The Difference Between Theory And Practice

Tyler Durden's picture

Theory: "Theoretically, there should be no impact from the consumption tax increase on corporate spending or long-term corporate planning," said Junko Nishioka, an economist at RBS Japan Securities in Tokyo.

Practice: "...but a large number of Japanese corporations seemed to see a large impact from the hike on final demand," as Capex collapsed 5.1%.


And so goes Japan...

Chart: Bloomberg


As we noted last night, and AP reports,

Japan's economy shrank more sharply in the second quarter than first estimated and the latest indicators suggest only a modest bounce back since then.


The world's third-largest economy contracted at an annualized rate of 7.1 percent in the April-June quarter, according to updated government figures Monday. The initial estimate released earlier this month said the economy contracted 6.8 percent. Business investment fell more than twice as much as first estimated.




The revised data Monday show business investment fell more than twice as much as estimated before, or 5.1 percent, while private residential spending sank 10.4 percent in annual terms.

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remain calm's picture

BTFD = Buy The Fucking Diapers (Japan translation)

Dick Buttkiss's picture

"In theory there is no difference between theory and practice. In practice there is." — Yogi Berra

U4 eee aaa's picture

one of my all time favorite quotes because it is one of the most accurate if not *the* most accurate

max2205's picture

Central banks are the new terrorist. 

knukles's picture

Of what nonsensical non-theory does he speak?
All (even Keynesian clap-trap) economic theory suggests that a higher tax upon consumers will decrease consumption thereby flowing over into less capex by companies as demand for final product has subsided.

NidStyles's picture

BTFP = Buy The F*&king Promises is more accurate. The real question is will the purchased item ever be worth what you paid for it...

Godisanhftbot's picture

 Theory and price?


 Like the theory that a bunch of scammers mining 50 digit numbers has value?



i_call_you_my_base's picture

Theoretically libertarians should've protested stop and frisk rather than that racist douche's right to evade taxes for twenty years (civil disobedience has less bite when you hide it for decades and it benefits you financially).

Theoretically, ZH'ers should have supported ferguson protesters rather than derided them because they were black.

Theoretically, ZH'ers should have supported OWS rather than shit on them for being out-of-work hippies (even though many ZH'ers are out of work).

Application of your philosophies without prejudice is what fucking matters.

We all have our hang ups I guess.

Anusocracy's picture

Theoretically, if leftists truly believed in multiculturalism they would support anarchists in their desire to live in a culture without government.

1. (Sociology) the total of the inherited ideas, beliefs, values, and knowledge, which constitute the shared bases of social action

i_call_you_my_base's picture

What above is leftist and not libertarian? The fact that you called my views leftist shows how truly corrupted and lost you really are.

Anusocracy's picture

Libertarians are part of the approximately 99% of the people who want and support government.

None of your examples have anything to do with freeing people from the curse of someone else's desire of controlling them. Government is a weapon, I criticize any use of it.

So describe your political beliefs and I may apologize.

i_call_you_my_base's picture

Here are my political beliefs re the above:

Stop and frisk is bullshit illegal search and seizure. And no one here ever supported the overthrow of it. I actually spent time here arguing against it. How is that even possible given the beliefs you and others push here? All that bullshit you spout about the constitution?

OWS was legitimately trying to push clawbacks and undermine the banking system. They needed support from the middle and those here just shit on them.

Ferguson was a protest against the use of militaristic and illegal force. Something almost everyone here agrees with, but all I heard here is that they are "lazy niggers" looking for cell phones.

What you and others here don't realize is that you are the prime targets of the divide and conquer strategy you claim to acknowledge and understand.

It's pathetic. And you're pathetic.

Maybe someday you'll find a principle you can actually apply in the real world.


jarana's picture

What for do you need the support of people you called pathetic?

It is your colectivism what is being attacked by divide-and-conquer, and so you are furious.

There is people not interested in applying their principles in the real world via coercion, but changing their own way of interacting with reality.

Liberate yourself and you will be helping others on doing the same.

Stop asking for help, that's pathetic.

Kirk2NCC1701's picture

Theory = date with Rosie Palm
Practice = date with Rosie Lips.

Amish Hacker's picture

 In theory, love is chemistry. In practice, sex is physics.

Schmuck Raker's picture

Am I just ignorant? ....or does Japan not know what "Seasonal Adjustment" is for?

CHX's picture

In theory, a "good theory" should "more or less" apply to / explain real world phenomena. If it doesn't in practice then the theory is either wrong, flawed, or incomplete.