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Japanese Industrial Production Collapses At Fastest Rate Since 2011 Tsunami
Find the silver lining in this utter disaster... and remember, it's not moar of the same QQE as the BoJ is starting to hit its inflation mandate, misery indices are soaring, and approval ratings tumbling. Japanese Industrial Production in June fell 3.3% (almost triple the expected 1.2% drop) and the biggest plunge since March 2011 (the tsunami). This is the 10th miss in the last 12 months.
Simply put, while the progressives would dearly love it not to be true, Abenomics is an epic fail leaving Japan readying itself for yet another lost decade (if it makes it that far without Abe going full militarist).
Things are so bad, even Japanese officials have to admit it...
- *JAPAN TRADE MINISTRY CUTS OUTPUT VIEW, FIRST CUT SINCE SEPT '12
And Goldman officialy gives up:
The figures prompted the government to revise down its assessment of industrial production from “appears to be flat” to “has weakened.”
The post-tax-hike correction has exceeded the expectations of the government and the BOJ by a considerable margin. In view of our outlook for a slump in real wages and a resultant delayed recovery in domestic demand, we had been looking to external demand to drive economic growth in FY2014.
However, prospects of recovery appear to be diminishing as a result of protracted weakness in China and other Asian economies and a decline in corporate Japan’s structural export capacity.
Recession is coming to Japan as Q3 2014's unbelievable hockey-stick for GDP seems totally unattainable based on recent data...
Charts: Bloomberg
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Just shows how succesful Krugman's policies are. He argues that the US would be fine if The Fed would just print Moar. Which is exactly what Japan has done, but it doesn't seem to be working out so well??...
...doesn't seem to be working out so well??
Apparently you haven't been watching the Nikkei.
So when did the Japs start Cloward-Piven.
Oh wait, they've yet to open the borders....
And will only do so when hell freezes over. Hence the need for greater printing?
The JGB 10 year is at 0.52. Today it is at the lowest point of all time. Things must be real good there. I mean people are picking up bonds like they are free. The world is so fucking perverse, I wish I was insane, because sometimes I think I am.
http://www.bloomberg.com/quote/GJGB10:IND
I don't know why anyone would think the Nikkei is doing so well. It was at ¥16,178 at the start of 2014. Now it's at ¥15,646.
their problem is they clearly havent printed enough.
Right, so let's say they print more, another 10 trillion yen, and it's still not enough, what do they do then?
This is going to fun, let's see who bails out of this thread first.
They have run out of paper.
Long Imodium.
The last few days has shown horrible data out of Japan and the Nikkei has done nothing but gone higher.
Aren't you glad the world's financial system has evovled to the point it no longer needs an underlying economy to support it?
I'm fairly sure our debts will still be accumulating and money still being printed to pay them with long after the human race is a distant memory.
hilarious
Paul "Yamamoto" !Krugman now.
There's no turning back now. In the words of George Costanza: "You want to get nuts, OK, lets get nuts".
It feels like the final blow off top - here it comes baby.
Disclaimer: Bu final I mean "another". By top I mean "incremental step to next all toime high.
Abenomics is a full success and I'm not being humorous at all
They are simply idling machinery and trying to run a deficit like USA, paying for commodities and energy with electronic yen.
Abe is a smart man.
The reaction has become self-sustaining. Accumulate debt, print money and give it to people so they can buy your debt.
And manipulate Gold to prevent it from being the Canary?
I think it's obvious they've got the gold angle WELL cornered.
Agree. Why produce if they just print money and import real stuff?
Germany is next doing the same thing.
QE killed world trade.
What's go wrong?...
You can't print out with papper...
What go wrong? Nothing go wrong. Work perfectly.
Until some say "Hey, something wrong with paper. It not work to buy stuff and things. Want other instead."
Then go very wrong. Go very wrong very quickly. Then problem. Big problem.
How long can it go on ND?
Oh the humanity !!! I wonder if this is what we will be seeing tomorrow. Nothing to see here...move along.
Well...the Japan market has gone down since 1989...from 38,900...to 15,400 today. I wonder if this is what the USA market will look like, if we live for 30 years?
Only without the hyperinflation.
Global Correction coming perhaps:
What happens when investors pullback form the housing market? Cash sales volume down 21 percent in California year-over-year. Sales volume remains incredibly low as inventory builds up.~Dr Housing Bubble
Oh that can't be true. I was driving around today and all these residential for sale signs are up and tons and tons of commercial for rent and fro lease signs. What with everybody selling, it must be a sure sign of an ebullient market!
I think you mean ebolient market
lol
Be careful stating facts that run contrary to what central planners want you to believe. A drone might be headed your way...
Fuck reality.
Which one?
The make-believe one
I like deflation coconuts and grapes.
I like deflation coconuts and grapes.
Short Japan first. They've got VICTIM stamped on their foreheads. Too bad. They're lovely people for the most part, like Senegal or Portugal or Baltimore.
They are nice but I think it is because they are so brow beaten into submission by authority.
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
I don't know why anyone would think the Nikkei is doing so well. It was at ¥16,178 at the start of 2014. Now it's at ¥15,646.
I think Abe could fix this entire mess if Japan would just calculate radiation leakage from Fukushima as an "energy export."
Fine then, just be sure to deduct the costs of "production", future clean up, insurance expenses, and environmental damage.
Concreting the bottoms of rivers is good for the economy.
It stands to reason.
All Japan needs now is an overly-glorified military to throw money into and it'll be fine.