fbpx

abenomics

You Don’t Have To Take My Word For It About Eliminating QE

By |2021-10-20T19:33:04-04:00October 20th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

You don’t have to take my word for it. QE doesn’t work and it never has. That’s not just my assessment, pull out any chart of interest rates for wherever gets the misfortune of having been wasted with one of these LSAP’s. If none handy, then just read what officials and central bankers write about their own programs (or those [...]

Nine Percent of GDP Fiscal, Ha! Try Forty

By |2021-02-24T18:38:43-05:00February 24th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Fear of the ultra-inflationary aspects of fiscal overdrive. This is the current message, but according to what basis? Bigger is better, therefore if the last one didn’t work then the much larger next one absolutely will. So long as you forget there was a last one and when that prior version had been announced it was also given the same [...]

Transitory’s Japanese Cousin

By |2018-04-20T12:26:14-04:00April 20th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Thomas Hoenig was President of the Federal Reserve’s Kansas City branch for two decades. He left that post in 2011 to become Vice Chairman of the FDIC. Before that, Mr. Hoenig as a voting member of the FOMC in 2010 cast the lone dissenting vote in each of the eight policy meetings that year (meaning he was against QE2, too). [...]

The Best ‘Reflation’ Indicator May Be Japanese

By |2018-04-02T17:16:00-04:00April 2nd, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Japanese industrial production dropped sharply in January 2018, Japan’s Ministry of Economy, Trade, and Industry reported last month. Seasonally-adjusted, the IP index fell 6.8% month-over-month from December 2017. Since the country has very little mining sector to speak of, and Japan’s IP doesn’t include utility output, this was entirely manufacturing in nature (99.79% of the IP index is derived from [...]

Japan Is Booming, Except It’s Not

By |2017-10-24T17:26:22-04:00October 24th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Japan is hot, really hot. Stocks are up to level not seen since 1996 (Nikkei 225). Prime Minister Shinzo Abe called snap elections in Parliament to secure a supermajority and it worked. Things seem to be sparkling all over the place, with the arrow pointing up: "Hopes for a global economic recovery and US shares' strength are making fund managers [...]

Maybe Economists Should Just Throw Darts Rather Than Keep Searching For The Magic Number

By |2016-08-18T17:27:58-04:00August 18th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

One of the primary points of emphasis with regard to Japan’s QQE was the yen itself. Pushing the value down, even by misconceptions about what central banks do, was supposed to simultaneously increase inflation pressures via the currency translation while also stimulating the export sector to a sufficient degree that Japan Inc. would be reborn and share the nominal gains [...]

It Was All A Dream

By |2016-08-02T16:31:15-04:00August 2nd, 2016|Markets|

Last Friday the Statistics Bureau of the Japanese Ministry of Internal Affairs and Communication reported some more bad news for Prime Minister Abe and really Bank of Japan chief Kuroda. Month-over-month, the consumer price index was down again, leaving it 0.48% less in June 2016 than June 2015. This was the third consecutive month of increasingly negative year-over-year CPI estimates. [...]

Magic Number Bias

By |2016-07-11T11:33:39-04:00July 11th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

As an outsider, it is difficult to gain the pulse of Japanese politics. Viewing it all only from an economic or financial perspective is immediately too narrow. There is far more than just Abenomics at stake, though Prime Minister Abe used the crutch of Abenomics’ failure so far as somehow a benefit. There are other factors, perhaps more important factors, [...]

End All The Myths; They’re Almost Done Anyway

By |2016-07-06T18:52:45-04:00July 6th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Nominal disposable income in Japan fell 4.4% year-over-year in May 2016. In what can only be a sign of the times being far too familiar in Japanese, real disposable income was thus slightly better at “only” -3.9%. For all the hundreds of trillions in new Japanese bank reserves provided by so many QE’s I have lost count, “real” in Japan [...]

Go to Top