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The Japanization Of Europe In 9 "Different This Time" Charts
Still convinced it's different this time? Think again... these 9 charts suggest Europe is very much on its way to Japan... and remember Japan was doing QE through this period too...
click image for large legible version
"People often frame problems both in Japan and in the Euro area in terms of deflation... [so they] tend to think that they are monetary problems that can be easily solved by monetary policy, and poor policy prescriptions can result.” - Masaaki Shirakawa
Clearly that is not working!
Source: Goldman Sachs
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Moar! ponzi .. or Donzi? those boats are fast..
http://hedgeaccordingly.com/2014/11/marc-faber-japans-bond-buying-progra...
So "Europe" is fucked? Good. End this monstrosity and split it in half.
For fuk (ah, i mean fuk-u) sake, please save Japan, so save the world.
Japan is actually less fucked up than Europe, IMO.
If Europe could have done what Japan has done....they would have. Kuroda wipes his ass with a picture of Draghi.
It is a RACE to the bottom not a NEGOTIATION to the bottom.
Japan is absolutely more fucked. Look at a balance sheet. Besides the European countries hold the most gold reserves of anyone in the world. Japan holds dick(tiny amounts)
I hope you aren't saying the Japanese have tiny dicks. Because you might just loose in a pissing contest. :-)
real men do not piss contest.
sorry, kid.
The balance sheets are meaningless. If they were important you would not see yields where you see them now. Just look at the PBOC reaction the the BOJ.
Gold? I hold gold. I am this close to firing it for not doing its job.
Not doing its job? . . . it does its job PERFECTLY !
It never changes — it always stays the same
Oops except when they can put the dollar price wherever they want it. Until you can pay in ounces you still need the bits of green paper. Tragic
Europe did not invade and slaughter millions of Chinese in living memory. Japan did.
Everything else is just passing time until the day.
Nah. Europe is boned.
Whereas Japan will probably suffer a currency collapse, their private sector is still pretty competitive (even though S. Korea and Taiwan are nipping at their heels.)
Their population issues are a problem today, but a collapse in the high tax and welfare burdens will see their economy doing ok.
Europe has deeper structural, political and cultural issues. I don't really see a happy ending in either case in the near-term, but at least Japan can easily name their enemies, and they know where their problems are located. Europe on the other hand is all over the place.
PS: Both Europe and Japan are highly dependent on foreign energy supplies. Now I might be spuriously correlating those two factors, but it is worth considering at least.
Japan's prospects are better, I agree. They are a homogenous society and I believe that its people still have some semblance of duty and honor. For instance elderly citizens volunteered to clean up Fukushima. Europe like the US is becoming Balkanized.
Remember when you were a kid and got a " Matchbox Car ™ " racetrack.
When you juiced it too much the cars levitated~~~ That's Japan.
"Clearly that is not working!"
Well........only if you are one of the 95%. And it is most definitely working if you are one of the 0.01%.
This whole thing collapses when the masses repudiate debt, as was the case in the US Great Depression.
We're close, as the governments are picking up the slack and the masses are simply tapped out, can't get debt, or refuse to get it.
To use a line from the 'War Games':
I've come to the general conclusion that this monetary system sucks.
Just follow Plan Hitler and everything will be fine Europe.
In all probability, there is an X-factor in all of this whose effect will defy all logical conclusions. Too many of these Z-hedge, end-of-the-world-as-we-know-it scenerios ignore counter-force or contrarian possibilities because it might weaken the story's premise and its desired effect. Such opinion pieces should be edited for greater comprehensiveness.
For example? Got a counter-force or contrarian possibility?
Ok I gott this! 30 year auto loans from age 12 and 10 year free interest on 40 year home loans!
I'll bet Dennis Gartman is looking for ideas on Z/H tonight.
I'm long copper in $Zimbabwe terms.
http://www.amazon.com/s/?ie=UTF8&keywords=copper+socks&tag=googhydr-20&index=aps&hvadid=50562470561&hvpos=1t2&hvexid=&hvnetw=g&hvrand=293600153741514910&hvpone=&hvptwo=&hvqmt=b&hvdev=c&ref=pd_sl_2o11dd1g02_b
Yuck yuck yuck. Gartman: "I bought gold a week ago Wednesday in ringgit, then shorted it against the krona the following Monday. (Gee, I hope they don't care to look any of this up - I just want to be viewed as a 'playa')."
The falling value of both the yen and euro will reek havoc through contagion. For months the major world currencies had traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner. Recently several major currencies made multi-year highs or lows depending on the match-up .
The Fed recently whacked the dollar down but for how long? Because of weak demand for goods and most of this freshly printed money flowing into intangible investments inflation has not been a major problem, but the seeds for its future growth have been planted everywhere. John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currency trading is about to get very wild in the article below. Please note, this may also be sending a signal that the whole system is unstable and the stock market could drop like a stone due to contagion.
http://brucewilds.blogspot.com/2014/09/caution-alert-currencies-may-get-wild.html
Golly, another cut-and-paste job that still contains the same typo as always. I'll bet your article is just as carefully crafted and reasoned as this oft-repeated advertisement.
10y Spanish Bonds under 2% for the first time EVER ....insanity
Net migration figures in Europe the highest + in the world , Japan still attempts to remain a closed society which means energy consumption per person is likely to be much higher in Japan.
Net migration figures Y2010
Japan :270,000
Spain: 2.25 million
Italy : 2 million
Youth unemployment the result of the above policy of European and domestic national capitalists.
The jobs are mostly pointless but what's more important is that the youth in Europe are denied any real purhasing power which makes family formation almost impossible until late in life for native people.
Subtract the effects of international net migration flows in Europe which help to increase birth rates for a short time and the demographics are much worse in Europe......