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Kuroda Comedy Hour (Or Has The World Gone Mad... Again?)
The head of Japan's Central Bank kept a straight face while unleashing a torrent of comedic genius this evening with regard the Japanese economy and its monetary and fiscal policy success... Enjoy...
*KURODA: EXPECT JAPAN TO CONTINUE MODERATE RECOVERY (let's hope not....)
*KURODA: INFLATION EXPECTATIONS RISING ON THE WHOLE (nope...!)
*KURODA: BOJ EASING HAVING INTENDED IMPACT (Misery Index at all-time record highs)
Then this...
- *KURODA: BOJ ISN'T TRYING TO CAUSE NEGATIVE RATES (ok great...)
Followed by this....
- *KURODA: BOJ TRYING TO USE EASING TO LOWER YIELDS OVERALL (wait what, you just said... oh forget it)
And then..
- *KURODA: NEGATIVE RATES IN MARKET REFLECT BOJ'S STRONG EASING (the strong easing that is not trying to cause negative rates but is trying to lower yields, right?)
Seriously!!
*KURODA: WEAK YEN HAS BEEN PLUS FOR JAPAN'S ECONOMY (oh you mean apart from the now record chronic trade deficit?)
On the terrible missing J-Curve (via Patrick Barron of the Ludwig von Mises Institute of Canada):
Perhaps I can shed some light on Japanese Prime Minister Abe’s missing J-curve; i.e., why Japan’s trade deficit seems to be increasing rather than decreasing after massive monetary intervention to reduce the purchasing power of the yen. Monetary debasement does NOT result in an economic recovery, because no nation can force another to pay for its recovery.
Monetary debasement transfers wealth within an economy by subsidizing exports at the expense of the entire economy, but this effect is delayed as the new money works it way from first receivers of the new money to later receivers. The BOJ gives more yen to buyers using dollars, euros, and other currencies, as the article states, but this is nothing more than a gift to foreigners that is funneled through exporters. Because exporters are the first receivers of the new money, they buy resources at existing prices and make large profits. As most have noted, exporters have seen a surge in their share prices, but this is exactly what one should expect when government taxes all to give to the few.
Eventually the monetary debasement raises all costs and this initial benefit to exporters vanishes. Then the country is left with a depleted capital base and a higher price level. What a great policy!
The good news is that Japan does know how to rebuild its economy. It did it the old-fashioned way seventy years ago–hard work and savings.
And then - to conclude...
- *KURODA: HARD TO ADDRESS PROBLEM IF TRUST LOST IN JAPAN FINANCES
Now we wonder why no one trusts the constant flow of lies and spin spewing from Japanese leaders mouths night after night...
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Fuki stopped leaking also.
Bitchez
Can they vote the bums out?
"Can they vote the bums out?"
No more than we can vote our own bums out.
You forgot where he added that the Japanese population demographics would be improving secondarily to the high cesium levels that would cause more children to be born with two heads so the population would be increasing going forward.
That's it! You mega-genius! You have solved the Kuroda Konundrum
High cesium levels cause lower yields!
I remember when the majority of the world's population thought of the Japanese as some type of super genius race.
In reality, it's much closer to fact to state that the Japanese are diligent, servile, loyal (to their own demise/detriment) worker ants, who excel at tasks requiring rote learning and experience.
How else could their incredible passivity towards their criminal government (now, or in the days of their slaughter due to heeding the calls of their Emperor to never surrender during WWII) and the incredibly transparent liars that fill the ranks of institutions such as the BOJ be explained?
They wouldn't rise up & revolt even if their "elected" officials decided to openly start a soylent green program or drop atomic bombs on their own cities to further Krugman's 'Broken Windows' economic theory.
They are docile lambs.
Wait, I lost track...what country are you talking about again? Sounds like most western countries...
I agree, mainly, but there are conditions of deprivation that would create revolution in places even as complacent as many (most?) western nations.
I can't envision a scenario where the Japanese would ever openly, violently revolt against whomever is officially designated to "administrate."
Homogeneous society with feudal concepts still informing their thought processes. Their society is more cohesive because of a common heritage so they tend to put up with more longer.
I admire alot of things about Japanese culture, their inability to accept failure as part of the learning process is not one of them, and yet we are doing our best to emulate it (QE4 here we come!).
You are both correct. Bacause TIS's observation of Japanese superiority was accepted in the 80's as truth, it spawned management and educational paradigms in the West during the 90's that effectivelly saw that workers and students (future workers) be turned into a Japanese-style corporate soldier.
If you work for a a corporation in the west, you know this to be the case.
It's the ultimate irony that William Edward Deming, an American, is revered as a literal hero in Japan, due to his efforts in post-war Japan to get Japanese industry to excel at quality control in the manufacturing process (leading to things such as JIT production methods, etc.), and that Deming was basically shunned by American corporations.
there is no west or east on a sphere :)
Worker ants, exactly. Same thing in China.
I've been to China close to two dozen times, sometimes for as long as a month (or close to it) at a time.
The Chinese & South Koreans are different (though the North Koreans have been broken by their plainly insane, sadistic successive "leaders").
I think the Chinese and South Koreans would openly and violently revolt against their government given the proper conditions.
I've witnessed Chinese people turn mildly aggressive against local officialsmover such things as regulatory inspection extortion exercises and removal of gasoline/diesel subsidies (and South Korean Unikns workers turn very violent regularly, essentially outright fighting riot police).
I can imagine they'd turn much more aggressive if their lifestyles were being debased at a very rapid clip.
There are more protests in China per capita thsan in the U.S. Just saying.
p.s. I respect many things about Japanese culture and the Japanese people, too, which is why it especially pains me to see their unwillingness and/or inability to refresh their own Tree of Libertad.
You dont revolt against yourself.
See global Observer's post below, for description of Japanese society.
Yes, Japan is a heirarchical society and with very little individuality. It is true not only for those at the bottom of the heirarchy, but for also those at the top, i.e those at the top also work for the hive with as much dedication as those at other levels. There is no Japanese 1% ripping the rest of them off. They may sink or sail (depending on whether those in charge are stupid or smart), but will do so together.
The misery chart is bullish it looks like a clear breakout to a new high
and riots due to re-start of nuke reactor plants, not misery or failed policy. ;) er, strikes and protest. ignore the gas and bullets (greece)
America is as dumb as Japan is complacent?
Alas, there's no actual rabbit in Keynes-san's hat.
keyne theories are things of past.
nowadays finance is piloted by rabbits.
When you can snatch the debt-pebble from my hand, it is time for you to leave.
CPI won't rise until they include oil and food stuffs. Until then it's, "The more problems we come across, the more money we print."
"The beatings will continue until morale improves."
I think that just about sums it up.
Winning is being able to say "it could always be worse". This is our world wide leadership's common theme.
Jesus Christ, just stop talking.
....but isn't there a clueless leader (and I use the term loosely) around here praising a glorious & bountiful economy! Makes you wonder what these guys are puffing on....QE maybe??
It just means that Milhouse has got a new Choom Gang.
Contrary to popular belief in Japan, people in the government are not smarter than the rest of the population (despite their mostly Todai/Harvard educations), they are simply in charge. It is no different in the US. The problem in both countries is the hoi polloi who do nothing about the situation, although for different reasons owing to cultural differences.
It is interesting to observe, a bitch to experience.
I reckon it's the same as in the US: anyone who wants to to take the reigns is a moron. Why would anyone want to lead this fucking shit show?
why wouldn't anyone want the job? you just have to juggle a hot potato for 4-5 years and pass it to the next schmuck before it blows.
you won't even have to do any work like actually try to fix things, how easy is that?
given it can pass through 10-20 hands before the hot potato poops, the odds are good shit won't hit the roof on your watch, and you'll come out with all the perks and nary a scratch to your name.
you folks need to think more like a sociopath...
Destruction of the economy will continue until the economy improves!
I thought they just do what they are told. Including the 'leaders'. Kind of like in the west.
"We have to pass the bill so we can read it."
"I voted for the bill before I voted against it."
Kuroda is obviously a student of U.S. politics.
What's japanese for "Botoxed horse face is my mentor"?
Yet another product of Todai (University of Tokyo) and Oxford. He gets his hubris from Todai and his Western economics from Oxford. What could go wrong?
Meanwhile linkers are freaking cheap.
Dumbest yellow monkey at the zoo!
Off point, I know, but, being a classic movie fan, especially B-movies, there's a great movie with Pat O'Brien titled, "The World Gone Mad", made around 1931-32. It's about a D.A. and a reporter who try to find the killer of a D.A. who had uncovered massive stock fraud - who'd a thunk? - and it's a hoot! This little gem was actually included in a 50 movie horror-pack I bought years ago, 50 Horror Classics. Great movie and a wonderful collection of horror stuff from Nosferatu and Dementia 13, Francis Coppola's first, to titles such as "The Swamp Women." Great fun when the world's gone mad! Speaking of mad, I just noticed WB VII has chimed in - great stuff, as usual. I'd die without you, WB - and my movie collections, of course!
"Turning Japanese, I think I'm turning Japanese, I really think so..."
I think they know full well the extend of the madness they're in and I bet they've already prepared their Katanas for when SHTF.
On the other hand: All is well as long as people keep buying Dollars for Yen. It's always nice to see someone beeing weaker than yourself...
The Japanese will probably turn out to be the first failed race in modern times. They just won't survive their current financial and nuclear holocaust. Not even taking into account the incredibly active faults the country is built on predisposing them to even more potential nuclear disasters. In a race to catastrophe it's neck and neck between Japan, China, US and Europe but I'm pretty sure Japan has it's neck out furthest. anyone see those recent Ceasium readings coming from Fukushima. Is the government still playing that "reactors are in cold shutdown" card.