This page has been archived and commenting is disabled.
"Godfather" Of Abenomics Admits Japanese Policy "Is A Ponzi Game... Taxpayers May Revolt"
Koichi Hamada is a special adviser to prime minister Shinzo Abe and one of his closest confidants. That makes his comments, as The Telegraph reports, even more stunningly concerning. Focusing his attention on the fact that Japan must delay the 2nd stage of its planned consumption tax hike - for fear of derailing the 'recovery' - Hamada unwittingly, it seems, explains the terrible reality behind the so-called "godfather" of Abenomics' perspective on the extreme monetary policy he has unleashed...
Select stunning quotes that everyone should ignore and just BTFPonziD in Japan...
“The consumption tax hike is a great big turbulence to the Japanese economy. It may have erased almost two thirds of the benefits of Abenomics,” he told the Telegraph. “At the very least, a third of this great experiment is gone."
“I used to say that we should wait until the third quarter figures are out. However, by various economic indicators, the GDP figures cannot be very optimistic,” he added.
...
“We should increase the consumption tax in the intermediate future,” he said. “This first shock starting in April has been countered by a monetary counter-move. But can we risk another shock in this way?”
He also said that while he fully supported the Bank of Japan’s bond buying spree, he said there would be diminishing returns from quantitative easing the longer it went on.
“I completely agree with Kuroda’s direction of policy, as well as his strategy of keeping quiet and surprising the market. Of course, if you repeat the same kind of action then the impact will be weaker,” he said.
...
Marc Faber, the famous Swiss investor, has accused Japan of "engaging in a Ponzi scheme" because the BoJ is hoovering up most of the debt that has been issued by the government. While Mr Hamada agreed that Japan had created a "mild ponzi game", he also said it was a "feasible" one because of Japan's huge foreign reserves.
“In a Ponzi game you exhaust the lenders eventually, and of course Japanese taxpayers may revolt. But otherwise there are always new taxpayers, so this is a feasible Ponzi game, though I'm not saying it's good.”
Mr Hamada said it was important that Japanese policymakers sent a clear signal that the government was willing to do whatever it takes to smash deflation and pave the way for wage increases for millions of workers.
“I’m optimistic about wages, but the uncertainty is how long it takes," he said. Business is still in doubt about whether Abenomics will continue. If they know it will continue and the profits of export firms are really soaring, they will start to share that with their employees.”
* * *
So to sum up... as long as the BoJ keeps buying stocks and bonds in ever-greater amounts (and Japan has more taxpayers to foot the bill) then the ponzi scheme can survive in its fiscally unsustainable way... what a total farce.
The next time someone comes on business media and says Buy Japan (for whetever reason), maybe a reminder that the architect of Abenomics has said that the policy is nothing short of an attempt to keep the Ponzo scheme of Japan alive.
- 17110 reads
- Printer-friendly version
- Send to friend
- advertisements -


Listen.
Oh yea! Lets see that happen. Japanese are the most collective, passive people, ever!
Hey retard what am I supposed to be listening to? Perhaps try looking up the meaning of a word before using it your posts, better yet piss off and don't come back.
Listen.
Are you a Glo-ball head hunter? Then suck this bitch!
You have NO idea what the Japanese people can do.......you can push them only so far. They are fearless and they are NOT afraid to die.
What the leadership is trying to do, quite simply can't be done.
They are trying to protect the fortunes, not just of the banks, but the moneyed elite who own the real estate, and occupy the corporate offices. Fukushima and demographics have made that impossible.
They need to forget the Keynesian horse shit and work on their real problems.
Then again, we all do. So far, the Swiss seem to be in the lead.
Abe was just 'Grubered'?
Amazing the number of people coming forward these days saying "It was all a lie to decieve you. But trust us, it was for your own good."
They don't even give a shit any more if you know. Arrogant pricks. But they're right about one thing- nobody's standing up to them.
Bangalore whore really needs his ass tossed out - most fucking annoying commenter EVER.
LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN
LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN
LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN LISTEN
Give him a break, maybe his parents were deaf
Hamada:
“In a Ponzi game you exhaust the lenders eventually, and of course Japanese taxpayers may revolt. But otherwise there are always new taxpayers, so this is a feasible Ponzi game, though I'm not saying it's good.”
Anyone who doesn't now "get it" that Japan is in an inescapable death spiral, even after reading that current quote of a senior BOJ advisor, will never "get it" until it's so plainly evident that Japan's Bankruptcy/Default is featured on TMZ and the front cover of truly empty of any intellectual worth MSM outlets such as USA Today.
And good luck, Mr. Hamada, with that "new taxpayer"replacing old taxpers thing, given Japan's demographics and birth rate.
Things may be bad economically in Japan, but life goes on. This week is exam week and my teenager goes to school, takes an exam, comes home and studies from 11:00 am to midnight. Off to school the next day for more exams. Rinse and repeat all week. This weekend, she her and pals will hit karioke and party all day and night. They think their lives are the bomb living in Tokyo.
jb
Your own fault for reading his stuff. His posts are for skipping over not reading.
Funny, they lose all their virtues
to promote a virtuous cycle —
Listen kliguy38 or whatever.
Yes I do. Japan, like America sold their soles for comfort "YEARS" ago.
Now the gov "IS" the fucking master. Like an obedient dog they will wait patiently until master comes home. They will not shit on the rug nor pee on the tile. They will wait, suffer, then die.
It is you who does not understand Japanese or stupid Americans.
Pthwbbt?
What kind of shoes were made with their "soles"?
Listen photoshopboy.
Go Grayscale yourself. Then add a "WHITE" layer with 90% Opacity!
OH!
Pendu
I am a WB7 fan, but that was funny.
kliguy38 "You have NO idea what the Japanese people can do.......you can push them only so far. They are fearless and they are NOT afraid to die."
If all the Japanese were dead then the question is: Would Chinese jackboots marching across the Kanto plain make any sound?
Maybe you don't like this guy, and that's OK, but he's not far off the mark.
On the streets, maybe not so much with the younger generation these days, but the older generation, a little. They've let their leaders get away with this BS for 25 years. With only 50% voting population, that makes Japan and the US politically passive.
Lol, Global retard...I mean hunter calls everyone a retard because he is one, he is just a pimply little kid trolling, forget him.
This should be fun to watch.. IF and WHEN..
http://hedgeaccordingly.com/2014/11/nikkei-225-falls-to-one-week-low-as-...
Japanese are not passive. They are tolerant to a point. You seem to lack real world experience of Japanese. They do have limitations as a culture but passivity is not one of them.
"But otherwise there are always new taxpayers..."
Japan has lost one generation of taxpayers already, starting on the second generation. Might not be as many new taxpayers as this pompous ass thinks.
I agree Payne, Japan has been known to take to the streets en masse, and not like those peaceful, orderly Fukushima demonstrations which were taken over by government/nuclear power-backed community organizers. Personally, I'd like to see it. Don't think it can't start in Japan first.
They might for a little while, like they did with the Anpo renewal, nuclear power, and the state secrect laws among other rhings. Then when the government makes it clear they will not budge, they'll quiet down very fast.
They don't let cows wander around in their houses.
Listen.
Gully Foyle
Ponzi -- you mean like the Social Security system in the United States???
In 2014 Charles Ponzi would be the IMF head or Fed chairman or maybe a Nobel prize laureate working for the NY Times, not in jail.
In 2014, Charles Ponzi wouldn't even rate the third string.
Japan: Totally Fucked.
Nikkei up 200 bitchez
You mix Asian single-minded-detemination with Western-style monetarist games you get Japan.
I read some disturbing numbers on Japan's debt burden earlier.
What could go wrong?
Which was the point of raising taxes...along with pulling demand forward, which will not happen now.
Japan has pulled demand forward until the year 2340 is now. Unfortunately several nuclear reactors completely melted down by then.
While Mr Hamada agreed that Japan had created a "mild ponzi game", he also said it was a "feasible" one because of Japan's huge foreign reserves.
Those huge foreign reserves are "invested" in the Ponzi schemes of other countries. They are absolutely lost. There would be a better chance of reclaiming the money if it had been tossed into a black hole.
Civilization is the mother of all Ponzi games.
Related https://www.youtube.com/watch?v=hcQTysyGwKQ
Inside ?Japan's Controversial Military ExpansionYou're being set up .
See
http://andreswhy.blogspot.com/2014/11/laundry-economics.html
I'd like to believe that the impending dénounment of the Western monetary experiment will teach humanity the lesson about running out of other peoples' money once and for all, but we haven't learned anything to date and I'm not holding high hopes.
Japan can't be helped.
YES WE SHAM
Listen! We all know Japan is a glove puppet of BankTrash. Patching up the wailing weeping wall with a 'print as you go nowhere' policy enables the strawmen to circle jerk another day.
Bah.
Listen.
Kyle Bass said buy nickels, lotsa nickels, and butter, salt too. Soak nickels in salt, pour on the hot butter and eat.
Guys starting a trend here, listen bitchez
booboo just listen like the NSA.
Princes of the Yen: Central Banks and the Transformation of the Economy
https://www.youtube.com/watch?v=p5Ac7ap_MAY
Fascinating 90 minute documentary on Japan's monetary clusterfuck since WWII. A few questions left unanswered, though.
Like how to spell Rockefeller in Kanji?
Quietly bring screwed by the BOJ.
Shinzo Abe: "We sucky fucky you lonnng time!"
Feasible ponzi... *head asplodes•
Talk about bone headed moves, Japan is on a course with disaster. The moment the Japaneses stock market fails to rise enough to offset inflation and realizes even a weaker yen will not help we will see a tsunami of money fleeing Japan.
This will 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
this Nikkei Ponzi abortion now up 250 points wtf?
Hurry up and die Japan
You first. Let us know how it turns out for you.
"I am confident that we have no idea what we are doing. Thank you very much."
up 300 now LOL
Maybe this is the reset they need. Limping along for 20 years has gotten them nowhere. Maybe now a crash can happen.
“In a Ponzi game you exhaust the lenders eventually, and of course Japanese taxpayers may revolt. But otherwise there are always new taxpayers, so this is a feasible Ponzi game, though I'm not saying it's good.”
What a prick.
Why do you razor sharp wits let Tylers get away with this sloppy stuff. It was not a godfather of Abenomics that called ponzi scheme but Faber. Abenomics was aggressive monetary and fiscal policy. The sales tax increase contradicted the thrust of Abenomics.
I believe that of all one must be critical of. Yet Tylers are more critical of the US and more trusting of China and Russia, often taking what those officials say at face value. Many of the comments in this space are critical of everything but the Tylers.
I think we are all better served by questioning every one.