This page has been archived and commenting is disabled.

Abe Says Fears Of Hyperinflation Are "Mostly" Unfounded As He Urges Companies To Hike Wages

Tyler Durden's picture


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.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 02/05/2013 - 22:43 | 3218631 zorba THE GREEK
zorba THE GREEK's picture

Time to invest in Japan's paper market.

Tue, 02/05/2013 - 23:01 | 3218702 GiantVampireSqu...
GiantVampireSquid vs OWS UFC 2012's picture

Gold Bitchez!

Tue, 02/05/2013 - 23:02 | 3218705 GiantVampireSqu...
GiantVampireSquid vs OWS UFC 2012's picture

All your wages are belong to us!

Tue, 02/05/2013 - 23:03 | 3218710 GiantVampireSqu...
GiantVampireSquid vs OWS UFC 2012's picture

You didn't build that hyperinflation!

Tue, 02/05/2013 - 23:40 | 3218794 TruthInSunshine
TruthInSunshine's picture

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.

Wed, 02/06/2013 - 00:39 | 3219003 fourchan
fourchan's picture

we are being set up for the new currency for the americas. on the 100th ann?

good bye reserve currency status.

Wed, 02/06/2013 - 01:30 | 3219077 TruthInSunshine
TruthInSunshine's picture

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.

Wed, 02/06/2013 - 04:26 | 3219253 zhandax
zhandax's picture

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.

Wed, 02/06/2013 - 04:30 | 3219256 Temporalist
Temporalist's picture

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."

Wed, 02/06/2013 - 08:04 | 3219369 fourchan
fourchan's picture

fukashima is"mostly" not radioactice either.

Wed, 02/06/2013 - 14:54 | 3220775 matrix2012
matrix2012's picture

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.

Wed, 02/06/2013 - 09:43 | 3219587 LawsofPhysics
LawsofPhysics's picture

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.

Wed, 02/06/2013 - 17:23 | 3221305 Lore
Lore's picture

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.

Wed, 02/06/2013 - 02:24 | 3219162 ersatzteil
ersatzteil's picture

Sepuku Bitchez!

Wed, 02/06/2013 - 13:29 | 3220445 matrix2012
matrix2012's picture

Corrected: seppuku

Noun: Ritual suicide by self-disembowelment on a sword; practised by samurai in the traditional Japanese society


Wed, 02/06/2013 - 02:09 | 3219130 bobthehorse
bobthehorse's picture

Japan's been trying to destory its currency for the past twenty years.

Nothing is working.

Deflation. Deflation. Deflation.

Wed, 02/06/2013 - 09:45 | 3219592 LawsofPhysics
LawsofPhysics's picture

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...

Tue, 02/05/2013 - 22:43 | 3218632 Groundhog Day
Groundhog Day's picture

weimar, zimbabwe, israel.....argentina is up followed by Japan.  They will honor that debt and pay it in full.

Tue, 02/05/2013 - 23:39 | 3218834 flacon
flacon's picture

Oh we can imagine the massive production that is going to arise in Argentina...... or NOT!

Wed, 02/06/2013 - 00:28 | 3218986 yogibear
yogibear's picture

Followed by the US.

Wed, 02/06/2013 - 10:24 | 3219744 tango
tango's picture

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). 

Tue, 02/05/2013 - 22:44 | 3218635 mayhem_korner
mayhem_korner's picture




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"...?)

Wed, 02/06/2013 - 00:23 | 3218968 Matt
Matt's picture

He's trying to encourage inflation, not stem it.

Tue, 02/05/2013 - 22:44 | 3218636 Frank N. Beans
Frank N. Beans's picture

yes, i would like a raise. 

Tue, 02/05/2013 - 22:55 | 3218680 max2205
max2205's picture

Japan. Helicopter drop.  Give people free money and they will cum.  

Tue, 02/05/2013 - 22:45 | 3218637 suteibu
suteibu's picture

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.

Wed, 02/06/2013 - 01:08 | 3219056 BigInJapan
BigInJapan's picture

Yeah, but a very high number of that 127 million wanted Abe and his inflation. . .

Classic Japanese lack of responsibiity shining through right here.

Wed, 02/06/2013 - 10:30 | 3219775 tango
tango's picture

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. 

Wed, 02/06/2013 - 13:14 | 3220393 suteibu
suteibu's picture

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.

Thu, 02/07/2013 - 00:35 | 3222216 boogerbently
boogerbently's picture

"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?

Tue, 02/05/2013 - 22:45 | 3218639 LongSoupLine
LongSoupLine's picture

That's all I need to hear in order to buy more silver.

Fuck you Keynesian pricks. Eat shit.

Tue, 02/05/2013 - 22:46 | 3218641 The Axe
The Axe's picture

Tyler you and Kyle Bass need a little humble pie.....please....

Tue, 02/05/2013 - 23:07 | 3218724 caustixoid
caustixoid's picture

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...... 

Wed, 02/06/2013 - 00:25 | 3218975 Matt
Matt's picture

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.

Wed, 02/06/2013 - 04:13 | 3219245 walküre
walküre's picture

WTF comment of the day

Wed, 02/06/2013 - 04:34 | 3219262 zhandax
zhandax's picture

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.

Wed, 02/06/2013 - 10:31 | 3219783 tango
tango's picture

I would not be surprised if the majority of folks in Europe and the US held this view. 

Wed, 02/06/2013 - 09:47 | 3219604 LawsofPhysics
LawsofPhysics's picture

LMFAO!!!  And where will the captial for the higher wages come from again?  - FAIL.

Thu, 02/07/2013 - 13:47 | 3223422 Matt
Matt's picture

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."

Wed, 02/06/2013 - 07:41 | 3219348 MassDecep
MassDecep's picture

They won't raise IR. They will charge the serfs interest to keep their money supposedly stable....

Tue, 02/05/2013 - 22:47 | 3218646 fonzannoon
fonzannoon's picture

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?

Tue, 02/05/2013 - 22:59 | 3218693 mayhem_korner
mayhem_korner's picture




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.

Tue, 02/05/2013 - 23:05 | 3218718 fonzannoon
fonzannoon's picture

"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.

Tue, 02/05/2013 - 23:19 | 3218767 Water Is Wet
Water Is Wet's picture

I agree with you fonzannoon.  Everybody's gotta make choices they can sleep comfortably with.

Tue, 02/05/2013 - 23:26 | 3218791 fonzannoon
fonzannoon's picture

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.

Tue, 02/05/2013 - 23:28 | 3218799 Water Is Wet
Water Is Wet's picture

I understand where you're coming from.  It's just a bitch right now.

Tue, 02/05/2013 - 23:35 | 3218820 fonzannoon
fonzannoon's picture

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.

Tue, 02/05/2013 - 23:50 | 3218864 mayhem_korner
mayhem_korner's picture



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.

Tue, 02/05/2013 - 23:58 | 3218896 fonzannoon
fonzannoon's picture

He is thanks, and it seems like you have been blessed. Good for you man.

Wed, 02/06/2013 - 00:07 | 3218923 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I lost my job while my wife was pregnant. I understand where your dad is coming from.

Wed, 02/06/2013 - 00:23 | 3218970 msmith9962
msmith9962's picture

Too bad ZH isn't a bar.  I think I would have a great time hanging out with everyone



Wed, 02/06/2013 - 04:16 | 3219246 walküre
walküre's picture

only in Margaritaville

Wed, 02/06/2013 - 04:56 | 3219275 zhandax
zhandax's picture

Fonz, you have seen it here; people apparently loosing it, some leaving.  This is the result of going to sleep at night knowing that one day you will wake up to chaos, but not knowing if it will be tomorrow or 5 years from now.  We have all selected suspected dates for the occurrence, shorted some market big time, and simply drained our accounts of money that would have been better spent on metal of your choice.  This is a war of attrition, and we all have to emulate your father, and determine that we will persevere.  If chance ever favors it, I would be happy to share a pitcher of margaritas with ya.

Wed, 02/06/2013 - 13:26 | 3220435 TraderTimm
TraderTimm's picture

No kidding, it would be a run-down speakeasy with a certain greek symbol on the top of the door. The passphrase would be "Fuck you, Bernanke!"

Wed, 02/06/2013 - 05:00 | 3219279 debtor of last ...
debtor of last resort's picture

When i finally had a job, we went separate. Don't worry, things can change in an eye blink.

Wed, 02/06/2013 - 07:44 | 3219352 mayhem_korner
mayhem_korner's picture



Thank you,  but that was many years ago.  We've since been more than fully restored financially, but the lesson stays with me.

Tue, 02/05/2013 - 23:34 | 3218813 Whiteshadowmovement
Whiteshadowmovement's picture

Hey fonz, full disclosure this is a double post (to the doc originally) but i have the feeling nobody saw it earlier:

Have you ever seen the film "Withnail and I"? Its an absolute classic. Much of it centers around how the 60's were the last great burst of human creativity.

Epic line which almost sounds totally fresh:

"If you're hanging on to a rising balloon, you're presented with a difficult decision — let go before it's too late or hang on and keep getting higher, posing the question: how long can you keep a grip on the rope? They're selling hippie wigs in Woolworth's, man. The greatest decade in the history of mankind is over. And as Presuming Ed here has so consistently pointed out, we have failed to paint it black."

Tue, 02/05/2013 - 23:41 | 3218846 fonzannoon
fonzannoon's picture

I have never even heard of that movie, I have to check it out thanks.

Wed, 02/06/2013 - 00:01 | 3218904 Dr. Engali
Dr. Engali's picture

I did see your post earlier but I couldn't comment, big day at work today. I'm not familiar with the movie, but I will check it out thanks for the recommendation.

Wed, 02/06/2013 - 00:21 | 3218965 Orly
Orly's picture

"Much of it centers around how the 60's were the last great burst of human creativity."

You cannot be serious.

Wed, 02/06/2013 - 00:35 | 3218999 Orly
Orly's picture

The nineteen-sixties?

Psychedlia, The Beatles, Jimi Hendrix...erm, erm..

Drugs, burning your draft card, your bra; the Pentagon Papers, CIA PsyOPs, the brothers Kennedy, LBJ, VietNam, Nixon...

I'm sorry, what?  The 1960s?

Where's the steam engine, the light bulb, cotton gin, the Internet, cell phones, the transistor, the telephone, penicillin, vaccines?

Napalm was invented by the ancient Greeks, so that doesn't count, though the sixties sure saw it put to good, "creative" use.

The 1960's?  The last great time for creativity?

Time to look around and take an assessment of what your life has been like, sorry to say.


Wed, 02/06/2013 - 00:52 | 3219023 Anusocracy
Anusocracy's picture

I like to think of 60s as the Era of the Flower Children Who Didn't Grow Any Flowers.

Wed, 02/06/2013 - 00:57 | 3219036 Orly
Orly's picture

Or ever grow up, for that matter.

It amazes me how they think so much of themselves and how little they gave the world, especially their kids.

Perhaps he meant the last great era of utter destruction?

Aw, hell.  Just let it all hang out, man!  Groovy!

Wed, 02/06/2013 - 01:44 | 3219096 delacroix
delacroix's picture

turn on   tune in  drop out

Wed, 02/06/2013 - 00:56 | 3219027 Whiteshadowmovement
Whiteshadowmovement's picture

I kind of dont understand your comment. Surely you must realize, Im trying to recommend a film and in that vein, Im attempting to explaining its theme. Its not me making this point, its the artist, whether you want to accept that or not is of course up to you.

Several criticst have found it to be a great film, so who knows, right? Maybe you'll see it and judge for yourself.

Besides- "Psychedlia, The Beatles, Jimi Hendrix..."

Some of these things you mentioned are bywords for originality and talent.

I also never said it claims to have been the only creative decade, merely the film asserts that the peculiar circumstances of the 60s provided for a last great burst of creativity that we saw before, but havent seen again.

And dont confuse "innovation" (like all the labor saving devices you mentioned) with artistic "creativity", they arent one and the same.

Lastly, I was born in the 80's, so I really wouldnt know. What I do know is I dont close my mind to art and I hope neither wll you

Wed, 02/06/2013 - 01:00 | 3219040 Orly
Orly's picture

I was born in 1963.  Been there.  Done that.

The "artist's" idea is keen on selective memory, believe me.

Wed, 02/06/2013 - 01:19 | 3219064 Whiteshadowmovement
Whiteshadowmovement's picture

Well, you gotta give the 60's at least one thing imho, those were the best looking cars ever made from the '61 e-type on...

Listen, art isnt meant to be objective and this film certainly wont prove to you that the 60's were a great decade. In fact, the film is also about the giant hangover that naturally comes after a creative binge like that of the 60's.

The film centers around 2 drunks/addicts and a series of hilarious consequences as they try to get out of the city and try to spend a few weeks in the country. There is an amazing profundity to it that goes way beyond merely marking out the 60's as a decade.

Perhaps youll give it a shot- maybe read the original Ebert review i posted above (really quite excellent) and give it a try, there must be a reason its so well reviewed, at least youll know why you disagree with the critics after having seen it. What is there to lose?

Wed, 02/06/2013 - 01:44 | 3219094 Orly
Orly's picture

I'm with you and I understand your points but to say the last great burst of, that's a stretch and a half.  Okay, musically and artistically, then we can talk.

I'm a big time Beatles fan.  Hendrix (Killing Floor...).  The Who was okay but their lyrics are a lot deeper than people give them credit for.  The Rolling Stones, Janis Joplin, Bob Dylan, you can keep all those guys.  Pink Floyd, I know every word.

Peter Max.  Wonderful art...and can't think of anyone else.

And that's about it for the sixties.

The New Romantic era in the eighties was the rebirth of music, as was the Grunge movement in the nineties.  Nirvana, Pearl Jam.

Now, "music" is basically garbage, though it is trying to make somewhat of a comeback.  Everyone wants to sound like Bruno Mars and that's okay but there's no originality there at all.

It is the same with books.  Producers only want a style that sold last week, so they go for that.  That's why "James Patterson"  writes forty novels a month and they are written with such clarity that a second-grader could finish the entire book in one sitting.

Creativity comes in waves, you understand.

For a movie from the general era that fits the style you are talking about, have a look at "Harold and Maude" from 1971.  It sounds like you would really dig it.

It is at once hilarious on its face but has an underlying social commentary that is really biting.


Wed, 02/06/2013 - 02:07 | 3219116 Whiteshadowmovement
Whiteshadowmovement's picture


Wed, 02/06/2013 - 02:04 | 3219119 Whiteshadowmovement
Whiteshadowmovement's picture

Haha, man I guess we really could debate the merits of the 60's all day, huh? Some real highs and lows for culture and society, thats for sure.

Im with you on most things you mentioned, including the who's lyrics being deeper than people give them credit for.

I think this also comes back to which design era one personally identifies with. I think the modernism we see in car design at the time for me is unmatched. I would really be here forever if i started listing great car designs from the 60's: Ferrari lussos, californias, porsche 911, bmw e9, mercedes sl pagoda etc. etc. etc.

Im a big fan of art deco too though.

Yeah, sure, Harold and Maude is a classic and a great film, ive seen it a few times. The distinction between "Withnail and I" and "Harold and Maude" is that W&I is a such a tremendous film that it stands on its own. It is totally unique and confined to its own genre (Id give you a fuller synopsis but youd be better off going right to the reviews) and would be impossible to duplicate by anyone, ever. Whereas not only could Harold and Maude be rather easily remade, but it to me is in light of todays films, a sort of forerunner to the modern indy genre of touchy-feely "we learn about ourselves, and each other" kind of films. (e.g. jeff who lives at home etc.). I realize it may be rather unfair framing it like that retrospectively but I do get the impression that W&I is a more unique artistic statement, despite how groundbreaking H&M was at its time. By the way W&I was made in 1987 about these characters at end of the 60's.

Best and see you around

Wed, 02/06/2013 - 05:42 | 3219297 jmcadg
jmcadg's picture

Damn missed an interesting exchange (whilst asleep).

Withnail and I is a film classic, in my ultimate top 5. It transcends it's era. Richard E Grant is phenominal, especially as he's teetotal!

Wed, 02/06/2013 - 06:50 | 3219318 Stuntgirl
Stuntgirl's picture

That is the last movie I would have expected to see reccommended here.

A very interesting young man forced me to watch it. Then I had to go home and watch it a couple more times.

Wed, 02/06/2013 - 08:31 | 3219407 solidus
solidus's picture

Yup, that is exactly how I feel.  Anticpating the direction and eventuality but being clueless about the timing.  Going through the day with the knowledge of the world that will come to pass but living in the world that is.  Afraid to talk to too many people for fear of being committed for my irrationality, spurned by the people I do talk to because their approach to dealing with things is to avoid the horror.  ZH is a support group.

Tue, 02/05/2013 - 23:20 | 3218770 mayhem_korner
mayhem_korner's picture



Keep in mind that I'm one of those religious "looneys", if you were not aware.  So I don't lose any sleep over the machinations of the world in which we live or what my lot in it may be.

“Therefore I tell you, do not worry about your life, what you will eat; or about your body, what you will wear. For life is more than food, and the body more than clothes. Consider the ravens: They do not sow or reap, they have no storeroom or barn; yet God feeds them. And how much more valuable you are than birds! Who of you by worrying can add a single hour to your life? Since you cannot do this very little thing, why do you worry about the rest?

[Luke 12]

Tue, 02/05/2013 - 23:35 | 3218817 Sean7k
Sean7k's picture

Fonz, so far, 59 years and I'm still surviving, but then, I have an affinity for chaos... and a large wine cellar...

Tue, 02/05/2013 - 23:36 | 3218827 fonzannoon
fonzannoon's picture

Sean, see my above post. I'm with you man. Great attitude.

Tue, 02/05/2013 - 23:14 | 3218748 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Difference is BOJ is not the lender of last resort in the fiat chain. That is the Federal Reserve who backstop the other central banks indirectly. Also helps the Japanese public unlike Americans are chronic savers. If no one takes the excess and is willing to live within their means you can keep the printing game up longer along with having someone to backstop your debt.

Tue, 02/05/2013 - 23:16 | 3218759 fonzannoon
fonzannoon's picture

Ah classic Bass vs Schiff as to who goes first, the U.S or Japan. We shall see.


Tue, 02/05/2013 - 23:29 | 3218788 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I believe they both will eventually collapse, it is just a question of saturation and that includes public and private. If you firewall the private end out and just owe it to yourself then saturation will be determined by the global market aka debt buying, export/imports, etc. The FED and ECB have plenty of debt that the BOJ excess printing can be absorbed by still. Once those sponges are saturated then it is hari kari time for them.


Frankly I have no idea who goes first but my guess is unless the black swan lands in the US the lender of last resort will be last man standing in the closed loop (besides those that bail out first and go back to asset backed currency). Purely speculation here nothing more.

Wed, 02/06/2013 - 01:09 | 3219057 dtwn
dtwn's picture

"They mostly come at night......mostly".

"Game over man......GAME OVER!!!!"


I think the US will ultimately be last in many scenarios, but how quickly after everything starts happening is another question altogether.  I think it'll be Greece and Portugal together within a short period of time, followed by a period of time with chaos at first and then pehaps some stability for a bit (period of months most likely), then it will be Spain and Italy that will come to a final reckoning with their situation.  England has exposure to spain through Santander, so I think that'll get the ball rolling in England.  Rember, the UK has a huge (600% GDP) fianancial sector debt load, much higher than any other nation's:

I don't have any idea of where that will head though.  I think that somewhere around the time the UK has problems is when Japan will have issues.  I just think it'll take the markets and global society a while before they can accept that strong economies can indeed fail.  They've kept Greece on life support for 3+ years and they're the 34th economy in size.  Granted, once stuff starts happening it snowballs and events occur more rapidly, but I think the general order of events will be maintained.  Japan is the 3rd largest economy.   UK and Italy are #s 7 and 8.  After or around the same time as Japan I think the US will finaly face its issues.  But prior to this, with everything else out there going on, I think there will be  a knee-jerk flight to the dollar because it has pretty much been ingrained throughout our lives (collectively) that it is a safe asset, it will take time to reverse that psychology.  Reading the drhousingbubble blog, it's clear there are real estate bubbles happening again.  Nobody learns!  

Using the zerohedge debt calculator:

Using 4% interest, 2% GDP growth, and a 5% deficit assumptions results in a debt of about 19.5T by 2022.  Then making a couple different assumptions of tax revenue (20 and 40% GDP), this results in anwhere from 18 - 36% of tax revenue being spent on interest payments.  I think Japan is at 25% now.

As anxious as I am to get this thing over with already, I think it will take some time to play out where we see a continued deterioration of standard of living and increased social unrest.  Personally I believe we will see the worst by 2020, so another 7 years.  Global economic resets don't just happen overnight.......until they do.

Wed, 02/06/2013 - 02:06 | 3219124 Cman5000
Cman5000's picture

It's hard to say how this will all play out ? We could have slow orderly collapse or we could have a disorderly collapse ? I'm sure the Romans were in denial until the end.

Tue, 02/05/2013 - 23:21 | 3218772 Crawdaddy
Crawdaddy's picture

Kyle Bass is speculating 20x. His formula is pulled out of a slightly better grounded ass than Abe's but it doesn't mean he is a soothsayer. SHTF at 20x? It more like a range of +/- 20x.

Tue, 02/05/2013 - 22:48 | 3218649 babylon15
babylon15's picture

LOL!  He "urges" them to hike wages!  They will do exactly what companies are doing here - fire all the employees and buy their own stock!

Tue, 02/05/2013 - 22:49 | 3218655 suteibu
suteibu's picture

Don't forget about the robots.

Tue, 02/05/2013 - 22:52 | 3218671 Joe moneybags
Joe moneybags's picture

In addition to asking businesses to raise wages, Mr. Abe should also ask them to lower prices.

Tue, 02/05/2013 - 22:53 | 3218675 Dr. Engali
Dr. Engali's picture

I'm glad to see that the voting in of retards isn't solely limited to America.

Tue, 02/05/2013 - 22:59 | 3218697 fonzannoon
fonzannoon's picture

We don't vote them in Doc, we work with them. It's our passion.

Tue, 02/05/2013 - 22:55 | 3218681 Sean7k
Sean7k's picture

I guess I can look forward to my next trillion currency note. It is one of my favorite collections. I picked up a 100 trillion pengo (hungary) yesterday. Nothing like paper.

Tue, 02/05/2013 - 23:00 | 3218699 magpie
magpie's picture

Don't get your hopes up. Wartime Japan had tokens of porcelain and plastic for money.

Tue, 02/05/2013 - 23:08 | 3218725 Sean7k
Sean7k's picture

Wartime America had 30% silver nickels. Nickel was harder to come by, so they substituted. With the yen numbers as they are, I think a trillion yen note isn't too far off, though I think the trillion dollar platinum coin will retain its' value better.

Tue, 02/05/2013 - 23:16 | 3218739 magpie
magpie's picture

Still, it is only a matter of time until the platinum coin is adulterated with baser metal - would be great though to have one of those platinum forgeries of yore.

Tue, 02/05/2013 - 23:01 | 3218703 kito
kito's picture

sorry but stoking hyperinflation in japan is like trying to burn fresh cut oak........................ramp it up as much as you wont light.......just fizzzzzzzzzz.......and a charred lump...............................

Tue, 02/05/2013 - 23:11 | 3218735 Poor Grogman
Poor Grogman's picture

Incorrect kito

Printing increasing amounts of currency units with which to pay off debt will guarantee it every time.

Not a history buff are you?

Tue, 02/05/2013 - 23:19 | 3218766 Dr. Engali
Dr. Engali's picture

I believe that Japan is eventually going to blow up their currency, however they have been at it for almost 25 years and they still can't beat the deflation monster. So kito does have a valid point. Having said that, if this latest rally in the nikkei can continues, they might blow it up sooner than we think.

Tue, 02/05/2013 - 23:31 | 3218811 Poor Grogman
Poor Grogman's picture

This is the new normal in Japan controlled deflation.

BOJ controls the value of the ¥ (same with most other C/B issued currencies) never the Prime minister or the elected officials.

The c/bs are not going to kill the goose anytime soon.

However if the Government gets control of the levers, then it MIGHT be game on time.

Wed, 02/06/2013 - 02:31 | 3219168 youngman
youngman's picture

I think the Demographics have changed in Japan now....25 years ago the populace was in the know as to what happened..and thought they were doing the new generation..very few of them by the way.... do not they will not buy the bonds to save JAPAN...and the elderly are selling their bonds to live on...

Curriency wars are here......this will be the big event of 2013

The rest of the "world" will not like it....they will not like what the effects are in their countries..

Every week I see less "faith" in fiats....

what has suprised me..and I am sure the truth will come out sometime...but it is going against my Econ 101 the price of PM´s....they seem to be on the sidelines doing nothing....but you get headlines of People, Banks, and Countires buying it...and they are not day trading it...but the price never changes....wierd...I think with everything going on right now it should be $2500 and $50 and ounce...I do not know anyone who would want to sell gold right now...

Wed, 02/06/2013 - 03:48 | 3219235 Poor Grogman
Poor Grogman's picture

It seems that monetization & debt repayment are somewhat in balance just at the moment.

Most people are being squeezed financially and are probably past the point of having much discretionary spending ability to buy physical at these levels even if they wanted to.

I think plenty of large players are just accumulating steadily while keeping their fingers crossed that prices don't move too high too soon...

Wed, 02/06/2013 - 09:07 | 3219484 BeerBrewer09
BeerBrewer09's picture

I'm busy buying lead to protect my commodities.

Tue, 02/05/2013 - 23:12 | 3218742 fonzannoon
fonzannoon's picture

Kito why can't they print themselves into oblivion? If they really put their mind to it I think they can do it.

Tue, 02/05/2013 - 23:22 | 3218775 Poor Grogman
Poor Grogman's picture

For a bit more exciting hyperinflation they could run a reality TV competition to see who could come up with the best inflation generating proposals.

You would see significant progress on inflation after the first episode I'm sure.

The winner could get large cash prizes?!...#hmmm

in that way the whole thing would be done for effectively no cost to Japan at all...

Wed, 02/06/2013 - 14:09 | 3220589 matrix2012
matrix2012's picture

Abe is gonna succeed in setting up the fire.



When Nikkei Is Under Pressure (Finally), Remove BOJ Governor

Why? You can see why. Yen tanks, and the Nikkei Stock index soars by over 4% in one day.

Bank of Japan Governor Shirakawa's tenure was to end in April. Instead, he said today that he would resign soon.

Two BOJ commissioners who opposed the 2% inflation target in the last policy meeting, Takehiro Sato (from Morgan Stanley where he was a managing director and chief economist) and Takahide Kiuchi (from Nomura Securities where he was the chief economist) now say they will do their utmost best to achieve that target.

If you think "WTF?" like I did, that's quite a historical, traditional mentality in Japan. During the warring days in 15th and 16th centuries, it was quite common for the soldiers and lords who were defeated to join the victorious and fight alongside the victor, to atone for the sins of the past of having dared oppose the victor. The game of "shogi", Japanese version of chess, allows the opponent's pawns that are captured to be used again, against the opponent.

Now defeated, the two commissioners will be vigorously push for the 2% inflation target that they opposed.


Tue, 02/05/2013 - 23:24 | 3218729 Yen Cross
Yen Cross's picture

 What a complete and utter fucking buffoon, Abe is. Sure you moron lets raise input costs on manufacturing(via higher labor costs), after you relentlessly screw your currency in the ass over the last 4 months! That guy is one pallet short of a full load of Tungsten.

Wed, 02/06/2013 - 04:41 | 3219268 TotalCarp
TotalCarp's picture

I suspect he is simply a portrait of desperation. The place has painted itself into the corner. The piramid starts to crumble. well they havent tried this shit yet and there arent many things left.. so from their perspective its a "why not?" moment. Chinese and Koreans are eating their lunch. They are too proud/racist to open the place up for immigration and rebalance the demographics.

Desperate people do stupid things. Desperate governments commit mass murder.. no bonus points to figure out how this one plays out. 


Tue, 02/05/2013 - 23:14 | 3218747 joego1
joego1's picture

Hari Kari- the whole country all at once.

Tue, 02/05/2013 - 23:16 | 3218756 Falconsixone
Falconsixone's picture

Just announced a two-month price freeze on supermarket radioactive products.

Tue, 02/05/2013 - 23:21 | 3218773 chump666
chump666's picture

The Japanese once were warriors.

Our leaders are killing us.

Revolt or die.


Wed, 02/06/2013 - 04:43 | 3219271 TotalCarp
TotalCarp's picture

They also once were murderers of women and children. I guess its coming full circle now. Karma is a bitch.

Tue, 02/05/2013 - 23:21 | 3218776 ShankyS
ShankyS's picture

Abe? WTF does Abe Froeman the "sausage king of chicago" frigging know about wages and inflation? Of that Abe - wait - there are no "Abes" in Japan - wait - there are? 

Tue, 02/05/2013 - 23:24 | 3218783 orez65
orez65's picture

It's taking longer to take delivery of physical gold and silver in the US.

Prices at grocery stores keep going up.

Gasoline is up.

Bernake is printing the equivalent of one Apple company every six months.

I think the shit is going to hit the fan in the US before it does in Japan.

Tue, 02/05/2013 - 23:26 | 3218790 magpie
magpie's picture

Yes, one will only find out after the bang who was tapped out the most already.

Wed, 02/06/2013 - 00:35 | 3218997 Matt
Matt's picture

The Canadian Tar Sands, I'm hearing that not only are they not hiring, but people are getting permanent (not seasonal) lay-offs. Which is weird, with oil prices so high ...

Wed, 02/06/2013 - 02:36 | 3219172 dognamedabu
dognamedabu's picture

The bitumen sands are still producing many jobs. Friend of mine recently got hired on to build ice roads to the tune of 10k a month clear with no experiance. I look at the job posting daily and see many many jobs to still be had there. However the industry is getting a very low price for their oil. About half of brent. This is due partly to Obama holding back the keystone pipeline, groups in BC holding back a pipelne to the west coast destined for Asia and an increase in US domestic supplies. Yet I have heard little to no talk from major companies delaying projects. These cos have leases to massive amouts of oil and are there for the long run. 

Thu, 02/07/2013 - 13:43 | 3223407 Matt
Matt's picture

Suncor just took a $1.49 Billion write down on a project they shelved:

Wed, 02/06/2013 - 07:11 | 3219327 goldenbuddha454
goldenbuddha454's picture

Something strange is going on because back in late December they highlighted the Brent options for February being bought in droves at $130.  Somebody knows something and is not telling us. :(

Wed, 02/06/2013 - 07:16 | 3219332 goldenbuddha454
goldenbuddha454's picture

What I'm really thinking is that Israel is going to bomb the crap out of Iran anyday now, so the expectations are high for that to happen thus the forward-looking hedgies are out there innocuously predicting the inevitable.

Wed, 02/06/2013 - 01:02 | 3219043 Alpha Monkey
Alpha Monkey's picture

Mid-missouri here, watched gasoline go up about 10cents a week for the past 3 weeks or so.

Tue, 02/05/2013 - 23:40 | 3218841 bonzo112358
bonzo112358's picture

Being bearish as I currently am I was happy to escape January flat although feeling really stupid.  But the Nikkei up 3% right now?  Really?  The hubris of the policy makers (as well as cnbc talking heads) is getting out of hand (reminds me of the hubris of the AAPL holders over on seeking alpha when it was trading $700 and kept harping that a minor pull back to $650 will be a great opportunity).  Not sure when (which is the important part) the kibosh is going to come down on them but I really hope I have the fortitude to stick with what I see and not what they say.  And just in case I'm the one that gets hit with the train, I'm short via March put spreads.  Days like this want to just make you throw up your hands and give in to the feel good rhetoric that you hear all day long.  Gotta hand it to the bulls though.  They did survive that one day correction yesterday.  That was brutal.

Tue, 02/05/2013 - 23:42 | 3218842 Glass Seagull
Glass Seagull's picture


"Mostly" = "Anti-Totally"

Tue, 02/05/2013 - 23:46 | 3218859 IveBeenHad
IveBeenHad's picture

Dont shoot the messanger but did anyone see Wolf's article in the FT?

He is arguing what many have over the years which is that Japan's deflationary problem stems from excess savings in the corporate sector that has lead to a national imbalances including  a gaping hole for demand.  He is advocating a rebalancing through targeted restructurings aimed at reducing corpoartions retained earnings.  One of his solutions is surprise, surprise wage increases.  

I thought it was timely given all the chatter across the webs.

Tue, 02/05/2013 - 23:51 | 3218867 gwar5
gwar5's picture

I feel bad for Japan, deciding to go down Kamikazi style in a blaze of printing glory to their demise. Eventually to be swallowed up by China, bullied by Japan in the past.




Wed, 02/06/2013 - 00:17 | 3218956 FecundaGoat
FecundaGoat's picture

I feel bad for Europe.  Cheap Toyota's are going to take down the Euro socialists meal ticket!!  (Look at the Euro/Yen over the last three months)

Europe will go first!!

Wed, 02/06/2013 - 02:11 | 3219053 Orly
Orly's picture

Until Draghi cuts rates Thursday morning...

Then it's on like Donkey Kong.

Edited: Cuts, not raises!


Wed, 02/06/2013 - 02:38 | 3219174 ersatzteil
ersatzteil's picture

Germany still has Russia, and Russia still has Germany. Now that's a match made in heaven.

Wed, 02/06/2013 - 00:19 | 3218960 Orly
Orly's picture

Bank of Japan speech from earlier tonight.  Should clear things up quite a bit...

Courtesy Eamonn Sheridan over at


Wed, 02/06/2013 - 00:26 | 3218980 Lord Of Finance
Lord Of Finance's picture

The Japs have made so many good choices throughout the centuries. But when they mess up, boy do they mess up allright!


    This decision will be their pearle harbor of the 21st century. This time the attack comes from with in. A central bank has anounced it will fly over, not with a helicopter, but with a B-52 bomber of its own, with a nuclear war head as the choice of weapon to melt the 2 decade long Japanese economic ice age.

Wed, 02/06/2013 - 07:49 | 3219208 goldenbuddha454
goldenbuddha454's picture

A friend of mine went to Tokyo a few years back and thought he'd have a nice dinner  with his wife and daughter.  They all ordered Kobe beef dinners.  There were no prices on the menus so he just ordered figuring each plate would be $100-200 tops.  He gets the bill at the end of the night:  $1,325.00 excluding gratuity.  Needless to say he shit himself right then and there!

Wed, 02/06/2013 - 00:48 | 3219016 pragmatic hobo
pragmatic hobo's picture

... one can only hope that at some point, before it's too late, that these morons will realize you can't just make things up.

Wed, 02/06/2013 - 01:16 | 3219045 BigInJapan
BigInJapan's picture

I say fuck 'em - they wanted this asshole and his inflation, now they're getting it.

the country imports 99% of its oil, and 60% of its food. Every domestically produced item has some dollar input costs.


I figure we're already at 15%, and couple that with the 20% of GDP the Chinese took with them on the way to the beach in the Senkakus and I think she's gonna pop - SOON. Too damn soon for my liking because I'm here trying to sell my goddamned house!!!

Wed, 02/06/2013 - 02:36 | 3219171 youngman
youngman's picture

Energy is what will kill them...they shut down all their nuke its all import..

Wed, 02/06/2013 - 08:00 | 3219366 goldenbuddha454
goldenbuddha454's picture

They are in a real pickle, yes.  They have a massive aging population, no replacement population coming, an island to live on surrounded by water and radiation,  ever-increasing prices, keynesian politicians, China knocking on their backdoor, an export business that relies on the value of the yen staying artificially depressed,  Chinese smog hanging over their cities, a possible conflict with China over those islands, North Korean test missiles flying overhead etc....

Wed, 02/06/2013 - 01:39 | 3219083 Yen Cross
Yen Cross's picture

 Another 24 hours and the usd/jpy up another 200 pips ready to pop the 94 handle. Just wait until the rest of the world gets pissed off and boycots Japanese shit and the yen loses another 20 handles. The Japs will want to make Sushi out of Abe.

  Every yen cross has gone ballistic since September of 2012. The weekly chart(size) moves are now only second to the GFC moves in late 07-early 08. That prick Abe is good at one thing. ( Making Enemies)

The Japanese Yen is in the Middle of the World Currency War | Sovereign Investor

Wed, 02/06/2013 - 01:46 | 3219099 syntaxterror
syntaxterror's picture

Get to work Mr. Chairman! Don't let this fuck out-devalue you!

Wed, 02/06/2013 - 02:05 | 3219123 steve from virginia
steve from virginia's picture



Currency depreciation is a zero-sum game when the country relies on imports ... when its export goods are reprocessed imports. Whatever Japan gains from exports it will spend on imports, particularly the mentioned fuel ...


The deflating effects of higher fuel prices will outrun any inflationary nominal price gains, this will be amplified by Japanese hesitancy to spend money.


Meanwhile, China is certain to retaliate in what it perceives as a 'currency attack'. Informal 'sanctions' against Japanese imports. There is no easy way to outrun what is going on in our economy ... we are all Japanese ... excuse me, Greeks, now.


Wed, 02/06/2013 - 02:17 | 3219145 Mr. Hudson
Mr. Hudson's picture

I will look forward to buying a new Lexus for $5,000.

Wed, 02/06/2013 - 02:22 | 3219158 ersatzteil
ersatzteil's picture

Infration? Seriousry? We have China try take our irands, and you worry 'bout infration?

Wed, 02/06/2013 - 03:08 | 3219198 goldenbuddha454
goldenbuddha454's picture

China to Japan:  Yo Yen na wer shi!

Wed, 02/06/2013 - 04:30 | 3219258 mrjohn
mrjohn's picture

this l r pronunciation joke is a little old is it not?

The Japanese have a sound in between the two, which you probably cannot pronounce.

Wed, 02/06/2013 - 02:33 | 3219170 Me_Myself_and_I
Me_Myself_and_I's picture

Heard never in the last 20 years of the modern era:

"I think I should sell my gold and silver and trade it for paper Yen."

Wed, 02/06/2013 - 07:11 | 3219328 BigInJapan
BigInJapan's picture

I guess you don't live in Japan, then, or else you'd have heard of ZA GORUDO.

Wed, 02/06/2013 - 02:44 | 3219177 youngman
youngman's picture

"I will look forward to buying a new Lexus for $5,000."

Here is the will not be able to...don´t you think GM , Chrysler, and Ford won´t go running to the politicians to do something...tarriffs/duties/import taxes/whatever on the Japanese money manipulators....yes they "SAVE" American Manufacturing....I can hear the speeches already....and then the tariff/trade wars start...just like in the 30´s....same ending I bet...probably Japan and China start the end the repeat of history...because there is a rumor there might be oil by those islands...and guess what? Both Japan and China want it.....

Wed, 02/06/2013 - 03:05 | 3219195 goldenbuddha454
goldenbuddha454's picture

Memo from Christina Kirchner to Abe:  Ben says wage hikes are not necessary unless you fear their will be a run on food, ammo and the banks.

Wed, 02/06/2013 - 03:09 | 3219200 Lost Wages
Lost Wages's picture

Doubling or tripling wages ought to do something.

Wed, 02/06/2013 - 03:19 | 3219210 Wolf in the Wilds
Wolf in the Wilds's picture

This guy is an idiot.  There will be hyperinflation because the BoJ will have to monetise not just new JGB issuance but all secondary market selling.. just to keep the government solvent and the banks alive.  What a nut job.

Wed, 02/06/2013 - 04:29 | 3219254 mrjohn
mrjohn's picture

Unless you read Mr Abe's quote in Japanese you can't really pick holes in his choice of qualifiers.

He has a point on wages, they have been stagnant for years and this has been a drag on the economy, even in periods of growth the benefits have not been passed onto the workforce but have been stashed away in corporate piggy banks, or cycled into the pockets of the select few, who tend to stash it away rather than spend it.

Japan does need to loosen up if it is going to get its mojo back, the people are tired and grumpy.

Wed, 02/06/2013 - 05:08 | 3219281 MyBrothersKeeper
MyBrothersKeeper's picture

One thing i've never understood about Keynesian mindset is how the printed money is distributed.  Logic would tell you that if you REALLY believed you can spend your way to prosperity via government stimulus/printed money than the money should go directly to those who most directly impact the economy:  consumers.  You know those real people responsible for 70% of GDP. And while I agree some infrastructure spending would likely jumpstart some segments of the economy, it is just a small amount in the overall picture as it is not post WWII in the US where expansion is rampant and roads etc have a direct impact on the expansion of the economy.  Speaking of which, why hasn't anybody questioned the mostly wasteful half of the Sandy Relief bill (a cooll 30 B) hasn't gone to this infrastructure?

Anyway, my point is the US has rung up 16 T + in debt but very little has gone to infrastrructure and even less has made it's way to the average US consumer. That 16 T given directly to US citizens would amount to 53k+ per each person or over 200k for each family of four.  This would have allowed them to pay off debt, buy/fix a house, invest etc etc.  Instead we poured it down ratholes like Afganistan, Solyndra, and the corrupt banking system and what have we gotten?  Certainly not higher wages, higher employment, or a real recovery.  Back to Abe, someone should tell him that higher wages are a product of an expanding economy driven by competition not government control and manipulation.  Just like the US, lower wages are created by govt not promoting transparency and competition in the marketplace. The thought that you can flood the economy with misallocated capital and not cause inflation is matter what the "official" CPI number is. Just ask Argentina or any average working American for that matter. Financial repression is causing diminished quality of life.  Once government spending is curbed watch as the corporate profits start to dry up.

In the end though, Japan's demographic issue complicates their situation a great deal. And as Kyle Bass says, a 3% rise in rates in Japan would put the amount of tax revenue being used just to pay debt interest at 100% from it's current 25%.  At that point it's game over, the yen is worthless and the big haircuts and corresponding CDS's start to unwind.

Wed, 02/06/2013 - 09:34 | 3219562 Shizzmoney
Shizzmoney's picture

I'll give the guy credit - unlike Obama, at least this guy TALKS about wages.

It does make me think - if the super inflation happens, due low wage workers go galt on places of employment here?

Wed, 02/06/2013 - 10:09 | 3219683 Harrison
Harrison's picture

You just hate Japanese wage earners. Meanie.

Wed, 02/06/2013 - 11:05 | 3219924 caShOnlY
caShOnlY's picture

When the history books are written the turning point for the start of the "Greatest Depression" will be NOW.   Japan marks the episode whereby Central Banks no longer act in unison but in solitude.  Japan's moves and motives are now absolutely self centereed to maintain exports.  This is finally going mainstream and points to what most of us already know:   The global ship is sinking.  

Currency wars, trade wars, global wars.  Very soon we're going to party like it's 1929!!!!! 

Wed, 02/06/2013 - 13:16 | 3220336 matrix2012
matrix2012's picture


The City of London financial empire nexus manipulates situations to wage global wars: Mike Billington

A prominent analyst tells Press TV that the London-based empire is after waging war between the US on one side and Russia and China and other Asian nations on the other side to maintain its financial power.

The US’ arms sales to China’s and North Korea’s neighbors appear set for significant growth amid regional security jitters. Washington’s provocative decision comes as territorial disputes between China and Japan over a disputed group of islands in the East China Sea are raging. Meanwhile China’s Foreign Ministry has warned about infringement of its sovereignty by Japan with regards to the islands.


US miscalculated China-Japan row

Interestingly, in the interview, it's mentioned that the ex-Tokyo mayor, Ishihara, the crisis trigger is the man of The Financial Empire Nexus.


China Joins Russia: Warns vs. Obama Drive for World War

"With Obama threatening to go to war against Syria and Iran, countries with which both China and Russia share important strategic and economic interests, the encirclement of these great powers with ABM systems must be recognized as further confirmation of Lyndon LaRouche's warning that Obama and his British sponsors are preparing to unleash global thermonuclear war. While London may prefer that Russia and China capitulate to the dark age economic policies and colonial "regime change" methods being implemented on behalf of the British-centered financial empire, it is increasingly evident that neither of these great powers will submit, and the Empire is thus marching the world into Hell.

The announcement of a U.S. ABM system for Asia came from Madelyn Creedon, Assistant Secretary of Defense for Global Strategic Affairs, speaking at a conference in Seoul. Creeden said that the U.S. plan included two sets of trilateral talks—one with Japan and Australia, another with Japan and South Korea.

China's response was immediate—and as blunt and unambiguous as that of the Russians. On March 29, the Global Times, an official paper of the ruling Chinese Communist Party, directed at foreign readership, published an editorial (see accompanying box) which stated that China's Asian neighbors "must seriously ponder the consequences" of their participation in the new ABM structure. "North Korea and Iran are named by Washington as the targets of the missile defense system," the editorial stated, "though it is clear the real targets are China and Russia.

The editorial says that China will have no choice but to "balance out the system's impact," which, it says, could include improving China's nuclear weapons "in both quantity and quality," and the development of "offensive nuclear-powered submarines."


Do NOT follow this link or you will be banned from the site!