This page has been archived and commenting is disabled.
Japanese GDP "Guesses" Are Collapsing; Here's The 3rd Arrow That Will 'Save' It
Japan’s GDP may have declined in April and May, implying an overall collapse for Q2 not seen since 2009. Bloomberg's Nowcast estimate suggests that the hope-strewn pre-tax-hike pile up of a +6.7% annualized GDP growth in Q1 will come crashing back to earth as consensus GDP for Q2 is -4.85% and even bigger based on Bloomberg's models. As Bloomberg's Tom Orlik warns, this could take markets by surprise. The good news is that Abe's 3rd arrow has yet to reach escape velocity (any day now); below we highlight the entire package and how it will save the world...
This is not what Abe wants to see...
Bloomberg's Tom Orlik notes that their Econometric model indicates it could significantly worse...
Consensus forecasts show Japan’s GDP growth contracting at an annualised 4.4 percent pace in the second quarter from the previous three-month period. The steeper drop in the economy projected by Bloomberg Nowcast might take the markets by surprise and increase pressure on the Bank of Japan to kick off a second round of easing... which is problem given the already high level of inflation.
But have no fear, the 3rd Arrow is here...
h/t @TomOrlik
* * *
What is even more problematic for Abe is the continuing collapse in his approval rating (down 5pts to 47%):
The approval rating is the lowest since Prime Minister Shinzo Abe took power in December 2012, public broadcaster NHK reports, citing own poll; and the disapproval rating climbs 6 pct points to 38%.
And this...
- ABE: NOT THINKING OF DISSOLVING PARLIAMENT AT THIS STAGE
So that's it... or war!
»
- 11489 reads
- Printer-friendly version
- Send to friend
- advertisements -
dow 18000 by the end of the week
Let Japan be a lesson to all those who might think brains, technology and the production of high value added, high quality manufactured goods can save a country from the destructive might of central bankers' bullshit.
JPYUSD >100
JPYUSD <100
ABE: NOT THINKING OF DISSOLVING PARLIAMENT AT THIS STAGE
lol...its like yen seppuku meets musical chairs.
Escape Velocity.. i laugh Every time i hear this shit..
Wow, this all looks familiar
War, bitchez.
They have a pretty simple plan to fix all of this -- hear me out on this guys -- it's... printing trillions more yen. Just this one more time, just enough to fix things, honest.
Exactly. From the BOJ to the banks and back to the government. Closed loop that is meaningless to anyone outside the loop.
"Nissan Leafs for under ten grand! Free fuel for life!"
I never have understood how increasing the number of women in the workforce will help economic growth. Almost half of Japan's workforce is working part time or temp work. Where are the jobs for women? This seems more of a gender agenda; "We're looking after you, girls." ;), than a serious economic plan.
As for farming, Japan only produces about 38% of the food it consumes, down from almost 50% a few years ago when the government promised that food security would be a top priority.
Wasn't long ago, either Kan or Noda promised to increase the financialization of the Japanese economy, apparently at the behest of Wall Street and the US Fed who could no longer bear to see those 15 trillion in USD sitting in bank accounts throughout Japan.
Next blow will be the TPP (another Wall Street/K Street assault on the trusting Japanese populace).
The post-war occupation forces banned personal ownership of firearms and swords. Probably a good thing for the current "leaders."
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
Demographics are destiny. China, with its one child policy, will soon follow.
Can you imagine how bad Abe would destroy the economy if he had a giant dick? The economy would be leaking for at least a week afterward.
we had a little DicK Chenny, and that did not seem to help us at all.
I'd rather shit my own pants than be Abe..........Oh, wait???!!!!
Well at least they might hit their tourism target of 30million by 2023, with the yen worth next to nothing Japan will be the cheapest place on earth to go on holiday.
I hear the Fukishim techology trips will be eye-opening. I just want to go there and see the ice walls, the tank farms and swim in th eocean.
Oh no! First the weather dragged the good ship USA down last quarter, now the Japanese economy is going to do it this goshdarned quarter.
Broken Arrow
Japan's Q2 GDP target -4.85%????
Hey yellen, what are your thoughts on this???? LMFAO!!!!!!