This page has been archived and commenting is disabled.

Things That Make You Go Hmmm... Like Is Japan Totally F##ked?

Tyler Durden's picture


We have detailed the straitjacket into which the Japanese have been strapped for the past two decades numerous times in the last few years (in great detail here)  but as Grant Williams leaned back in his most comfortable chair after reading an article about proposed changes to the GPIF (Government Pension Investment Fund), Japan’s public pension fund; the thought popped into his mind - "Japan really is totally f##ked." What led him to that well-thought-out and eruditely expressed conclusion? Read on...


In an interview with CNN’s Fareed Zakaria earlier this year, Abe explained the true significance of the third arrow:

“What is important about the third arrow, structural reform, is to convince those who resist the steps I am taking and to make them realize that what I have been doing is correct, and by so doing, to engage in structural reform.”

Read that again.

Yes folks, the important part of structural reform in Japan is to convince people that Abe is correct. If he can convince them he is right, they will have engaged in structural reform.


You should be.

This is how Japan works — or doesn’t.

Immigration reform has been widely recognized as the only answer to Japan’s crippling demographic problem for well over three decades. Nothing has been done about it.

How about the “Wage Surprise” — increasing wages on a national basis — hailed by Abe as the key to lifting Japan out of the doldrums, and a key feature of Abenomics?



Markets will eventually tire of Abe’s continual promises that more is coming, so he desperately needs to somehow break the entrenched deflationary attitude in Japan.

(WSJ): In a survey of 1,000 consumers on March 29-30 by broadcaster Fuji News Network, 69% said they had not made any special purchases ahead of the sales tax rise, and 77.4% said they didn’t feel an economic recovery was under way.

Good luck with that attitude problem, Shinzo.

This week we got a look at how Abe is faring with one of his promises, that of guaranteed 2% inflation.

Core CPI (excluding food and energy) rose 1.3% in March — unchanged from the previous month and lower than analyst forecasts.

Of course, that was taken as a sign that further easing by the BoJ would be forthcoming...

And round and round it goes... until it stops.

The briefcase in Pulp Fiction ONLY works because we DON’T find out what is in it.

Abe’s third arrow can be loaded into the bow, but it can’t be fired once and for all, because if it IS fired, the game is up. There will still be continual promises of more to come, and markets may buy into that for a while; but, like all central bank-induced “boom times,” Abenomics has a shelf life, and that is nearing an end.

The changes at the GPIF are potentially disastrous, and Kuroda’s BoJ and Abe’s government are desperately trying to MacGyver their way out of an impossible situation, armed only with hollow promises and faith, when what they really need is duct tape and a Swiss army knife.

Abenomics is a plan by which to change Japanese behaviour; but as anyone who has spent any time in that wonderful, perplexing country will tell you, the Japanese do NOT change their behaviour — even when facing a demographic disaster.

Sorry, but Abenomics is actually nothing at all.


To understand why it's all smoke and mirrors... here is Grant Williams fill letter:




- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 05/02/2014 - 22:07 | 4722657 Yen Cross
Yen Cross's picture

  KAMPO?   It's amazing how an (4) letter acronym changes BoJ Poli 

   I hedged aud /Jpy for the Sunday open. I think usd/jpy will breach the 101.378 area.


Fri, 05/02/2014 - 23:48 | 4722956 DeadFred
DeadFred's picture

I'd love to hear your reasoning.

Fri, 05/02/2014 - 23:51 | 4722962 TheRedScourge
TheRedScourge's picture

There should be a movie about the Bank of Japan. Suggested title: "Tokyo Grift".

Sat, 05/03/2014 - 00:37 | 4723015 prains
prains's picture about

Land of the Rising Bum

Sat, 05/03/2014 - 00:45 | 4723029 Oh regional Indian
Oh regional Indian's picture

"Cogito Ergo Bum"...ori -2003

Sat, 05/03/2014 - 02:12 | 4723117 wintermute
wintermute's picture

Even Godzilla has been hijacked to New York. If Japan gets it back just imagine all the Abenomics stimulus from rebuilding the damage...

Sat, 05/03/2014 - 07:04 | 4723260 MeMadMax
MeMadMax's picture

Immigration reform???

They don't let muzzies in, which is a good thing...

Reform, not... Japan may be the last safe place on earth, if they let you in...

Sat, 05/03/2014 - 12:53 | 4723859 Ahmeexnal
Ahmeexnal's picture

Time for Shitzo Abe to take a swim in one of Fuk-u rod pools.

Sat, 05/03/2014 - 18:06 | 4724584 DeusHedge
DeusHedge's picture


Sat, 05/03/2014 - 19:15 | 4724682 lotsoffun
lotsoffun's picture

yes!!  the solution to all the wealthy, educated countries economic problems are to bring in massive amounts of ignorant, uneducated, poor people.   it makes perfect sense.



Sat, 05/03/2014 - 14:03 | 4724070 Monty Burns
Monty Burns's picture

13 million Latin American welfare claimants would solve Japan's problems.  I have no doubt.

Sat, 05/03/2014 - 03:25 | 4723160 A Nanny Moose
A Nanny Moose's picture

"Fast and Spurious."

Sat, 05/03/2014 - 00:40 | 4723020 Oh regional Indian
Oh regional Indian's picture

Japan....poor Japan. the Fed's whipping station....the nuclear industry's test bed, the culture creators dream, Japanese nightmare....

All because of flee energe....

Even America, free energy, only it was everyone elses...

Sat, 05/03/2014 - 11:47 | 4723622 Jam Akin
Jam Akin's picture

Debtzilla Versus The Egomonster

Fri, 05/02/2014 - 21:35 | 4722659 Duc888
Duc888's picture



No more so than USSA.


They have a radioactive problem. We are feeding on our own flesh.

Fri, 05/02/2014 - 21:55 | 4722713 Oldwood
Oldwood's picture

We always fall back on cannibalism when all else fails.

Fri, 05/02/2014 - 21:57 | 4722720 monkeyboy
monkeyboy's picture

Soilent Green in 3...2...1...

Fri, 05/02/2014 - 22:46 | 4722857 Incubus
Incubus's picture

We've been feeding on one another "spiritually" for decades.  It's only a small push to the physical level.

Fri, 05/02/2014 - 23:56 | 4722971 Keyser
Keyser's picture

With the recent examples of outright contempt for anyone that doesn't "think right", watch for it to get physical soon... 

Fri, 05/02/2014 - 23:40 | 4722941 DeadFred
DeadFred's picture

Yes, I was thinking similar thoughts when he said there is no option other than immigration reform. Hmmm, engineered MERS virus, thermonuclear war, mandatory suicide, lots of other options for the demographics problem. They'll think about it, what they choose remains to be seen.

Fri, 05/02/2014 - 21:45 | 4722686 Spitzer
Spitzer's picture

"Japan really is totally f##ked."

Thought I walked into one of Kyles seminars.

Is it too early to say that Kyles bets were too early ?

Fri, 05/02/2014 - 22:05 | 4722746 Citxmech
Citxmech's picture
 "Is Japan Totally F##ked?"

What is "Yes," Alex.

Fri, 05/02/2014 - 22:18 | 4722787 0b1knob
0b1knob's picture

So Japan has been flat on its back for 30 years now.  Such is the fate of top heavy export oriented countries when they fall.  All that malinvestment.

Wait till China goes down.   The bigger they are the harder they fall.   And the longer they stay down.


Fri, 05/02/2014 - 23:39 | 4722940 CrashisOptimistic
CrashisOptimistic's picture

China has oil.

Japan does not.

That is all.

Sat, 05/03/2014 - 00:26 | 4723005 DoChenRollingBearing
Sat, 05/03/2014 - 02:49 | 4723140 Parrotile
Parrotile's picture

China is currently "friends" with Russia, and Russia certainly has oil a-plenty.

Interesting that US activity has if anything significantly strengthened that friendship - which may turn out to be quite a strategic oversight.

Sat, 05/03/2014 - 09:04 | 4723351 machineh
machineh's picture

'oversight' = polite euphemism for 'gross fuck-up'

Sat, 05/03/2014 - 01:27 | 4723066 newbie vampire
newbie vampire's picture

Japan has Fukushima and is happily exporting it to everyone foc.

Sat, 05/03/2014 - 00:01 | 4722978 Keyser
Keyser's picture

If Japan has limped along for the last 30 years without collapsing, think how long the USSA can carry off the charade...


Sat, 05/03/2014 - 00:10 | 4722988 CrashisOptimistic
CrashisOptimistic's picture

There was still cheap oil 20 yrs ago.

Fri, 05/02/2014 - 22:09 | 4722759 Yen Cross
Yen Cross's picture

 It's amazing? You Just show-up? Disgraced Governer and all?

Fri, 05/02/2014 - 22:58 | 4722879 dewasw
dewasw's picture

why is it a disgrace to like pussy, unless You like something else.

Fri, 05/02/2014 - 23:05 | 4722893 Yen Cross
Yen Cross's picture

     Yer getting there Junior Spalding.

Sat, 05/03/2014 - 11:46 | 4722983 dewasw
dewasw's picture

Try as you may to discredit Spitszer, he was more of a patriot than most politicians and took steps to end/slow down gov't CORRUPTION and that is why he got the see eye aa axe.


ps..... FU on the spaulding comment



Fri, 05/02/2014 - 23:46 | 4722953 Yen Cross
Yen Cross's picture

    You let Cuomo mess with you and also fucked some ugly douche, and we're supposed to vote for you're worthless ass?

Fri, 05/02/2014 - 21:46 | 4722687 TeresaE
TeresaE's picture

Wonder if the Japanese people feel the same pit in their stomach when their gubment lies to them and tells them it's sunshine and unicorns?

I bet they do.

Japan is facing the same thing all of us in the West are, the gubment has spent and borrowed it all, they continue to do more of the same while our standard of living is obliterated, and they come up with new and better clusterf*cks to wipe out more of the Middle and gift it to the ends.

Immigration reform cannot fix resource scarcity.

No jobs, high import expenses, mostly imported goods from food to medicines to energy and computers.

What part of MORE people fixes that?

"Experts" crack me up, yes it would "fix" (by can-kicking once more, if jobs are available) pensions and social security - for a while, it can never be fixed permantly as pensions are fiscal impossibilities no matter how badly we wish it were not true.

But more people won't solve the problem of too few consumer dollars, too few non-government/fiat jobs, and ever-increasing costs to just survive.  As a matter of fact, it will make it worse.

No matter, I'm sure we'll keep applying solutions for a different world and time to our modern problems of overcapacity, overpopulation and over-complexity.  More capacity, more complexity and more population will surely fix the problems that they have alredy caused.

Sat, 05/03/2014 - 05:16 | 4723198 zhandax
zhandax's picture

Did I read that correctly?  I thought 2% inflation meant 2% per annum.  Not per month.

Fri, 05/02/2014 - 21:50 | 4722703 Grouchy Marx
Grouchy Marx's picture

It must be annoying to TPTB when the people refuse to dance to the music played for them.

Fri, 05/02/2014 - 21:59 | 4722726 Oldwood
Oldwood's picture

They have always considered us stupid, so this only confirms it further. It would never dawn on them that the people may know better than they. It always falls back on the religious fervor. Anything is possible if we just believe strongly enough. They are doing it for us.....sure.

Sat, 05/03/2014 - 01:06 | 4723048 RafterManFMJ
RafterManFMJ's picture

Oh but we are dancing ... Danse Macabre.

Fri, 05/02/2014 - 21:56 | 4722715 darteaus
darteaus's picture

Print money since 1989, double down, double down and quadroople down, and you end in the crapper?

Who is that a surprise to?

Time to declare war!

Fri, 05/02/2014 - 21:57 | 4722724 FieldingMellish
FieldingMellish's picture

War is good! War is Peace!

Fri, 05/02/2014 - 22:01 | 4722729 Oldwood
Oldwood's picture

The "cleansing". What better way to make a whole new crop of believers.

Sat, 05/03/2014 - 05:24 | 4723204 trader1
trader1's picture

Time to declare debt jubilee.

Fri, 05/02/2014 - 22:10 | 4722764 bardot63
bardot63's picture

Grant Williams always gets 5 stars.  There are precious few widely read observers, out of tens of thousands, who down the road will be seen as having been prescient.

Fri, 05/02/2014 - 22:14 | 4722778 holdbuysell
holdbuysell's picture

Grant Williams should put all those 'Hmmm' volume intros together in a book someday and have a fantastic lookback on just how delusional and collectively insane the world had gone.

Great job again, Grant!

Fri, 05/02/2014 - 22:17 | 4722784 alfred b.
alfred b.'s picture


   a Waterloo always comes to the greedy ignorant & so-called fixers who play this absurd money game.


Fri, 05/02/2014 - 22:25 | 4722807 The Blank Stare
The Blank Stare's picture

The farming mafia JA is a megabank. They control everything from the fertilizer sales to the price offered to the farmers for their products. The farmers still hold a lot of political voting power because the districts were never readjusted to reflect the urban population increase. And this is the LDP's and Abe's base. Any reforms will have to start with destroying JA's power and influence. He can't do it. All he can do is try to get the TPP going, which will serve the same purpose.

Sat, 05/03/2014 - 08:40 | 4723325 suteibu
suteibu's picture

The government has allowed agriculture to decline since the war.  Currently, Japan can only provide about 35-36% of its food needs even as the government continues to subsidize the JA.  However, the TPP would allow the likes of Monsanto, ADM, and other big-Ag companies to purchase/lease large and small tracts of land.  It is likely subsidization of the JA would continue in order to buy their support for the TPP.  It is also likely that the government would subsidize the foreign big-Ag companies under rules of the TPP which allow foreign companies to sue governments who give benefits to locals that they can not have for themselves. 

And, of course, who will work these mega farms?  The TPP opens the door for low wage immigration.

The TPP is a disaster for Japan (or any other Asian nation).

Sun, 05/04/2014 - 04:30 | 4725409 The Blank Stare
The Blank Stare's picture

Totally agree!!


Damn it!! Look what you've gone and done!  I Didn't want to do any thinking today.



Fri, 05/02/2014 - 22:30 | 4722828 buzzsaw99
buzzsaw99's picture

immigration reform? fuck that! japan is totally correct to keep scumbags out.

Fri, 05/02/2014 - 22:46 | 4722855 suteibu
suteibu's picture


Push the English language, allow immigrants to flood the nation and pretty soon, Japan is only a name. 

Despite what those in the West think of Japan, it is a culture worth saving.

Fri, 05/02/2014 - 23:43 | 4722945 Totentänzerlied
Totentänzerlied's picture

"allow immigrants to flood the nation"

Maybe by their standards. If their immigration is worthy of the term "flood," I'd have to say European and Commonwealth immigration is the biblical Great Flood itself - and in each country.

Guess what, things change.

Sat, 05/03/2014 - 07:33 | 4723279 suteibu
suteibu's picture

Europe should be a warning to the Japanese and other Asian cultures who are being encouraged to become citizens of the world to serve the same people causing trouble in Eastern Europe. 

Things evolve naturally.  When change is forced, it is not often beneficial.

Sat, 05/03/2014 - 07:02 | 4723259 Anybody
Anybody's picture

What culture? Japanese kids are even worse than American kids with all their gizmos. Kids don't want relationships. There won't be any culture left in 50 years. It will be America except for the language.

Sat, 05/03/2014 - 07:28 | 4723277 suteibu
suteibu's picture

And, thus, the reason to stop eroding the culture now.  

Sat, 05/03/2014 - 12:00 | 4723655 Comte d'herblay
Comte d'herblay's picture

I would allow a lot more Eurasian Women into the country by the millions , in fact.  

Fri, 05/02/2014 - 22:46 | 4722853 franciscopendergrass
franciscopendergrass's picture

"Core CPI (excluding food and energy)"

Not including food and energy in CPI is like looking at Kate Upton and totally ignoring her tits.

Fri, 05/02/2014 - 22:59 | 4722880 Yen Cross
Yen Cross's picture

    I;m nursing an aud/jpy short.  I'm also long aud/usd.

  Got some call options June .

Fri, 05/02/2014 - 23:45 | 4722948 damicol
damicol's picture

I have some Japanese friends, spending time in Toyama a couple of years ago.

Almost 8 months, but enough to see that even in a sleepy place like that somethings worked.

If that retarded moron Abe or for that matter Dumbfucks like Posen ever got to grips with this reality they would have a heart attack

When a factory closed in Toyama that a locals worked at, they shrugged their shoulders  were not in least upset and said life just goes on.

They simply figured it like this.

 We live here we know everyone here so for us its not too difficult, This gives me much more time to make extra cash, like some bookkeeping or  a delivery run as I'm going the same way, not paid in cash but in kind,  oh here is a new pair of shoes, or here is some beef or chicken  or fix the plumbing and  the family is invited to free dinner at the restaurant.

It doesn't matter what rate they raise the consumption tax, if I pay Y1000 now, I will still pay Y1000 after the raise.

HOW? Simply, i cut my hours I work, pay less tax on salary and leave me more free time to help with friends  where there is no cash  only swap  end result give or take, no net change either in hours of tax paid.

As my friend said, we know the local people we can deal with, does Mr Abe know them too.

Does the half witted  cretin Posen or any of the other asswipes even understand the ability or intelligent or otherwise fucked over people to counteract what they all see as  assholes fucking with their lives.

Trust me, the Japanese are not stupid, they just get on with things and don't make waves, cause a fuss, or  play their hand too open.

They do not care  what any politician wants, they know what they want and they just figure out ways to get no matter what.

The sad thing is that the great American Moron hasn't figured it out yet


Sat, 05/03/2014 - 00:58 | 4723042 Kprime
Kprime's picture

Good story, however, the ending is not entirely correct.  On a much smaller scale to be sure, but happening it is.  Just like the Japanese, we ain't talking bout it but dropping out of the financial system and simply trading is definitely going on.  And, it's growing.

Fri, 05/02/2014 - 23:49 | 4722958 Yen Cross
Yen Cross's picture

  This Spitzer Spitzer clown needs my FIST up his ass! I'll fuck that clown sideways!

Fri, 05/02/2014 - 23:50 | 4722960 intric8
intric8's picture

Japan - teaching the fed res exactly where we are going

Sat, 05/03/2014 - 00:56 | 4723040 zyby
zyby's picture


Sat, 05/03/2014 - 01:01 | 4723044 yogibear
yogibear's picture

Japan is the US Federal Reserve's grand printing experiment. Want to see the future of the Fed's print mania just follow Japan.

Once Japan implodes the US isn't far behind.

Sat, 05/03/2014 - 02:21 | 4723122 ghostfaceinvestah
ghostfaceinvestah's picture

The BOJ will be the first to outright monetize debt.  They will just cancel it.  Gone.

The Fed won't be far behind, followed by the BOE.

Sat, 05/03/2014 - 01:08 | 4723051 RafterManFMJ
RafterManFMJ's picture

There is nothing wrong in Japan that the importation of 10 million Somalis could not cure.

Sat, 05/03/2014 - 01:47 | 4723091 newbie vampire
newbie vampire's picture

Does that include the Al Shahab humanitarian society ?

Sat, 05/03/2014 - 01:47 | 4723092 Oh regional Indian
Oh regional Indian's picture

Amongst other weird traits that have been taught to the Japanese is that they are Xenophobic.

+, the Jews run Japanese mafia+porn+other mind fuckery....

Always, the wrong are let in and the good are pushed out.


Sun, 05/04/2014 - 04:27 | 4723205 trader1
trader1's picture

no one is running anything without the participant's consent.

no demand, no supply.  

no matter how effective the brainwashing.


post edit:

junk and run.  keep doing that.  lack of a reasoned reply indicates lack of understanding.  stick with being a sheep, because that's what you're good for.  


post edit 2:

ok ok.  i'll caveat this some more.  if you are physically imprisoned/tortured, then there's a 99.999% chance you are not giving your consent.  

Sat, 05/03/2014 - 01:32 | 4723071 toadold
toadold's picture

Well from what I've read Japan does have a "norm" that it always returns to but when things get bad enough and they hit a tipping point things can spike pretty weird and violent. What changes have been made are darn near invisible because they were incorporated generations ago.  Women with voting rights would be one. ....Sorry about that.  Most of Asia doesn't like "interesting times" because that usually involves starvation and plague for the bottom and middle classes.  Classic Chinese greeting "Have you eaten today?"

Japanese farmers will hang on to any power they can get for as long as possible, even shortly at the end of WW II some sold their daughters into prostitution to keep the rest of the family from starving to death.  Things like that sink in to the bone.  

Sat, 05/03/2014 - 01:44 | 4723087 AdvancingTime
AdvancingTime's picture

Japan continues to slide towards an economic abyss with each passing day. The writing is on the wall. Japan is facing a wall of debt that can only be addressed by printing more money and debasing their currency.

This means paying off their debt with worthless yen where possible and in many cases defaulting on promises made. Japan's public debt, which stands at around 230% of its gross domestic product (GDP), is the highest in the industrialized world. More on this subject in the article below.

Sat, 05/03/2014 - 02:21 | 4723123 ghostfaceinvestah
ghostfaceinvestah's picture

Nothing debt monetization won't solve.

Sat, 05/03/2014 - 06:46 | 4723247 negative rates
negative rates's picture

Look bozo, they have no external debt, they owe themselves. We on the other hand have tons of extenal debt and a internal debt to gdp ratio of 108%. Spinning numbers is not your forte, stick to words, the camera, and your forward thinking pain, that's what you are good at. 

Sat, 05/03/2014 - 09:13 | 4723365 machineh
machineh's picture

'they have no external debt, they owe themselves'

The jaunty shade of Frank Roosevelt ... HE'S BACK!

And he's tossed away his crutches ...

Sat, 05/03/2014 - 02:15 | 4723118 PGR88
PGR88's picture

How Japan is supposed to save itself by importing millions of lowly-skilled Africans and Southeast Asians is completely beyond me.    The claim that Japan needs mass immigration is bullshit.

Sat, 05/03/2014 - 02:34 | 4723129 elwind45
elwind45's picture

The aim of every country is to export and suppress imports? Each major dollar competitor is currently having trouble maintaining any focus on increasing its exports and having to suppress internal strife. Meanwhile the trend is favorable for a rockem sockem multi-year ad spend and the most favorable election fight ever? And the fed has been riding the yield curve like a segway and been swapping dollars for kitchens sinks! The future is in the briefcase Ringo!

Sat, 05/03/2014 - 03:05 | 4723153 intric8
intric8's picture

japan pulled off a post war miracle (ww2) in a similar manner that germany did after ww1 by relying on the strength of their own currency and industrial prowess, but most importantly by resisting the ploys of the european central banks. That was key. The wily japs recognized the machinations of jew dominated international finance for what it was worth. They can continue to dig themselves out of their hole, but at least they are responsible to themselves, and are not beholden to the imf or fed res. That is an important position to have, which is unfortunately NOT the case with ukraine, who is now enslaved and OWNED by the imf and eu. The sacrifice will be high, and the smell of blood will carry far for not casting their lot with russia, who was only out for a proper accounting with a gas bill. The fools- do they not recognize they are trading a mere segment of economic dependancy on another country for absolute tyranny and bloodshed? Simply put, they are being duped and subjected to evil influences who care NOTHING for their sovereignty as russia did.

Sat, 05/03/2014 - 03:37 | 4723167 TheSecondLaw
TheSecondLaw's picture

How does the saying go? Bancruptcy happens slowly at first, and then very fast.

Sat, 05/03/2014 - 05:46 | 4723179 besnook
besnook's picture

japan is the logical end of an industrial civilization. it is the future of the world. it it is already in play in europe and russia and will be the savior of countries like china, india and indonesia and southeast asia. the usa uses mexicans and other immigrants to thwart the inevitable and europe has africa but the end is clear.

people are no longer the capital they were in an agrarian society. in an industrial/techno world productivity makes people much less valuable, indeed, a liability with an unknown return. where a child on a farm is productive at pre kindergarten, the industrial kid must be supported at great cost for at least 18 years by law before entering productive life officially. children are simply not a good investment and increasingly diminishing as an emotional asset.

japan has been the most adaptable country of the last century and a half. first there was the meiji restoration leading to the modern japanese empire within 2 generations which led into the "democracy" of post ww2.  these facts sort of disable the entire argument of the futility of the abenomics.

two other points are missed also. the office of griping at the pension apparatus is a neccesary ode to japanese culture. the difference in japanese .gov compared to other countries is .gov service is an honorable position with a university dedicated to future .gov managers and politicians. family political dynasties run the show.

the other point has to do with the utterance attributed to abe ridiculed by the author. all abe said was that the only way anyone will go along with structural change is if the first 2 arrows work. in other words he has taken the daring political position  of all or nothing. kinda significant even in the lie based american political system.

as concerning demographics, there are things that can be done without immigration. the fact is immigration has only been a stopgap measure and not a solution(more trouble than it is worth?) so goes that argument for japan.

i am still fleshing it out but a successful japan model has everything to do with increasing per capita productivity and not aggregate productivity. human mental and physical skilled robots. the ultimate product. imagine a 5 trillion dollar present value economy run by 60 million people based upon the building of humanoids that replace people functions perhaps right down to credit slavery and consumerism, the ultimate monetary system.


ok, ok. look at the bots japan has pioneered. all of them are meant to replace menial but essential human functions. the people the paper proposes fill those slots are gaijin. everyone knows that once a gaijin, always a gaijin with the possible exception of marriage but not really, which you may not really know unless you are japanese, asking your spouse may not answer the question. he/she may even call you a gaijin in that oh so japanesy passive aggressive way so no goddamed furriners.

these bots, however, are the most incredible product since the car on the mechanical engineering usefulness rating scale. the economic potential is incredible and japan is way ahead of everyone....out of necessity. they have the potential to be the game changer, the disruptor, the new industrial revolution........the end of man.

Sat, 05/03/2014 - 05:53 | 4723219 jmcadg
jmcadg's picture

Grant Williams is certainly right here. However Draghi has had a gun with a bullet he cannot fire for five years now, so Abe's smoke and mirrors may still have legs yet.

But beneath this whole charade I think they are pumping far far more worthless fiat into the system than they say, especially the Fed. I don't buy this taper crap. It's just words on the other side of Draghi.

Draghi says he can, but he can't
Yellen says she isn't, but she is.
Abe says believe me ... But we don't!

Sat, 05/03/2014 - 06:44 | 4723244 rgetty
rgetty's picture

Dear Idiots who think immigration is the answer to everything.




First off good for the Japanese for looking after their own people. I cant say the same for the US. We take in more immigrants then any other country and look at the Shit hole it has created. I lived in Japan for 4 years and who works in the 7-11, supermarkets, fastfood places, picks up garbage, builds houses?? 99% Japanese sure there are some that are exploited in theri internship program. Its great get some people work them for 2 years and send them back for new ones. Salaries are a living wages since housing is cheap and so or cars, most supermarket food is reasonable and if you get there about 7m they discount all the sushi and you eat like a king for a few dollars.

Japan is also an island of 127 million its about the size of California. I say they can stand to lose a few people.Dont bring in people that dont care for your country just for cheap labor , its ruined the US and is in the process of ruining Canada, Australia, New Zealand, the UK, Sweden and on and on.


Good for you Japan tell the UN fuckers to fuck off!

Sat, 05/03/2014 - 07:16 | 4723271 TeraByte
TeraByte's picture

It is of complete idiocy that maturing industrial societies refuse to adapt new ways of running economies within limits of their available resources and cling to the archaic population pyramid scheme. A decline is not a must, if only realities were acknowledged. Desperate immigration policies are similar to Fed´s printing press and kicking the can just a bit further.

Sat, 05/03/2014 - 07:38 | 4723282 papaswamp
papaswamp's picture

Japan is how one knows the central banksters rig everything. Compare Japan and Russia. Debt to GDP, natural resources, etc.. Who gets downgraded? Who sees their markets drop dramatically and the need to prop up their currency? Not Japan, yet they have +300% debt to GDP (and a dying population that will never be able to produce enough to make up for it).... zero natural resource reserves (unless they go to war with China...that would last about 10 minutes), massive ongoing nuclear disaster, the list goes on. S&P should downgrade Japan to junk, and the yen should collapse...but it hasn't. Why? Rigged...the whole game is rigged.

Sat, 05/03/2014 - 11:13 | 4723533 yogibear
yogibear's picture

Russia refused to play the IMF bankster game so their punishing and discrediting Russia,

The only thing stopping the IMF banksters taking of Russia are people like Putin and hundreds of nukes in silos and in submarines.


Sat, 05/03/2014 - 08:46 | 4723335 Cloud9.5
Cloud9.5's picture

The sins of the parents shall be visited upon the third and fourth generations.  Japan’s chickens have come home to roost.  Ours are flocking in as we speak.  At least the Japanese have the honorable tradition of seppuku when things spiral out of control.  We on the other hand have no mechanism for a graceful exit.  Our multiculturalism will guarantee that we will tear each other apart.  God help us as the sun sets on the age of oil and the western industrial society it produced.

Sat, 05/03/2014 - 09:19 | 4723372 machineh
machineh's picture

'We on the other hand have no mechanism for a graceful exit.'

It does exist, but only for first-movers: SECESSION.

Set yourself free, and let the D.C. Leviathon choke on its own fiat-currency vomit.

Sat, 05/03/2014 - 11:02 | 4723411 Chuck Knoblauch
Chuck Knoblauch's picture

Why isn't there any desire to increase fuel efficiency?

Why hasn't the internal cumbustion engine changed since its invention?

Because oil companies make $1 billion+ each quarter selling oil and gasoline.

What is their incentive to change or modify their business?

Crying scarcity only provides cover for price and supply manipulation.

It cannot be done?

It has been done and the tech is being shelved until scarcity is a reality?

Questions never asked, and never answered when asked.

So, when a fool like yourself starts to whine about scarcity, I get angry.

The only facts we have are the ones given by the oil companies.

The humanitarians of society? HAHAHAHA!


Sat, 05/03/2014 - 09:59 | 4723400 Chuck Knoblauch
Chuck Knoblauch's picture

McDonald's closed 74 of its chain restaurants in Japan in 2014.

When the rats leave you know the ship is going down.

McDonald's is more a real estate company than it is a burger restaurant.

I don't see Burger King moving in to pick up new customers, like they did in Crimea.

Sat, 05/03/2014 - 09:48 | 4723408 geoffb
geoffb's picture



There, fixed it for you. /snark

Sat, 05/03/2014 - 10:27 | 4723413 Youri Carma
Youri Carma's picture

Japs are the living dead in the denial fase. Japs like too fuck up themselves, that's why they are committing sepuke en masse now by still clinging on to the U.S. which essentially is a sinking ship.

Seeking disputes with China when you're fully aware of the fact that China is your most important growing export market, is a bit suicidal just like building nuclear reactors at the coast on tectonic fault lines is. Actually that's 2X suicidal.

"Immigration reform has been widely recognized as the only answer to Japan’s crippling demographic problem for well over three decades. Nothing has been done about it."

That's going to be a huge problem for the Japs who are not used to foreigners at all, who have been keeping themselves isolated from foreigners on that little island for far too long, maybe.

And who would want to live in a nuclear wasteland called ‘Japan’ nowadays? And besides they’re absolutely crazy

Sat, 05/03/2014 - 10:02 | 4723414 Chuck Knoblauch
Chuck Knoblauch's picture

Almost 30 years of recession in Japan.

An entire generation screwed by government debt spending.

The US is following Japan into the Keynesian toilet.

Sat, 05/03/2014 - 10:42 | 4723440 Atomizer
Atomizer's picture

Did you ever hear about the oranges Bank of Japan?


Grow some balls, pearl harbor is over. Go after the madmen who are responsible. Back to the oranges.

Bobo's Oranges


America has no issues with Japan. You know how to handle the situation.


Edit: Thats the beauty in hirings women into power, they can't keep secrets.

Sat, 05/03/2014 - 11:08 | 4723525 whidbey-2
whidbey-2's picture

Culture, Culture, and Culture.  It was a closed state and still is, so in a global economy, Japan fails eventually.

Sat, 05/03/2014 - 11:14 | 4723535 yogibear
yogibear's picture

The US follows.

Sat, 05/03/2014 - 12:06 | 4723672 kchrisc
kchrisc's picture

Japan will end up just a protectorate of the Chinese.

Stick a fork in 'em.

Sat, 05/03/2014 - 15:13 | 4724223 honestann
honestann's picture

The world of "normal folks" is truly fracked, because that is precisely what the predators-that-be want... thoroughly incapacitated prey.

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