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Japanese Real Wages Tumble Most Since Lehman

Tyler Durden's picture




 

Just when you thought things could not get any worse for Abe and his experimentation in monetary policy alchemy... it does. Between surging inflation and stagnant wage growth, real wages for the Japanese fell by their most since the collapse of Lehman. Even the break of a 23-month streak of base wage drops was dismissed by the government as "expected to be revised lower." As Goldman warns, downside economic risks remain high, the J-curve is 'delayed', and with tumbling cabinet approval ratings and soaring personal disapproval ratings, Abe has a major problem on his hands...

 

Chart: Tom Orlik, Bloomberg ( @TomOrlik )

And as we noted previously, there is always Plan B...

 

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Wed, 07/02/2014 - 21:44 | 4919987 Shizzmoney
Shizzmoney's picture

Wait, its like all of these countries that QE4EVA (UK, US, JP) are having the same issue: wages are falling

Don't you see, neoliberalism is working you guys!

Wed, 07/02/2014 - 21:52 | 4920011 nmewn
nmewn's picture

Yes, the soft bigotry of lowering everyones expectations except the gentry class.

 

Wed, 07/02/2014 - 22:43 | 4920142 mjcOH1
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"Between surging inflation and stagnant wage growth, real wages for the Japanese fell by their most since the collapse of Lehman."

Was that not the plan? Improve the balance of trade by impoverishing domestic consumers, while making exports more competitive by reducing the labor cost of export goods in real terms. Reduce the govt debt load by devaluing the currency. Or did it sound better when the politician said it?

Wed, 07/02/2014 - 23:35 | 4920276 NoDebt
NoDebt's picture

Yes.  That's the big game.  Trade standard of living to delay/extend past debts and survive another day.

Thu, 07/24/2014 - 20:50 | 5001690 algol_dog
algol_dog's picture

Nikkei up 100 points - Says it all ...

Wed, 07/02/2014 - 21:49 | 4920003 BobTheSlob
BobTheSlob's picture

Hey Japan, just start another war...you might as well light the fuse, as every other country on the planet has been busy laying out the dynamite and rigging the explosives for WW3 anyway. C'mon, you have nothing to lose!

Wed, 07/02/2014 - 21:53 | 4920013 buzzsaw99
buzzsaw99's picture

this is the maggot's dream for the usa also

Wed, 07/02/2014 - 21:56 | 4920023 mygameon
mygameon's picture

Escape From Japan in 2016. The name's Pliskin, Snake Pliskin

Wed, 07/02/2014 - 22:02 | 4920039 Caviar Emptor
Caviar Emptor's picture

Been sayin... Japan is the weakest link. Home of biflation. Way ahead of the rest of us. And biflation will grind civilization down.

Wed, 07/02/2014 - 22:15 | 4920070 shinobi-7
shinobi-7's picture

Japan is most certainly in the process of entering a recession. Restaurants and stores are eerily empty and have been for the last 2 months. I can't wait to see the results for the 2nd Q of 2014. It will be historic. The big question is whether it will go on all summer in which case Abe will have a mighty recession to deal with comes fall.

Wed, 07/02/2014 - 22:38 | 4920125 Make_Mine_A_Double
Make_Mine_A_Double's picture

Morbidly interesting to watch......

Our future.

Wed, 07/02/2014 - 22:45 | 4920146 infinity8
infinity8's picture

The last few months has been like the tilt-o-whirl for me and most people I know. Lots of people really hurting, lots of people catching some breaks. I just started a j.o.b. that I knew in advance I would hate but I gotta do it for the $. 2-1/2 mos. tops w/time+1/2 for almost guaranteed o.t. Wanna shoot myself in the face every morning and night (too busy and with enough brain-engagement at noon to think about shooting myself in the face then).

About 2 wks ago I remembered being in 6th grade on the tilt-o-whirl at the carnival and some kid barfing while we were at the peak of the ride and it spreading out w/centrifugal force and being only 2 kids away from getting on my shirt. like a real-life horror movie. Gosh, why I be thinkin' of that?

Wed, 07/02/2014 - 22:55 | 4920165 AdvancingTime
AdvancingTime's picture

When you introduce demographics into the picture we see that Japan is stuck with an aging and shrinking population that is evermore expensive for the government to provide for. Adding to its woes the Fukushima nuclear disaster has shuttered its nuclear power plants and forced the country to import more expensive energy alternatives.

Neither monetary nor fiscal policy will adequately solve Japan's problems. Continuing to run fiscal deficits only means that government debt is pushed onward and upwards leading to a variety of possible scenarios as to the what the end game will be. Simply put, the fundamentals for Japan are lousy. More on the downward path that Japan is on in the article below.

http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html

Wed, 07/02/2014 - 23:41 | 4920289 Government need...
Government needs you to pay taxes's picture

How about shipping them 30 million semi-literate, disease-ridden Central Americans?  Maybe we could sweeten the pot with 10 million Negros from our inner cities, too.  Boy, now that would solve their problem, BAM!

Wed, 07/02/2014 - 23:18 | 4920224 stpioc
stpioc's picture

Soo, you conveniently "forgot" to mention that the inflation data are inflated because of a one-off VAT increase, one that was impossible to miss because everybody feared it would stump growth like it did in 1997..

It's like when you guys were screaming daily that the world would implode post financial crisis because the Baltic Dry Index slumped, but forgot to mention all those new ships, ordered before the crisis, actually came operational.

 

Wed, 07/02/2014 - 23:38 | 4920287 Government need...
Government needs you to pay taxes's picture

Dont forget the daily diet of radioactivity spewing from Fukushima into the water supply around Tokyo.  Normally, I'd say give it 20 years, and the economic mess will sort itself out.  With the nuke disaster, in 20 years, there may be nobody left.

Thu, 07/03/2014 - 01:02 | 4920434 Lynchie
Lynchie's picture

Prices ... energy and food...are ahead of wages. That's it, that's all. Higher labor demand (e.g., job openings to applicants) suggests that wage gains will come through.

Thu, 07/03/2014 - 02:07 | 4920524 TheRideNeverEnds
TheRideNeverEnds's picture

suppel burrish tyrel-san!

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