This page has been archived and commenting is disabled.
Abe's Worst Nightmare: Household Spending Collapses As Inflation Spikes
UPDATE: USDJPY has tumbled to 5 week lows and NKY has retraced all post-Fed gains
Japan is in trouble. Normally the news that a piece of macro data had utterly and completely collapsed would be greeted by thge BFTD mentality as bad news reinforces the printing-press of central planners' put guarenteeing future wealth for all... but not this time. Household spending collapsed 8.0% in May (echoing the plunge following the last tax hike in 1997) - more than double expectations and almost as bad as the month of the tsunami. Great news? That's the problem... the great limiter of central bank largesse is looming as Japanese CPI spiked to 3.7% - its highest in 24 years! (and Core CPI at 3.4% - its highest since 1982) This implicitly hobbles the BoJ from further exuberance and already JPY strength (and NKY weakness) are showing.
Household spending collapses...
And inflation spikes... (with core CPI at 3.4% - its highest since 1982)
Now what Abe? More depends?
- 21570 reads
- Printer-friendly version
- Send to friend
- advertisements -






Mr. Abe? May I suggest the pufferfish liver prepared by our new cook? It is the first time he will have done this.
this is EXACTLY where good 'ole USSA is headed ! (real soon).
People are getting scared to spend on both sides of thePacfic. It is going to be a shit show.
Let it be known: Abenomics has FAILED.
And to think they said "it couldn't be done"... no wait... or was it "it shouldn't be done"?
Oh crap... at this inflection point it simply doesn't matter any more.
How do you say "totally fucked" in Japanese?
It's all Japanese to me
Actually, I think this is exactly what ABEnomics was designed to do - create higher inflation. As folks get used to a high inflation rate, they will start spending on goods to get them before the price increases. This is all in the plan and good.
The problem is where the money came from to get this process started.
Prease ... do not worry.
Looks to me like KYLE BASS had the Japan collapse predition - right - on - the - money!
People who are dead and dying of radiation don't spend money. They certainly don't go to work, and are not too concerned with taxes.
Everyone left knows they're next.
Hard to overcome the non-spending habits of the soon-to-be-extinct.
Like Jesus' Second Coming, the financial apolocypse is much desired, but never materializes.
Ya'll sound like Harold Camping. Or the Y2K'ers.
Desire for apocalypse is an emotional escape.
Desire for apocalypse is an emotional escape.
Inciting negativity on a message board is a cry for help.
I agree, all the negativity ZeroHedge and doom porn commenters incite here is a cry for help.
"A fake fortune teller can be tolerated. But an authentic soothsayer should be shot on sight. Cassandra did not get half the kicking around she deserved." ~Robert Heinlein
TRANSITORY
I disagree to your first comment. For the most part, ZH is a community of smart asses that are trying to understand the nature of the world's predicament. This is so for financial issues as well as non-financial issues.
Of coures there are always going to be shit disturbers...but...hey...one can not have a community without an outhouse.
This unfortunately --- is the truth of the matter:
High energy prices = less consumption because everything including the fuel in your tank costs more = layoffs = less tax revenue = government cutbacks, layoffs and debt increases = less consumption = more layoffs = less taxes ===== economic death spiral.
Compounding the problem is the fact that a weak labour market means real wages drop - as they are across the world right now - that means everything is more expensive and your buying power is dropping at the same time.
Governments recognize this and are trying to offset with debt, easy lending (they are purposely inflating bubbles), lower interest rates and money printing.
This all started in 2002 when oil went from $12 a barrel to nearly $40 (and of course has never looked back)
Of course they will fail - because the disease is expensive oil. And there is no substitute
The economic death spiral will accelerate when the QE and ZIRP no longer have any effect and the confidence game collapses.
This moment will be known as the end of the industrial revolution by the few who survive.
This is not a Hollywood movie where the hero saves the day. This is the reality we are facing.
HIGH PRICED OIL DESTROYS GROWTH
According to the OECD Economics Department and the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would result in the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices. http://www.iea.org/textbase/npsum/high_oil04sum.pdf
What a pain in the ass
Top Gear, it looks like neither you nor Heinlein have actually read Agamemnon. Cassandra's fate was to accurately see the future, but to never be believed. That is why she was not shot (with an arrow, presumably) on sight.
BTW, you are an ignorant bore.
I don't think you quite understand the point.
Why is such a thought sufficiently credible to be taken as seriously as it clearly is, even on CNBC, 6 years after overwhelming monetary and fiscal stimulus globally?
Why? Here's why:
"the great limiter of central bank largesse is looming as Japanese CPI spiked to 3.7% - its highest in 24 years! (and Core CPI at 3.4% - its highest since 1982)"
You'd think maybe a country that imports every drop of liquid in their 5 million barrel per day burn paid $5 more in May than April.
Behold, the power of oil.
"Desire for apocalypse is an emotional escape."
Wow retard, who said shit about the apocalypse? This is an article about the Japanese current economic situation.
Pray to Tyler about it, halfwit.
20 Stunning Facts On The US Retail Apocalypse | Zero Hedge
zerohedge.com/news/2014-03-10/20-mind-blowing-facts-us-retail-apocalypse
Bill Buckler Presents The Four Horsemen Of The (Financial) Apocalypse
zerohedge.com/news/bill-buckler-presents-four-horsemen-financial-apocalypse
Again, what the fuck does that have to do with this article? You seem to be the only one obsessing over the Apocalypse, no one else has said shit about it...
the financial apolocypse is much desired, but never materializes
it's already here, my little chim chim. See Russia and China? just tossed the ol' buck right out the window in their gas trade. 10 years ago the only way they would have trusted each other would be to demand the buck in trade. Sayanora, skippy!
It's already here? OMG! So when do I have to stop partying?
You will be stopped automatically when your fiat dollars won't buy what you need. Coming soon! Until then, party on, dog.
Is that going to happen right after the Rapture?
"For then there will be a great tribulation, such as has not occurred since the beginning of the world until now, nor ever will."
Yeah, yeah....zzzz.
The USD has been fiat since 1971. Can you name a fiat currency that has withstood the test of time? No, you can't. All fiat goes to its inherent value, which is 0. You are going to be in for a rude awakening.
Sounds more like he's waitng for the "Second Coming"
In my "travel wallet", with my passport, are paper currencies I keep (so if I arrive at midnight, I can catch a taxi without worrying about a currency trader being open at midnight at the airport). Most of the South American currencies are worthless after 5 years.
Yen have been good. NT hold value. HKD have held, although I've seen "new" paper there in 30 years. So Far East has been good, S. Ameriaca, not so good. Rest of the world, I don't go so I do't know.
Still, if you study paper money, you'll find it all goes to ZERO in the long run, not a single one is worth a silver WA quarter or Mercury dime.
The guys that wrote the Constitution, requiring currency to be gold and silver, what the hell were they thinking?
It worked for a while, but not very long. By Lincolns time, it was all over.
Less than 70 years - 1 generation.
You must have gotten lost on your way to bible study dude, all your comments thus far have mentioned praying, the apocalypse, and bible verses... There is nothing wrong with that, but you should seek out a forum that deals with theology or something
Here is the headline to help you understand what the article is all about:
"Abe's Worst Nightmare: Household Spending Collapses As Inflation Spikes"
Please do your best to try and stay on topic
I've been looking at your posts and had to comment. No it's not the end of the world, but this is exactly what kyle bass said would happen. If you would have said in1927 that the economic boom was unsustainable and the gov would confiscate all of the citizens gold you would have been called crazy. In 61 if you would have said in 10 years the dollar would not be backed by gold, again crazy. A crash in stocks in '97, crazy. If you said in 03 a housing crash would nearly break the system, nuts. All these things happened, and the people that warned about them were kooks at the time, only to end up being correct. I'm paying more attention to the people with a good track record, and doing my own research and its not looking good. End of the world, no of course not, but I have a pretty good idea things will get ugly. So if you want to come on here and bash people, fine, but your really making yourself look stupid by not saying anything with substance about the artical. Here let me help 250% govt debt to GDP + rising inflation + slowing economy = really really bad news no matter how you cut it.
Top Gear...You have been here on ZH for 11 days. Are you just here to see how many people
you can rile or are you Million Dollar Bonus's cousin?
STOP??????!!!!!! the band on the Titanic played with water over their ankles for god's sakes! This is merika!!! party till u puke, baby!! (or nuke, baby)
"Ya'll sound like Harold Camping. Or the Y2K'ers."
Or the US Govt, reporting -2.9% Q1 GDP after trillions of stimulus. What crazy people they are.
"this is EXACTLY where good 'ole USSA is headed ! (real soon). "
Not to worry....the EBT can be adjusted upward with the click of a mouse as inflation spikes.
On the other hand....if you're one of the quickly disappearing tax donkeys paying for Lafonda's Escalade, you'd best be signing up for the 'crazy money' now. Because the last guy left working is going to have a hell of a time keeping 300million mooches in the level of government handouts to which they've become accustomed.
It's most definitely coming to america.
Ecronomy rike stink flish
Abe has emptied his quiver
Good fortune he tried to deliver
His arrows have missed
His nation is pissed
And people are starting to shiver
Japan has tried Abenomics,
A stunt that defied economics,
despite trillions of Yen,
the effort caved in,
a result only fit for the comics.
ShrNfr you sir are a professional!
Didn't Japan finally make child porn illegal?
I suspect that may have had something to do with a drop in spending...
The ban excludes comics/manga, so the hentai industry can still contribute to the economy.
Also the ban seems to only cover overt sex, meaning underaged 12yr old models shooting leg-splitting bikini photo albums are still legal and selling like hotcakes.
Sounds like here
At least Japan's Abe did not declare war on his own people like our Abe in the U.S. did.
You are wrong. In fact Abe (along with the corporate, bureaucratic, and political elite) has declared war on all Japanese.
Coming soon to the U.S.A.
in 2016
Said Harold Camping.
Coming again, Coming again,
May be morning, may be noon,
May be evening and may be soon!
Coming again, Coming again;
O what a wonderful day it will be -
Collapse is coming again!
hymnary.org/tune/coming_again_peterson
Sing along now, boys and girls.
You really need a new hobby.
this is like me fasting for month ... then find out i gained 100 lbs .... bawhaahahaahha fuck japan, all these fools better start learning chinese ..
And what's really bad is they JUST banned chiild pornography. But they said cartoon child pornography is OK so they have something to live for there.
the moar they fudge cpi the madder it gets. eventually it picks up a bus and throws it back down as it makes its way through the center of town. http://www.youtube.com/watch?v=GnXaDKvterM
Oh no, they say he's got to go go go Godzilla
Oh no, there goes Tokyo go go GodzillaLOL
Dancing Faires ....
https://search.yahoo.com/search;_ylt=A0SO8xlAvaxTNkoALghXNyoA?ei=UTF-8&f...
Where the Fuck is Raymond Burr when We Need Him?
All of these great song references ...
Harvester of Eyes
https://www.youtube.com/watch?v=bs-yzJeZoRg
"I think I am (we are) turning Japanese, turning Japanese, I really think so!"
Boy oh boy. That island is fucked. If I was Hawaii, I would be on high alert for kamikazes.
Oh look, gold is bid.
I wanna pony.
I guess that if you could completely switch off any logic in your brain, all this would make sense.
I can't.
Pssst. This bud of mine, Paul Krugman can explain it to ya'..
All's good that ends on somebody else's tab
actually abe's worst nightmare is that if kuroda hiked rates a mere half a percent it would crash world markets overnight and he would take the blame and have to run himself through with a rusty dagger. there is nothing that can be done but wait for the inevitable.
Just restart the nukes. Unless and until Japan does that, it will spiral out of control.
That's a thought techdood, but you'll have to think again.
They burn 5 million barrels a day. LESS now than before the nukes were shut down (because GDP is weaker).
It's the 5 million/day import at Brent prices that kill them. Nukes won't push trucks around.
WTF? You mean tax increases and massive money printing are NOT good for the economy? Who would have guessed?
Sounds like Japanese consumers are longing to continue that multi-decade deflation thing we're always heairng about.
"yay! we finally beat the deflation monster!" said no one ever.
"Abe's Worst Nightmare: Household Spending Collapses As Inflation Spikes"
Also Yellen's worst nightmare. Note Bed Bath & Beyond's stock price today.
"Japanese CPI spiked to 3.7% - its highest in 24 years!"
Yellen will tell them it is just noise.
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