks. It's called a smoke and mirrors show.

And those McNuggets are yummy too?

Last nights news was showing gasoline at 169 down two tenths of a yen, that must be the inflation easing. Chicken is hovering at 100 yen per 100 grams, 80 yen per 100 grams is history. More inflation easing?

When asked why he had 400,000,000 yen in cash in his office Ozawa responded, "that sounds about right for someone in my position". Somebody buy this man a fishing pole.

Fret not, 6 trillion yen per month will not be wasted on you or I ...

Some posters here say that Japanese corporations pay no taxes, maybe the larger ones. I wish they would explains this in greater detail.

http://shisaku.blogspot.jp/2014/06/japans-corporate-income-tax-who-pays.html

I think the current low yen is busy buying fuel futures while they can. When the next round of stimulus printing comes watch the yen plummet.

Maybe if so called premium beer wasn't 6000 yen per case for Budweiser quality beer people would buy more. Maybe Kirin should pressure the government to reduce the ridiculous beer tax which is half the cost of a single can. A case of beer probably costs 500 yen to produce, it's wheat and water.

Taper into strength, ease into weakness. The economy is weak, hence more easing, no matter what Abe says.

I hope they don't cut Dioxo-kin, the mascot of rubbish incineration, or Chikan-kun, the mascot of city subways with 4 hands.

Only in lalaland can you call 6 trillion yen per month of monetization holding fire, I call it lying.

Well let's see. Rice is 7X the world price. Kei car tax and registration is being raised so the big car makers stay rich, heck with the little guy. Beer is 60USD per case. Why wouldn't young people want to have lots of children, or even get married for that reason?