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Re: Japan goes MAD! (Just get a load of this)
Could Japan be EJ's sovereign default trigger?Originally posted by Mega View Post
I wonder who on earth would buy Japanese debt, when the world (and Japan itself) turned its back on Japanese equities, so much so in fact that Faber recently called the Nikkei the "ultimate contrarian play". -
Re: Japan goes MAD! (Just get a load of this)
.... and they have the gall to talk of fiscal discipline while doing it.:eek::eek::eek:We are all little cockroaches running around guessing when the FED will turn OFF the Lights.Comment
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Re: Japan goes MAD! (Just get a load of this)
Actually from a Japanese perspective this appears to be a good thing -- you just have to look at the Japanese population pyramid to see why!
Works program were not getting money into the hands of the people that needed them -- and hence a smaller multiplier -- This program I believe should result in a higher money velocity.
This just results in a redistribution of income. Time for Japan to get back to taxing the wealthy.Comment
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Re: Japan goes MAD! (Just get a load of this)
It's interesting that they included a program to pay for high school education. I only wish that China would spend it's stimulus on fully funded medical coverage. I can think of no better way to force consumption onto mercantalist economies than to remove a major anxiety that causes saving and so give a boost to domestic consumption. In my understanding saving for possible medical costs is a major motive behind the extraordinarily high savings rate in China.
Of course I wouldn't advocate this unless 1) there were such huge government induced global imbalances that they vitiated any benefit to individual saving in China 2) there were, IMHO, an economic benefit to socialiazed healthcare (through spreading risks across the largest insured base as possible.)
The current trend, however seems to be towards increased productive capacity in (money-losing) enterprises which, like its mirror-image in the west (proping financial asset prices) is the last thing anyone needs.
Better it goes to mainland white goods salesmen and doctors than into the black-hole of treasury debt issuance or, worse, the gutters of Wall Street. (The former seems to be doing just fine without it: my mental picture of the US Treasury building in DC has it levitating.
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Re: Japan goes MAD! (Just get a load of this)
More sovereign borrowing needs? Just what is the global total? And, who and where are the lenders again?!"...the western financial system has already failed. The failure has just not yet been realized, while the system remains confident that it is still alive." JesseComment
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Re: Japan goes MAD! (Just get a load of this)
OH! you didn't hear about that mythical lender that will lend to everyone when no one else will or can! I've meet him recently, his name is Mr. Press, First name Printing. He use to be quite a loud fellow I hear till computers came along and then for some reason you can barely hear him clicking his way down the street and through your grandmothers savings account. I will have to warn you there is an air of disrepute around him, I don't know why, he helps people out when they most need it and then when he charges for his oh so timely help in a script called inflation people complain. Where have good manner gone I ask you?
We are all little cockroaches running around guessing when the FED will turn OFF the Lights.Comment
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Re: Japan goes MAD! (Just get a load of this)
Japan has been running hudge goverment deficits for almost two decades now. Nearly 200% of GDP compared with USA's 100%. Yet, no inflation, no currency devaluation. I don't see a problem here.Comment
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Re: Japan goes MAD! (Just get a load of this)
They used exports to keep employment and the economy up and somewhat running and one could argue with the Yen carry trade, they exported what would have been massive amounts of inflation to the rest of the world.Last edited by jacobdcoates; December 30, 2009, 09:20 PM.We are all little cockroaches running around guessing when the FED will turn OFF the Lights.Comment
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Re: Japan goes MAD! (Just get a load of this)
All surplus capital is being spent in worthless projects in a command and control economy and you don't see a problem?Originally posted by friendly_jacek View Post
It's insanity. Two decades of failed policies and more of the same. Insanity.
This is where the US is going, I am sure of it.Comment
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