Abe Says Fears Of Hyperinflation Are "Mostly" Unfounded As He Urges Companies To Hike Wages
How does the saying go: it is better to keep your mouth shut and be thought a clueless Keynesian muppet than to open it and remove all doubt? Sure enough, if there was any confusion as to the level of economic comprehension (or lack thereof) of Japan's chosen savior du jour, one who is hell bent on destroying its currency and sending energy costs into the stratosphere (but don't worry - as Rajoy would say, inflation is plunging, except for the things that are soaring) the following two snippets should clear up the situation once and for all.
From Nikkei:
Japanese Prime Minister Shinzo Abe said Tuesday in parliament that worries of the central bank's inflation target triggering hyperinflation are unfortunate and unfounded.
"It's unfortunate that there are people who tout the mostly unfounded fears of hyperinflation," Mr. Abe said in a lower house plenary session.
Well as long as it is mostly, all is well.
So what is the plan, and one uses the term very loosely? Again from the Nikkei:
Prime Minister Shinzo Abe urged Japan's business leaders Tuesday to raise wages for employees, saying the move could help stimulate domestic demand and beat more than decade-long deflation.
Yes: this is Japan's head central-planner, who just confirmed that the USSR's authoritarian approach to everything was right all along. Until the moment it all turned out to be very, very wrong of course.
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Time to invest in Japan's paper market.
Gold Bitchez!
All your wages are belong to us!
You didn't build that hyperinflation!
The yen carry trade was one of the pillars of global finance for at least a decade now.
I was skeptical that the race to debase currencies would become as actively pursued by so many nations as appears to be actually happening (on that note, and as just one example, Panasonic, a company that was a stone's throw away from bankruptcy or cessation of operations, has suddenly turned a profit, all due to the sudden and violent debasement of the yen).
I guess that I was skeptical because this whole "currency wars" meme had been so prolific among so many pundits and their prognostications.
I'm starting to believe that this somewhat consensus viewpoint of "race to debase" may actually be beginning to unfold in real time, and will get much more heated.
If this happens, it will have extremely broad and deep economic AND political consequences that will lead to unforeseen global risk events, and could adversely impact a significant percentage of world trade.
We're in unprecedented territory whereby more nations than ever will literally sink or swim based on their ability to maintain or increase exports.
we are being set up for the new currency for the americas. on the 100th ann?
good bye reserve currency status.
Only those who meet to greet and beat in places like Davos & at the Bilderberg know.
I don't know, but I do suspect the rollout of some form/variant of SDR global currency is on their calendar, whether in 2018 or 2038.
They have all the time in the world.
If the US is truly echoing Japanese economic policy of the last 20 years, and if the DC dolts join in on this chorus, they won't need all the time in the world; maybe 3 years, tops.
Remember the "meme"; "a rising tide will lift all boats" is a much stronger "meme" than; "currency wars".
And in response to "We're in unprecedented territory whereby more nations than ever will literally sink or swim based on their ability to maintain or increase exports" the new and more powerful "memes" seem to be "EVERY NATION FOR THEMSELVES!!!" and "Up Shits Creek witout a paddle."
fukashima is"mostly" not radioactice either.
Lawyer: Thyroid abnormalities in 55% of Fukushima girls tested age 11 to 15 (VIDEO)
Published: January 25th, 2013 - By ENENews
Toshio Yanagihara at the United Nations Human Rights Council, NGO Information Meeting: Let me now talk about the actual health condition of the children of Fukushima. On September 11, the thyroid examinations found abnormalities such as nodules or cysts in 43% out of the 42,000 children tested. The numbers for girls are worse. 54% of girls from age 6 to 10 had these abnormalities, and 55% for age 11 to 15.
http://enenews.com/lawyer-thyroid-abnormalities-55-fukushima-girls-teste...
It won't matter either way. Unless the earth adopts a currency that is hard to manipulate simply because of it's intrinsic properties, it will be gamed to the max. Moral hazard and trust are the real issues that must be dealt with and the EROEI for all the real commodities that are required to drive the real economy will force the issue, and most likely another world war. History is very clear on this.
The dichotomy between what's best for oligarchy and what's best for the world has never been wider and more explicit. The public is growing wise to Agenda 21, "carbon tax" and "power standard." Central banks know their jig is almost up, hence the repatriation of real money and suppression in the public sphere. They intend to foist a replacement paper swindle once all the collateral is secured. Heaven forbid that the public should simply use a real money system based on intrinsic value! Bring on the disjunct, already. De-frock the would-be saviors. Remove psychopathic control freaks and their brainwashed intermediaries from power at all levels of government -- especially local.
Sepuku Bitchez!
Corrected: seppuku
Noun: Ritual suicide by self-disembowelment on a sword; practised by samurai in the traditional Japanese society
Japan's been trying to destory its currency for the past twenty years.
Nothing is working.
Deflation. Deflation. Deflation.
http://www.angrysinner.blogspot.kr/2013/02/yesterday-dragon-lady-served-steak-for.html
right, now remind us, how many yen do you need to fill the tank now, compared with 20 years ago? - FAIL
Printing does indeed work, if you believe in perpetual growth.
Good luck with that...
weimar, zimbabwe, israel.....argentina is up followed by Japan. They will honor that debt and pay it in full.
Oh we can imagine the massive production that is going to arise in Argentina...... or NOT!
Followed by the US.
What in the hell does Israel have to do with those other ecoomic basket cases? I'm not sure what your point was (except to included Israel in a list of unrelated nations to somehow make a point).
Yes - give 'em a raise! Nothing like a dose of money velocity to stem inflation. /s
(was he downing some nice Fukishima salmon as he proclaimed "all is well...nothing to see here"...?)
He's trying to encourage inflation, not stem it.
yes, i would like a raise.
Japan. Helicopter drop. Give people free money and they will cum.
Japan's political class leaves much to be desired. That said, whoever is the prime minister has to listen to guys like America's Kurt Campbell and Joseph Nye, the fat fuck Keidanren chief Yonekura and all of the CEOs from Japan's zombie export and bank industries. The concerns of 127 million Japanese have never been a priority to the government.
Yeah, but a very high number of that 127 million wanted Abe and his inflation. . .
Classic Japanese lack of responsibiity shining through right here.
You are absolutely wrong. The Japanese DO care about other Japanese. They consider themselves racially superior (like Indian Brahmans, Chinese Han, Golden Dawn, KKK, etc) and have been actively preparing for a dire future. This explains the incredible amount of R&D into robotics, computers and nano. They realize they are losing population rapidly so they are betting that machines can fill the gap. It's a huge gamble but it may be apat of the future - machines displace workers only to serve workers.
So, both of those lost decades, the high debt, the rising prices, the declining wages, the corporate/government corruption, the bailouts, the revolving door cabinets, the lost generation, the rising poverty are merely the sacrifice needed to build robots which will fix everything?
Is that you Abe-san?
In fact, the politicians think no further than the next election, the bureaucrats no further than their retirement date, and the corporations no further than the next quarterly report. And all of their thinking is supported by the much beleaguered taxpayer who, though slowly waking up to reality, remain largely apathetic or, at least unknowledgeable, about what the elite are doing to them.
"So, both of those lost decades, the high debt, the rising prices, the declining wages, the corporate/government corruption, the bailouts, the revolving door cabinets, the lost generation, the rising poverty are merely the sacrifice needed to build robots which will fix everything?"
You still talking Japan?
That's all I need to hear in order to buy more silver.
Fuck you Keynesian pricks. Eat shit.
Tyler you and Kyle Bass need a little humble pie.....please....
WTF? was there supposed to be an /S behind this comment? Bass just said that Japan targeting 2% inflation will blow things up faster -- no one will buy JGBs at 0% if inflation is 2%, so they'll have to raise interest rates, and KABOOM, interest payments on the debt are more than all tax revenue, so they need to issue more debt just to pay the interest......
If employers just pay their employees twice as much, then income tax revenues should double even if the progressive tax scheme is scaled to the new wage rates, so the increased revenues will cover the increased interest payments. Problem solved.
WTF comment of the day
You passed a dozen clueless fucktards on the freeway today, and just like them, put Mr. Axe in your rearview mirror as fast as possible.
I would not be surprised if the majority of folks in Europe and the US held this view.
LMFAO!!! And where will the captial for the higher wages come from again? - FAIL.
It is amazing that people cannot tell sarcasm, no matter how blatant. This is, however, exactly what the Prime Minister of Japan is proposing, from the article:
" Prime Minister Shinzo Abe urged Japan's business leaders Tuesday to raise wages for employees, saying the move could help stimulate domestic demand and beat more than decade-long deflation."
They won't raise IR. They will charge the serfs interest to keep their money supposedly stable....
I think Kyle Bass says the blow up period comes when your debt service is 20x your tax base. So that means the U.S. has about another 20 something trillion to go right? Party like it's 1982?
The blow up period comes when faith in the fallacious paper currency becomes a minority view. There aren't enough data points in history to derive any meaningful correlation.
My view is that the collapse could commence in earnest at ANY TIME. Lotsa folks looking out for conditions to advance to some "tipping point", but the reality is that the outcome is clear and irreversable. Once those two conditions are present, the rest are sort of arbitrary. It would be no more or less a surprise if things unraveled tomorrow or a decade from now.
"It would be no more or less a surprise if things unraveled tomorrow or a decade from now."
That is a huge statement Mayhem. Think about the psychology of that. How many nights can you go to sleep expecting to wake up to chaos before you either completely mentally snap or you accept that it will go on forever and embrace things and truly go back into the matrix? I don't think the human mind can live in that perpetual state of anxiety before it chooses one or the other.
I'm 4 beers in. That means I am capable of deep thought. I may switch to scotch and start cursing incoherently. Full disclosure.
I agree with you fonzannoon. Everybody's gotta make choices they can sleep comfortably with.
We have all seen the Matrix a hundred times. How many of you feel like Keanu Reeves? You wake up everyday and sleepwalk through conversation and meetings and mindless banter with people while your brain is weeding through the bullshit. It's like living two lives. Then I sit on here at night and wait for the computer to type to me to follow the white rabbit to the club where I meet the hot chick who brings me to Morpheus....except it never happens, and it never will happen. I will just continue to live in one reality while seeing a totally seperate reality until one turns into the other or I just stop giving a shit altogether.
It's kinda like that movie fight club....ah I see these guys who run this site may be a bit ahead of me with that one.
Sorry for the rant.
I understand where you're coming from. It's just a bitch right now.
Yes it is. My parents got divorced when I was really young. My mom bolted. My Dad raised me and my sister. When I was 10 my Dad lost his job. I remember he told me kind of matter of factly (he was a hardass when he was younger). I remember asking him if he was worried. He said "the fucking mountains will come crashing down from heaven before anyone or anything takes me down mentally".
That's the bottom line for me too, and I hope everyone else on here.
Fuck the bullshit.
I lost my job when my kids were 7, 5 and 6 months. I remember telling my two older ones - most difficult few moments of my life up until then. I explained to them that we were going to have difficulty money wise. So my oldest daughter runs over to her little desk and pulls out a quarter and hands it to me, saying "it's OK Daddy, I'll help out." I knew right then that we would be fine.
I don't know you at all, but on your story alone I would say your dad is pretty awesome.
He is thanks, and it seems like you have been blessed. Good for you man.
I lost my job while my wife was pregnant. I understand where your dad is coming from.