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Spot Japan's "Cash-For-Machine-Clunkers" Pre-Tax Boost
Given the total and utter lack of response from USDJPY, it should be clear that the exuberance that will be expounded tomorrow regarding Japan's Machine Orders 19.1% MoM jump (more than tripling expectations) should be taken with the proverbial Keynesian drag-demand-forward pinch of salt. This is the biggest monthly jump in machine orders in 18 years as non-ferrous metals manufacturing jumped an impressive 270%.
Of course, as we have seen throughout Japan's checkered lost decades, this is entirely unsustainable as, while extrapolators will be quick to point out how this proves Abenomics is working (while bulls will demand moar QQE even though this impressive number should shun the BoJ for one more month at least) - as they say in porn business, what goes up, must come down and we suspect April will be an uncomfortable month for Japanese machine orders.
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Non-ferrous metals manufacturing?
Is that Klingon for bit coin?
Or maybe Abe discovered tungsten.
Land of the sinking sun can avoid reality only so long.
I guess. Non Ferrous metals manufacturing; 98% Aluminum. They're making a huge pile of Asahi Beer Cans ? God only knows. Not impressed.
"What goes up must come down". True but if it stays up for longer more than 4 hours call your doctor and seek immediate medical attention.
These numbers are raally skewed. 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 GDP and is the highest in the industrialized world.
The moment the Japaneses stock market fails to rise enough to offset inflation this will turn into a tsunami of money fleeing Japan and constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html
I'm not an economist, but I suspect they can continue this until the PetroDollar no longer is the reserve currency. It's gone on in Japan now for 25 years and the gov't has gotten away with it.
It's gone on in Japan now for 25 years and the gov't has gotten away with it.
Japan started downward approx. 1989 right about the time Greenspan started experimenting with credit expansions in the US. As US over-consumerism and debts rose, japanese domestic consumption stayed mired in economic malaise only Japan's export machine carried the nation. Japan's real troubles arrived when exports markets shrank. I don't think Japan depends on petrodollar so much as it depends on foreign markets to take up the slack from losses at home. And those foreign market are consistantly shrinking.
I agree with a lot of things but isn't the Japanese public debt owned for the most part by Japanese. In the worst case they just can impose a haircut. It would be like cutting pension for many seniors as their pension funds get hammered.
I've often wondered...if the power monkeys(politicians) and money monkeys (corp elite/banks) in any country saw (discussed at the "top")a collapse coming, would we (not in the loop) see a sudden spike in durable goods, machine goods orders just prior to say an money reevaluation(inflationary)? What sign would warn the "little guy"?
How much longer can the average citizen endure this wholesale destruction of opportunity?
"How much longer can the average citizen endure this wholesale destruction of opportunity?"
Until they can't even buy any groceries with them.
Perhaps Fukushima Abe will introduce a JapanCard for supplemental nutrition. Or throw in a year's supply of nutritional Fukushima seafood.
that chart clearly shows Japan needs to raise taxes every month.
LOL. Well, they'll probably get around to that too.
I have full faith and trust in Abe's economic policies.
But I wouldn't put any money in them.
(War machine by AC/DC in the back ground)
So a 19% increase in machine orders and 270% non-ferrous metal manufacturing.
Could this be the initial stage of the build up to war?
Crank up the music volume and release the dogs of war.