Consumer Confidence Collapses In Japan

Tyler Durden's picture

Submitted by Pater Tenebrarum of Acting-Man blog,

As a little addendum to our recent ritual lambasting of Abenomics, here are the  latest news on Japan's consumer confidence – the reading, mind, is from March – before the introduction of the higher sales tax:

“Japan’s consumer confidence fell in March to the lowest level since August 2011, a reading that may tumble further this month after a sales-tax increase on April 1 sapped the public’s spending power.



The reading of 37.5, down from 38.5 in February, was released by the Cabinet Office in Tokyo today. About 90 percent of respondents to the survey expect prices to rise over the next 12 months, the highest in comparable data back to 2004.


Prime Minister Shinzo Abe risks the public souring on his campaign to sustain growth in the world’s third-biggest economy as prices start to rise while wages stay stagnant. Weaker sentiment could make it harder to drive a rebound from a contraction forecast this quarter, and raise the odds that the Bank of Japan adds to its already unprecedented easing.


“Consumer sentiment has been undermined to a large extent by rising prices,” Goldman Sachs Group Inc. economists Naohiko Baba and Yuriko Tanaka wrote in an e-mailed note before the release. “We expect a major retreat in sentiment from April as the tax hike drives inflation.”


The confidence reading was 39.9 when Abe took office in December 2012, and rose to 45.7 in May last year — the highest point during his current term as prime minister. The Topix index of stocks is down more than 10 percent this year after soaring 51 percent in 2013.


Confidence dropped in all five components in the survey, with willingness to buy durable goods dropping the most, down by 2 to 30.8.”

(emphasis added)

In light of yet more damning evidence of failure coming to light, we are moved to make a prediction about the near term future of Abenomics.

It isn't going to be abandoned just because it is failing. Instead, we are hereby confidently predicting a 'flight forward'. Instead of relieving the increasingly sapped and demoralized Japanese consumer from the scourge of rising prices, the pump priming effort will be increased even further. Fresh inflationary measures may well be announced at the next BoJ meeting already.

Anyone want to bet?

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Badabing's picture

On this day in history thirty pieces of silver paid for a contract on an important political person.

The same thirty pieces of silver bought a large parcel of land in a world center city.

The pieces of silver probably used, where the shekel because it came from the temple.

This coins weight is around 22 grams. 22 x 30 = 660 divided by 32 = 20.625 oz or around $405 in today’s money. Does this sound like the correct price to you? Cursed is the man that uses faulty weights and measures!

Happy Easter ZH

remain calm's picture

I will bet you a Quadrillion Yen in 2020

Manthong's picture

Um.. I do not understand..

Outside of the earthquakes, the volcano’s, the tsunamis, the radiation and the JGB nuclear explosions what is there not to be confident about over there?

(..except maybe China or North Korea)

813kml's picture

The Japanese still make topnotch anime and tentacle porn.

Manthong's picture

I have a vague understanding about the anime thing..

but I not, under any circumstances want to know about oriental things regarding tentacles.

max2205's picture

It dropped because they wish their houses went up 7% a year or a month like China s

ilion's picture

Can anybody recommend the easiest way to short JGBs? Are there ETFs?

Not Too Important's picture

Tentacle porn is what .gov is doing to us daily. At least the Japanese seem to use a lot of KY. Not so in the West.

franzpick's picture

Voyeurism isn't what it appears to be.

NoDebt's picture

I gotta tell ya, I thought I had been around enough that I had heard of just about everything.  Until you posted "tentacle porn".  I just stared at the screen for about 30 seconds, blinked a few times and said out loud "no shit?"


Manthong's picture

the evil I have tried to distance myself from came back today..

damn you all..

I have to go to church on sunday to beg foregiveness.

Snoopy the Economist's picture

You saved me from googling it. There's 30 seconds I'll never recover. That' just stupid.

813kml's picture

It falls under Rule 34 of the Intertubes Handbook.

Mr Giggles's picture

I just found a suit case in China, full off Yen, Raise ya 2 Quadrillion.

Ham-bone's picture

Sept 1990 - US and Japanese 10yr Bond yields were within 80bps (8.82 vs 8.02%). 

Japan peaked in '90 @ 8% and moved to sub 1% yields in 9yrs time...a 90% reduction in financing costs

US peaked in '81 @ 17%+ and has moved to sub 1.5% yields in 31yrs 89% reduction in financing costs

Japan now .6%, US 2.7%

now - who hits sub zero first

pods's picture

31.1 in a troy oz. (metals weighed in troy oz)


Unknown Poster's picture

true, 22 grams < 1 oz. Less than $20.

Manthong's picture

.. just to be a tad more accurate  31.1034768..

but you guys have the right idea...


Cthonic's picture

Would you like to buy some silver?

zerozulu's picture

I wonder when Japaneses had confidence, ever?

Oh regional Indian's picture

Anyway nothing ever collapses in Japan, it can only coRRapse!

Baad paafomaance!

Otsukaresama desu!


Manthong's picture

OK.. let’s get this right..  

Before the Federal Reserve Bank Act, and when the Constitution of the United States of America was the set of guiding principles in law, the dollar was defined as an ounce of silver and twenty of them equated to one ounce of gold (twenty dollar gold piece)…

Then the Fed happened in 1913, along with the destruction of the rights of the states (17th Amendment) and the income tax (16th Amendment).. that established what you kids will come to know as the end.

Now your dollar is worth about 3 cents of what it was back then.

It’s just amazing that it took a little over 100 years for the bankers to destroy the United States of America.

..and oh geez.. let us not forget about the cousin of Theodore who used the depression that the democrats inflicted on the nation to steal the little gold in possession of the citizens.

Actually, FDR just wanted to get the large amount of gold that was in the possession of the (small, local) banks who still felt it necessary to have some real fractional collateral for their loans..

He then, by executive order (you should be very afraid of that ability) revalued the gold he stole by +40%.

Consider voting for obama in 2016..  he might use an executive order to inflict himself back on you.



seek's picture

In the 1980s everyone thought they'd take over the world, and there were plenty of Japanese wives dropping 1000s per bet at the tables in Vegas, I was there to see it.

They were just ahead of their time with printing and enjoying the early adoption of free trade. Now, no so much.

It's trippy watching late 80's/early 90's films where Japan's strength is a key plot point. I think "Rising Sun" was probably one of the last examples. Remember "Die Hard" took place in the Nakatomi Plaza in LA.

How far they have fallen. Imagine when the US does the same.

zerozulu's picture

Two things I heard there a lot at that time. Yen is going to be the world reserve currency and Japanese cars have left German cars behind.

Manthong's picture

last time I played Pebble, they owned it.

oklaboy's picture

is that a glow I see coming from Japan? 

Smegley Wanxalot's picture

What Japan needs to boost the economy is a PR campaign focused around bunch of new J-Pop videos with cute girls singing "be confident and buy."

After all, that worked great for them a year ago.

Kirk2NCC1701's picture

This is not yet a problem for TPTB:  They will simply "PRINT CONFIDENCE".

Print Yen, print positive and upbeat news, until the CONfidence is bouyed again.  Nice people, but they do whatever the US tells them.  But then, you would too, if you were so under its thumb and dependant on it for trade.

813kml's picture

The US is still taking advantage of Japanese guilt over WWII.

ParkAveFlasher's picture

I read that as "gilt".  Agree, both ways!

813kml's picture

Ha, just looked up the definition of "gilt".  Learn something new every day.

Jack Burton's picture

Breaking News. The head of the Fukushima reactor has openly admitted that the TEPCO  does NOT have control of the reactors as they have been claiming. He admits TEPCO does not have control of the radioactive water either. Obvioulsy something bad is still going on, they NEVER admit failure at a nuclear reactor site. As I posted a half dozen time, 3 melted cores have broken containment, all TEPCO can do is flush water over them. This is not control this is a desperate measure to keep them cool and prevent them going hot again and continuing to melt down. So much ground water leaks into the melted core area, plus the TEPCO water cannon, noway on earth all that radioactive water can be contained, it flows to the sea, into the water table and into the basements of the reactors. A nuclear expert who cleaned up 3 mile island said 40 years was a fast timeline to clean up the meltdowns. WHy so long he was asked. Because any human getting near the cores would get a lethal dose. SO, they must dream up robots to walk into damaged containment areas and the robot must dig down and access cores that nobody even knows where they are sitting. That will need a quantum leap in robotics! So, 40-50-60 years to clean the site. Decades of highly radiactove water, and god only knows what is going inot the air. When the liar in cheif at Fukushima Admits "Not having control", it might be time to admit to a serious problem going forward.

Not to mention the US Navy sailors the Pentagon sent into the zone to get radiated and then lied too.

JustObserving's picture

Here is one:

Out of control: Fukushima manager admits to ‘embarrassing failure’

Published time: April 18, 2014 08:18 
Edited time: April 18, 2014 08:52


The manager of the stricken Fukushima nuclear power plant has admitted not having full control of the facility. Contrary to the statements of the Japanese PM, TEPCO’s Akira Ono said attempts to plug the leaks of radioactive water had failed.


"It's embarrassing to admit, but there are certain parts of the site where we don't have full control,"Ono told reporters touring the plant this week, reported Reuters. Last year, the Japanese PM attempted to assure the world that the situation at the stricken nuclear power plant was under control.


Bunga Bunga's picture

Human failure? They still have humans? WTF?

Not Too Important's picture

All the nuke qualified workers have hit their lifetime rad limits. TEPCO is now, through their Yakuza subs, sweeping up homeless people to work there. Or 'slave' there - their room and board is deducted from their 'pay', and when they get sick they're dumped somewhere far by bus, never to be heard from again.

Soon no one will be able to work there, and then, when Fukushima Daiichi becomes a massive radiation radiator, it will be too hot to work at Fukushima Daini, just south, and then those reactors will go up, too. NPP's can't survive without 24/7 staff and outside power. Remove either one and BOOM!

What we call 'Fukushima' is just the first domino of many, many Japanese NPP's going tits up. All into the jetstream west at 3,600 mph.

Enjoy your Easter. There aren't many left.

Not Too Important's picture

Here's a start:

'Manager of Fukushima Plant: “We have to pay for what we have done” — “Repeated efforts have failed” to bring site under control — “It’s embarrassing to admit”'

"The manager of the Fukushima nuclear power plant admits to embarrassment that repeated efforts have failed to bring under control the problem of radioactive water, eight months after Japan’s prime minister told the world the matter was resolved. [Tepco] has been fighting a daily battle against contaminated water since Fukushima was wrecked by a March 2011 earthquake and tsunami."

Not Too Important's picture

Here's another leaking water story:

'NHK Special: Extremely toxic water 4,000,000 times gov’t limit in trenches between Fukushima reactors and ocean — Experts: “Source of contamination for Pacific” — “Levels too high for them to get more precise look at situation”'

"A network of trenches runs between the reactor buildings and the shore. They are flooded with extremely radioactive water that’s been trapped** there since the triple meltdown. Tepco data shows concentrations of cesium up to 4 million times above the government safety limit. Engineers estimate that the trenches hold about 15,000 tons of toxic water but radiation levels are too high for them to get a more precise look at the situation. Some experts point out these trenches are a source of contamination for the Pacific Ocean."

thestarl's picture

How about common fucking sense

nightshiftsucks's picture

Yeah I dont get the aircraft carrier thing,you would think that the radiation sensors would always be on.

Not Too Important's picture

They are. In that part of the world, every little bit of radiation is monitored from dozens of monitoring stations, surface and space. The US government sent them in anyway. Along with a skeleton task force, and a number of US merchant marine vessels. Thousands of sailors, from boiler guys to Captains, all going to die one of the most horrible of deaths - from radiation poisoning.

'No doctor can explain what’s happening to Navy officer’s body — “I’m basically kind of deteriorating” after Fukushima radiation exposure — My leg is 17 centimeters smaller, same with my right arm — Radiation levels missing from medical records'

And, in the end, all for nothing. Nothing was accomplished, other than (possibly) helping to protect the reputation of the nuclear industry.

Not Too Important's picture

And if you live in New Mexico, or anywhere east of there, from Maine to Florida:

'Crews retreat after nuclear material found at WIPP — Officials: Correct to turn back, contamination was increasing — Robots brought to site for radiation levels too high for humans — ‘Significant amount of information’ will be revealed to public in next few days'

In the US' only deep hazardous nuclear waste dump, hundreds of thousands of waste containers are starting to blow, and there doesn't seem to be a permanent, safe way from keeping it from coming up the air shafts to atmosphere.

'‘Container fire’ at WIPP may have resulted from ‘spontaneous combustion’ — Expert: “Could’ve crapped up a whole lot of real estate down there” — U.S. radioactive waste disposal system crippled?'

A lot of plutonium . . .

TradingTroll's picture

"No doctor can explain what’s happening to Navy officer’s body"


BS. Lots of similar cases among Chernobyl liquidators

Frank N. Beans's picture

so he admitted what everybody already knew.  All they are doing is putting contaminated water into tanks, and they have to keep building more tanks, ad infinitum, if that is even possible. 


Oh regional Indian's picture

Supply sidism run wild...their only solution is make MOAR SHART!


I Write Code's picture

Well you'd think they could filter out 90% or better of the principle isotopes, not cheap but better than building tanks to hold the entire Pacific Ocean.

But having three runaway cores boiling away there for the next 50 years is pretty horror-show, and just let them dry out for an hour and see what happens next.