The Best ‘Reflation’ Indicator May Be Japanese

By |2018-04-02T17:16:00+00:00April 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 [...]

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

By |2016-08-18T17:27:58+00:00August 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 [...]

It Was All A Dream

By |2016-08-02T16:31:15+00:00August 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 [...]

End All The Myths; They’re Almost Done Anyway

By |2016-07-06T18:52:45+00:00July 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 [...]

It’s Not Stupidity, It Is Apathy (For Now)

By |2016-05-31T18:42:34+00:00May 31st, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Ten days ago, it was reported that the Bank of Japan for the first time set aside reserves against expected losses should its massive portfolio of JGB’s finally move toward QQE success. The main part of all this “stimulus” has been the accumulation of primarily government bonds at massive premiums. If it were ever to [...]

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