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Keynesian Central Banking Is An Economic Scourge: More Evidence From Japan
Submitted by Alhambra Partners' Jeffrey Snider via Contra Corner blog,
The Bank of Japan has already been pressured by events to reduce its economic expectations for 2014. At the end of 2013 there was enough cautious optimism that Japanese officials went ahead with their dubious proposal to try to appear fiscally responsible. The tax increase was expected to create a mild contraction in GDP before the economy then accelerated mildly but broadly with inflation. That optimism actually gained strength after the first quarter was estimated far “better” than anticipated, temporarily restraining calls for even more QQE from the Bank of Japan.
The first quarter was actually a case of the inverse interpretation eluding the orthodox mind and his regressions. If the Japanese were so compelled to front-load so much spending and activity over a relatively minor tax increase that could only be viewed, with common sense and intuition free of the statistical prison, dubiously and ominously. A healthy economy would certainly see some of that process, but not enough to create such massive swings. It was the size of the interference that suggested a course far, far off track.
Results in the second quarter had thus been much worse than expected, but still there remained blissful designs for the third. The latest projections for Q3 are hopeful in their scale, suggesting somewhere between 2% and 3% for GDP.
Part of that optimism has been derived from the “success” in generating “positive” price changes inside Japan. Academic economics is absolutely convinced that Japan’s problems stem from stubborn “deflation” that has entrenched itself into the very psychology of the Japanese people. Under that paradigm, a shock of “inflation” should have worked as Japanese agents (people, investors and businesses) are forced by nominal disturbance to re-orient their expectations. That is the foundation of modern monetarism, a mildly stunted psychology.
Yet again, however, the mainstream interpretation is far too infatuated with mathematics and has far too little experience with realistic complexity. That quarter century of “deflation” was not itself the problem, it was a symptom of structural flaws that gained great currency (pun intended) during the halcyon days of the Bank of Japan’s 1980’s “power” and prestige. Not only has the idea of “money supply” itself undergone a radical change in the past thirty years, creating new pathways and channels for psychological impulses and outlets, instability in any form is still instability.
Creating, indeed cajoling and even forcing, positive price directions on any economic system is a radical tool of redistribution. Creating nominal profits from currency debasement is, however, nothing like creating real profits from expanding wealth. There is at least some recognition of the costs of redistribution inside the orthodox construction, but it is always calculated (only qualitatively funny enough) as being less than the intended positive effects. So the Bank of Japan (and its central bank fellow travelers) admits to creating winners and losers, but does so in unabashed intent because the net “stirring of the pot” supposedly forces systemic forward momentum.
Even where losers abound, their station is believed improved over the long run by a healthy economy – supposedly you have to break a few eggs to gain socialized economic advance. That was a specific view espoused time and time again by Ben Bernanke during his justifications for all the QE’s. He “shared the pain” of fixed income retirees as he actively suppressed nominal and real returns to the maximum, but, as he always rejoined, higher rates of returns would only appear and stay when the economy was on the durable growth path (and he was very much right about that, though I’m sure he is not enjoying the current bond market proving that fact in the opposite case).
In Japan, the trick was wages and exports. Redistribution meant greater costs to households and Japanese exporters and businesses, but that would, again, be offset by the positive forces of wage gains and devalued yen cheapening Japan Inc. We know too well just how wrong the orthodox expectations were in terms of exports and Japan Inc, which has been accelerated into Japan Offshore Inc.
On the wage front, even nominal wages refused to budge – until more recently. In the past few months it appears as if there might stay an actual plus sign in front of scheduled earnings, the main source of income for Japanese households. Last month’s (June) first estimate was positive, as had occurred several times before, but was only revised lower, as expected, to zero. That was a major achievement in itself, breaking a two-year string of declines. Wages in July have also come in slightly positive, though it is unclear yet if it is enough to withstand the quirky downward revisions to come.
But in any event, the trend of nominal wages is in the direction that economists want and expect.
The implications of all this, however, are far less rosy than the sudden plethora of plus signs would seem to suggest (though the latest figures only run through June; given the disaster in spending shown below it might yet be premature to extrapolate about July). Again, redistribution counts more than one facet of consideration, and the state of wages in nominal terms doesn’t always mean what you are told.
Despite that increasing yen flow to households, they are not actually doing any more work. I suppose that conforms to the plan and idea for inflation, as the intentions stray little from the nominal side, but that is the problem. The real world goes far beyond nominal changes, and more often than not in the “wrong” direction due fully to that currency flow reorganization.
The exchange of labor for wages is the predicate position for creating wealth, but the Bank of Japan and all orthodox economics cares little for wealth in the pursuit of generic activity. Had wealth been expanding alongside prices (costs), wages would likely move in tandem and there would at least be some kind of hope for weathering the redistribution storm that has been unleashed over there.
Instead, there is no real reason for wages to rise other than nominal inertia, but that is far too insufficient to equalize where debasement has already had its full force. That is the great problem with all of this, that redistribution in whatever form, be it currency debasement directly, asset inflation or whatever, can only penetrate so far on its own. Unfortunately, the areas and segments of the economy most susceptible to this corruption are usually negative factors. So in the generic sense, orthodox practitioners intend to create a healthy economic trend out of an engineered preponderance of negative factors.
The results are entirely predictable outside of regressions. Household spending collapsed as intuition suggested during that very “hopeful” first quarter, but worse than that it hasn’t stopped.
Adjusting for prices, as best any official inflation measure can, household spending in July was worse than April and almost as bad as May! Even in purely nominal terms, to see spending decline so much without a polar vortex (cheap shot, but deserved) or additional tax changes is a very serious blow not just to future expectations but to credibility. And that is the biggest problem here, in that the Bank of Japan is not an outlier central bank running unique programs directly targeted at only Japan. They are reading the same textbook as all the others and crafting “solutions” based on it, just as the rest are.
If Japan’s results and programs here hold any true difference, it is only that they are further down the same road than the rest of us. As Japanification continues in the US and Europe, we are gaining good observations about what lays ahead until the political will to use that same textbook time and time again is exhausted, or, more likely, removed.
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Fractional reserve banking, Fiat money and Interest are the problems for everyone but the .1%
Everything else is just noise, to use a Yellenism.
Be patient.
You can print wealth and convert lead into gold.
http://i.imgur.com/EiZOiYc.gif
"Debt" money is the problem. Quick, where is Krugman to repeat that the problem with the Fed is that it isn't QE'ing enough. Like Japan. Oops.......
yes this has nothin to do with the keynesian modelisation of economy.
japan economy never been a keynesian economy in the first place (with public services really public & markets regulated)
there is only one model they follow & it's called robbery.
calling it keynesian is just propaganda to make people believe they've failed, the truth being the failure is by design & they achieved what they wanted to achieve (even & especially when they state the opposite).
hairInTheSoup,
This repost should help.
Debunking Austrian-Keynesian dialectic:
Keynesianism and Austrianism are two poles of an elite dialectic, focusing mostly on four dualities:
The broad money supply, 97% of which corresponds to credit created by commercial banks, is in fact modulated according to the market’s demand for credit rather than by government or central bank intervention.
This turns the “money multiplier” mechanism on its head and renders the entire concept of “reserves” irrelevant. Although Austrians may wish to blame “paper money” for this situation, claiming that this would not happen if we used a commodity-based currency, credit created by commercial banks had already replaced notes as the most important form of money in the 19th century, while the United States were still under the gold standard.
Both schools want us to believe that central banks play an important role (good or bad), a claim that is debunked by the available evidence. It is likely that the goal of these apparently competing elite memes is to conceal the role of private banks and the importance of commercial loans behind the false “central banks versus free market” dichotomy.
Although both schools make a sharp distinction between central banks and private banking, the data tends to support the idea that the banking system is one (which as we know is controlled mostly by the same people), with central banks acting simply as a backstop to stabilize the system and justify the legal monopoly on currency.
Viewed in that light, proposed reforms to the banking system, such as the BIS raising “capital reserve requirements”, can be seen as mere posturing: a pathetic effort to maintain the illusion that reserves and the “money multiplier” effect actually matter.
Finally, let us not forget that each school ascribes the cause of economic recessions to a phenomenon which is actually endorsed by its “opponent” (Austrians support “excessive saving” while Keynesians favor government intervention), but both ignore what is likely the main reason for our economic problems: usury.
Anthony Migchels
http://realcurrencies.wordpress.com/2012/11/18/debunking-another-cornerstone-of-the-austrian-keynesian-dialectic-do-central-banks-really-control-the-money-supply/
Just need to pring a little bit moar!
Marc Faber: “Nations Will Print Money, Go Bust, Go To War”
well he's pretty much saying the same thing.
it's all bs because of the fractional reserve paradigm.
nevertheless, and i admit could be wrong because it's a long time ago and memory can fade out or be distorted : in the original keynes modelisation (not the keynesian school this guy is talking about), the central bank is under the state authority whereas CB is independant in the friedman model of fully free markets.
that's a huge difference.
obvioulsy all those models are theories, based on hypothesis
For keynes that the state is not corrupted, for friedman that the information is transparent (allowing for that adam smith invisible hand that'd balance markets in a perfect world).
so imo, this pseudo keynesian school, if they really say sign blank checks to banksters & call themselves keynesian, then they are an enterprise of propaganda to avoid the real issue and move the center of the debate from those psychopath central bankers & their political puppets to what they should do in time of crisis as an independent unquestionable financial authority that tells the state what to do & when.
it is similar to saying for example that Staline was Marxist, which is a huge lie to discard at first hand Marx real research : "the capital" is in fact the best economic book ever written, amazingly clairvoyant : it's all in there what's happening since one century.
hairInTheSoup
You wrote: reserve paradigm... keynes modelisation... keynesian school... independant in the friedman model of fully free markets.
theories, based on hypothesis... information is transparent... invisible hand that'd balance markets in a perfect world
pseudo keynesian.... Staline was Marxist
See the problem?
Now, do this: Go and explain it to your mother. If she still can't understand, it's because you don't know it well, yourself!
one problem is you want to know better even when & especially when you know less.
one other is that people don't care for the true meaning of words
the biggest one is the main problem of our society, the one that makes us so docile sheep : the cult of the ego & yours makes you blind cutting lose any possibility to make a constructive use of your intellect (could be the coke, that ego booster/intellect killer as well - stop before it's too late)
edit to add : MY MOTHER DOESN'T SPEAK ENGLISH
I agreed with the basic points made in that article you linked, Escrava, however, the basic problem is the PRIVATIZED power to make "money" out of nothing as debts, which fraud the government enforces by requiring payment of taxes using that "money," as well as deeming that form of "money" to be legal tender.
What changes over time is WHO in particular actually was making most of the public "money" supply out of nothing. Several prevoius Zero Hedge articles have made similar points. When one looks at the charts of that, it is clear that, after financial crises, the central banks start to preportionately make more of the public "money" supply out of nothing, while previously, a whole host of other private institutions were really making the vast majority of the "money" out of nothing, according to each and every different ways that different institutions were legally allowed to counterfeit the public "money" supply.
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q102.pdf
Money creation in the modern economy
By Michael McLeay, Amar Radia and Ryland Thomas, the Bank of England’s Monetary Analysis Directorate
"In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.
The reality of how money is created today differs from the description found in some economics textbooks:
• Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits.
• In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.
Although commercial banks create money through lending, they cannot do so freely without limit. Banks are limited in how much they can lend if they are to remain profitable in a competitive banking system. Prudential regulation also acts as a constraint on banks’ activities in order to maintain the resilience of the financial system. And the households and companies who receive the money created by new lending may take actions that affect the stock of money — they could quickly ‘destroy’ money by using it to repay their existing debt, for instance."
AS FAR AS POINTING OUT THAT BOTH KEYNESIAN AND AUSTRIAN ECONOMICS SHARE THE SAME BASIC BULLSHIT VIEW OF "ECONOMICS," I have been stating similar things in comments made on all the articles which I list below, which were some previous worthwhile Zero Hedge articles:
http://www.zerohedge.com/news/2012-12-04/keynesian-revolution-has-failed-now-what
The Keynesian Revolution Has Failed: Now What?
http://www.zerohedge.com/news/2012-12-30/guest-post-keynesian-legacy-unravels
The Keynesian Legacy Unravels
http://www.zerohedge.com/news/2013-01-02/guest-post-dangerous-blindspots-clueless-keynesians
The Dangerous Blindspots of Clueless Keynesians
http://www.zerohedge.com/news/2014-03-02/guest-post-why-keynesian-political-economy-theft
Why Keynesian Political Economy Is Theft
http://www.zerohedge.com/news/2014-03-27/dear-keynesians-your-sad-devotion-failed-religion-hasnt-conjured-recovery-heres-why
Dear Keynesians: Your Sad Devotion To A Failed Religion Hasn't Conjured Up A Recovery; Here's Why
http://www.zerohedge.com/news/2014-03-27/paul-contrafactual-krugman-laureate-keynesian-babble
Paul "Contrafactual" Krugman: The Laureate Of Keynesian Babble
http://www.zerohedge.com/news/2014-08-24/krugmans-keynesian-crackpottery-wasteful-spending-better-nothing
Krugman's Keynesian Crackpottery: Wasteful Spending Is Better Than Nothing!
http://www.zerohedge.com/news/99-years-keynesian-monetarist-winning
99 Years Of Keynesian-Monetarist "Winning"
Here is an orthodox BBC documentary about Keynes, which is a typically superficial, mainstream morons' view of the Keynesian recommendations for the "solutions" to economic problems:
http://fullepisode.info/masters-of-money-season-1-episode-1-john-maynard-keynes/
Masters of Money
Season 1 Episode 1
John Maynard Keynes
http://en.wikipedia.org/wiki/John_Maynard_Keynes
One of my favourite John Maynard Keynes quotes:
" ... engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
http://en.wikipedia.org/wiki/John_Kenneth_Galbraith
One of my favourite quotes from Galbraith:
“The process by which banks create money is so simple, that the mind is repelled.”
My experience is that the vast majority of the muppets do not understand that their "money" was made out of nothing, and they have been conditioned to not want to understand. They do not want to understand that their money is backed by nothing but murder. They do not want to understand that they are members of "We the People" that almost all act like political idiots, and therefore, they have allowed the "hidden forces of economic law" to drive everything towards their destruction.
Keynesian economics is one of the rationalizations or theoretical justifications of the fundamentally fraudulent monetary system, which is privatized fiat "money" made out of nothing, as debts, which FRAUD THE GOVERNMENT ENFORCES. Therefore, Keynesian economics is an elaborate charade around a foundation of organized crime. That runaway fascist plutocracy juggernaut is going to turn most people into its road kill. As far as I can tell, our society is already terminally sick, due to the degree to which capitalist free markets have been destroyed and replaced by the inverted totalitarianism of blenderized forms of organized crime, operated by professional liars and immaculate hypocrites.
Keynesian economics is the jargon of the high priests (and now high priestess) of the STATE RELIGION of faith-based "money," which enabled the biggest banks to become the power of those private corporations blended totally together with the power of government, to become an integrated system of organized crime, as frauds backed by force, which everyone else had to operate within.
The main point was that the MONEY-AS-DEBT system exists because of the success of the application of the methods of organized crime to capture control over the political processes, (and to develop the Keynesian school of economics to conceal that under bullshit.) I regard Keynesian as worse than Austrian, which naturally follows the pattern in the real world that Keynesians are applied, while Austrians tend to almost totally be ignored by the politicians which are effectively the puppets of the banksters, whose only real job is to perform for the muppets, to fool enough of those muppets enough of the time.
IT IS A TYPICAL FEATURE OF SUCH AUTHORITIES AS KEYNES THAT ALL THEIR WORST POLICY RECOMMENDATIONS ARE FOLLOWED, WHILE THEIR BEST POLICY RECOMMENDATIONS ARE DELIBERATELY IGNORED!
After the international bankers were able to successfully corrupt governments to legalize private banks counterfeiting the public "money" supply out of nothing as debts, then "capitalism" was obviously dead, because "capital" was able to be created out of nothing! Since most of the significantly established schools of economics do their best to deliberately ignore that fact, they are all operating within specialized kinds of fantasy lands, where the most important social fact, the SOURCE of the public "money" supply, is not paid attention to. Instead, there are the hermetically sealed bullshit worlds, where ordinary people and businesses are forced by the government to use that fundamentally fraudulent public "money" supply to engage in transactions, which steadily become less and less "capitalistic" over time, because the SOURCE of the "capital" is fraud.
The banksters are the biggest gangsters, who succeeded in applying the methods of organized crime to the political processes, in order to capture control over the powers of governments, and ratchet that up to dominate all of the other public institutions, such as the school systems, and mass media, so that the vast majority of people were reduced to Zombie Sheeple, who adapted to living inside of social pyramid systems that automatically drove debt slavery to generate numbers which became debt insanities, as "money," allegedly the symbol of "capital," was being created out of nothing as debts.
When one does a deeper analysis, then it becomes clear that the superficial view of "capitalism" is an idealized version of how economics should operate, when there is no fraud and murder. However, in fact, fraud and murder DO dominate the actually existing systems. Furthermore, an even deeper analysis demonstrates how and why human beings operate as entropic pumps of energy, which IDEALIZED views regard as being "capitalistic." I.e., energy is invested to be able to generate more flows of energy, as all entropically pumping energy systems must do in order to survive.
IDEALIZED "capitalism" is superficially consistent with the laws of nature. However, that IDEALIZED "capitalism" is a specialized kind of the biggest bullies' bullshit social stories that deliberately ignores, as much as possible, the ways that the REAL "free market" included a free market in fraud and murder, i.e., warfare. That history of warfare created sovereign states, through the long processes of the surviving War Kings being able to enforce their rule of law. That rule of law was inherently paradoxical, since the only connection between human laws and natural laws is the ability to back up lies with violence. All human realities are organized lies operating robberies. Warfare was organized crime on larger and larger scales, and thus, gradually, the best organized gangs of criminals, the international bankers, were able to apply the methods of organized crime to the political processes, in order to capture control over the powers of governments, in order to legalize the current monetary system, based on the enforced frauds of private banks being able to create the public "money" supply out of nothing as debts.
A basic summary of the REAL situation:
Private property is based on backing up claims with coercion. (There is no private property outside of some system of public violence.) The most abstract form of private property is money, which is measurement backed by murder. The political economy is always inside of the human ecology. The debt controls are backed up by the death controls. The actual accounting systems of the flow of energy and matter necessarily include fraud and murder. Governments are the biggest form of organized crime, controlled by the best organized gang of criminals, WHICH IS WHAT HAPPENS WHEN ONE ADDS FRAUD AND MURDER TO CAPITALISM!
It is NOT possible for there not to be fraud and murder within human realities, and any theories based on stopping that are bullshit. The only things which exist are dynamic equilibria between different systems of organized lies operating robberies. The bullshit IDEALIZED "capitalism" is based on deliberately ignoring that, by presuming that there is, or could be, and should be, some sort of idealized "rule of law" which did not suffer from its paradox of enforcement, that only those who are the best at being dishonest, and backing that up with destruction, can enforce that "rule of law" against other groups. REAL "capitalism" includes the ways that NOBODY GUARDS THE GUARDIANS, which is why governments are the biggest form of organized crime, controlled by the best organized gangs of criminals. The only REAL capitalism operates within the principles and methods of organized crime, because those are the REAL ways that human energy systems actually operate, and must necessarily operate!
The actually existing systems have NO good labels which are generally understood. Almost all public debates are utterly absurd, because they continue to respect the banksters' bullshit world view, because they were the ones who captured control over the powers of governments to rob, and to kill to back up that power to rob. Since almost everyone else has adapted for generation after generation to living inside of those established systems, while mainstream economists were mercenary intellectuals, paid to promote the bullshit that the banksters approved of, which sustained the vicious spiral of ACTUAL "CAPITALISM" which includes fraud and murder at its foundations, the ways that we discuss these issues in the public spaces are all almost totally bullshit based, where the language that we use is pretty well totally backwards to what really exists.
http://www.zerohedge.com/news/2014-08-17/control-language-and-you-control-mind
Control the Language and You Control the Mind
"It is the effective manipulation of our belief systems that enslaves us to the present day insanity."
"Capitalism" was destroyed when private banks were allowed to make the public "money" supply out of nothing as debts. THAT WAS NEGATIVE CAPITAL, THAT ANNIHILATED CAPITALISM, at an exponentially accelerating rate, which different people tended to finally notice to different degrees, at different times. The belated perception of "crony capitalism" continues to presume that there still was some "capitalism," after the SOURCE of the public "money" supply became government enforced fraud.
I REPEAT AND EMPHASIZE THE DEGREE TO WHICH IT IS NOT POSSIBLE TO HAVE ANY RATIONAL PUBLIC DEBATES ABOUT THESE ISSUES, BECAUSE THE LANGUAGE THAT IS GENERALLY ACCEPTED AND USED IS BULLSHIT!
The language that we should use is that of general energy systems. However, since doing that reveals that human realities are always systems of organized lies, operating robberies, we are currently being sucked into the social black hole of the history of success in warfare based on backing up deceits with destruction, becoming the foundation of political economy becoming success based on enforced frauds, which are things that the established systems, and their controlled opposition groups, want to continue to deliberately ignore and deny, as much as possible, for as long as possible.
thus the frantic rush for robots there
When every job has been replaced by robots, who the fuck is going to be able to afford to buy what the robots make???
This hasn't been thought through carefully, but then, what has?
A total change of paradigm is required, not just a twiddling of the knobs on the present one.
they will just rule the earth
Homo Sapiens aren't capable on managing a new paradigm. Too stupid to adapt to a more complex system and too driven or controlled by inner biological instructions.
Humans are obsolete. That's one thing you never hear mentioned on Zerohedge. We like to think all utopion for our future but the next step is AI and the singularity draws nearer.
Yes, but there is also a deep difference between Japanese cultural attitudes towards robots, that are quite different than those in the Western world! The Japanese have much LESS of the attitude that robots are creepy, Frankenstein-like, gollum beasts.
While they claim otherwise, in many ways Bernanke and the Fed have put America on a path that mirrors the same unsuccessful path taken by Japan. A path that avoids real reform and bails out the very people that caused many of our problems.
Bernanke upped the ante by setting the bailout and money printing machines on high and flooding America and the world with QE. By selling other central bankers on this solution he has taken the lead in an experiment that is losing traction. Real momentum seems to ebb shortly after each new wave of stimulus and another fix seems to constantly be needed. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/11/we-are-on-path-to-lost-decades.ht...
Rothschild, central, banking is nothing more than a theft vacuum.
An American, not US subject.
"The bankster's creed: 'I steal, therefore I am'."
The banksters creed....
I want EVERYTHING plus 10%
Once again, words lose their meaning. Keynes advised increasing household wealth by public works and small loans, financed by government spending. Not financing large banks and buying failed investments, financed by central banks redistributing taxpayer money. Deception by redefinition.
By the way, this is also how the American legal system works. Might be a connection there.
thanks...& very nicely put
(i was feeling lonely defending keynes memory and eco modelisation on this website.)
"Once again,
words lose their meaning."
For sure, scraping_by!
AS THE MEANING OF THE WORD "MONEY" WAS INVERTED AND PERVERTED, SO WAS EVERYTHING ELSE!
The powers of governments were used to legalize lies, and then force everyone to accept those frauds at face value. From marijuana to money, and everywhere in between, people were forced to organize their lives upon that basis. That corporations are "legal persons" is a huge legalized lie, with a dubious history, as a "legal fiction" which has been enforced! Those who benefited most from those frauds became wealthy and powerful people, who have every possible means to keep their systems going, despite those being based on huge lies, which drive society to become more and more insane, because the enforcement of frauds can not stop them from being false, but only make civilization crazier, as people must adapt, generation after generation, to having their lives controlled by systems of legalized lies, backed by legalized violence!
Enough citizens would have to awaken to those facts, and be able to effectively participate and organize resistance, for that to actually be changed. Enough citizens would have to stop believing in solutions that are based on impossible ideals, or on false fundamental dichotomy fairy tales, for there to be real resolutions. Enough citizens would have to have a sufficiently realistic and scientific view of their society for there to be a chance of genuine resolutions of social problems. However, at present, that appears to have a probability which is practically ZERO.
as the meaning of the words
love (universal & selfless perverted to passion & selfish)
religion (exploration & discovery of the self... to blind faith in the nature of the self & the universe)
god (consciousness... to big daddy)
freedom (to learn, travel, reshape your conditions, become yourself... to chosing between nike & adidas, rep & democrate)
& all the words that'd suggest that human nature is not to kill & destroy everything around
We just need to settle this Sumo Wrestling style.
http://m.youtube.com/watch?v=UxhKb-zZoWE
only one way to suck a dick, eh Janet?
On the wages issue stuff the math because it works very simply.
Price rises with stagnant wages the level of unit consumption fall. So government manages to get a 3% price hike to satisfy Keynes but they force this model.
Sell as low as possible just to keep people in minimum wage jobs and this is? THE GREAT DEFLATION that the bankers fear the most.
So they are there own worst enemies if they continue with prices rising faster than incomes, if you managed to match them you would be in stagnation, but it would likely be better than the deflationary (contraction) model so many nations are slipping into.
The f/x markets just opened, and looks like it's (risk off).The aud got hammered down 30 pips, and gbp got hit as well.
The usd/jpy is flirting with the last Sunday/Monday highs. ( for all the wrong reasons)
~Putinized~
YC - Its the USD to be bought ... The EUR is fucked the GBP is fucked what are you gonna buy Ghostbusters..? Of course its PMs but where is the Feds offer on the PMs..?
Once the Fed is shown ... where is the next offer ... no where. Only guiiltines are appropiate.
-> europe has still a lot of public services sectors run by government & a positive trade balance(although eur was so high) that will sustain some core activity whatever happens to eur + germany apparently very firm to stand against any qe
-> usa has no more middle class, is on the verge of a class civil war, a negative trade balance (although usd is so low), no public services, most gpd is accounatcy tricks from the qe & the buyback & finally china & russia may be getting prepared to dump usd any minute
imo usd is not to be traded, any side being way too risky in this time of war prepraration, fake numbers & high manipulation of the fx rates
It is okay. If the economy collapses we'll have plenty of Fukushima rice to eat. So much in fact that we've already generously started sharing it with all of you.
http://www.straitstimes.com/news/asia/east-asia/story/japan-resume-expor...
USD/JPY going to shock and awe this fall. 105 to suck in the last suckers, then RISE to 85-90 on major geopolitical shock/yen safe haven bid. Nikkei will get hammered, then rebound as the trades unwind Buckle up boyz, this shit's about to get interesting.....
Since Japan was one of the countries that became the most willing and able to follow Western ways, and later Japan was more forced to do whatever various Western international banksters dictated that Japan must do, JAPAN IS LEADING THE WORLD IN THOSE WAYS ...
Balance is important and like so many things in life when it comes to economic policy it is very important to balance the markets reward when it comes to savings and debt. Savings plays an important role in the economy and has been shortchanged, this will come back to haunt us.
The idea of being frugal and living within our means has not been given due credit, living by increasing debt is far too acceptable. When we find it necessary to discuss savings we are back to basics and it is a sign we have strayed far off course in our economic policy. More on this subject in the article below.http://brucewilds.blogspot.com/2014/09/savings-and-role-it-plays-in-econ...