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Surprise!! Japanese Stocks Surge After Machinery Orders Crash 14.6% - Worst In 5 Years
So much for that short-lived hope-fest that Abenomics was not a total and utter disaster. Japan Machinery Orders (excluding -rather ironically- volatile orders) plunged 14.6% Year-over-Year in November (missing expectations of a 6.3% drop) for the biggest fall since Nov 2009. In this new farcical normal of course, this is just what the surging JPY of the last week needed and it is now dumping back towards 117.50 dragging Nikkei futures 150 points higher with it!!
Massive miss and drop in Machine Orders...
and the ubiquitous "bad is good" ripfest in stocks/USDJPY
And
- *JAPAN 10-YEAR GOVERNMENT BOND YIELD FALLS TO RECORD 0.245%
And then they actually admit something might be wrong:
- *JAPAN'S CABINET OFFICE SAYS CUTS ASSESSMENT OF MACHINE ORDERS
- *CABINET OFFICE:SEE SIGNS RECOVERY IN MACHINE ORDERS HAS STALLED
Charts: bloomberg
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The Nikkei was NOT following other bourse's today.
Japan just approved the largest budget in history. Abe is going full retard.
Japan approves record Y96tn budget - FT.com
Yup. And it won't work.
DavidC
We're gonna spend more to do less and you'll be eternally happy with it, peasants.
That Nork Hot Rock soup with Steamed Twig is Fantastic!
lol Knuks I watched " The Interview" over the W/E and was pleasantly surprised. It's actually a pretty good flik.
It was like "Naked Gun #4". No undertones, and a lot of fun. The "Kim" character was for cinema. It was a lotta fun.
You should watch it. :-D
We saw it that weekend of first release. Favorite numblah one son downloaded it. I had the same reaction. It was fun!
There's no way under the sun that the Norks took offense.
There was nothing about which to be offended. Unless, of course, Kim-Dong-Ill was portrayed as Gay or Black then we'd of had Ferguson with a limp wristed lisp.
Same crap as that YouTube video started Benghazi. Which, when I looked at it had had only about 4500 hits. Yeah, right.
Sumptin's wrong, Yen.
Me thinks it was collusion between Sony and DC to make Sony money and DC another living enemy (Oceania, dear Watson)
Plus, would be like those crazies in DC to create a new enemy that can't hurt anybody, no retribution, etc.
See the latest, that the military social media websites were hacked from somewhere ion Maryland?
Social media websites, FFS!
Japan is a living abortion.
CRAZY TALK!
I mean the yen surges on news that their 30 year hits .3%?????
Have I broken my New Years resolution? I feel like I've po'ed some folks again.
The CentCom Twitter hacks. Yeah, I saw it knuks. The actual accounts were managed by TWTR servers. Typical click bait.
Som ding wogn
Always new records when measuring in fiat currency.
Never liked the term "full retard"
There is always moar retard. Japan is approaching 30 years of it.
Just because it failed the last 24 times they tried doesn't mean it will fail the 25th time.
We sold less! Woo hoo!
The banksters need to repay us.
This whole world thanks to Washington and Obama is upside down wtf good is bad and bad means buy wtf
While I agree that Obama is a corporate and financial services industry whore, this unfolding, worldwide economic disaster is 40 years in the making. There have been a succession of presidents and congresses who are culpable.
global depression.
where is the deer?Oh, he got blinded in the head lamps last time around and now's living in that section 8 housing down the road colleting SSD.
Talking about disability bennies, a guy I know collects mental health and work disabiltiy from CA and the Feds and lives in a 2 BR fancy assed assisited living condo on a massive bluff overlooking the mountains, and gets enough that he shops at Whole Foods and has 2 cars, a Jag sedan and a new Mini. He's single.
Fucker has life by the balls on our bucks.
Calling the low for the year in. Time to resume upward crash.
Bad is good, good is bad, the economic freak show at Kamp Keynes continues.
I'm no fan of Keynes but I think he's probably rolling in his grave with what's been going on the last 7 years.
DavidC
Absolutely. The Krugmanizaion of his already flawed work is an abortion, just as MMT is an abortion of Friedman and Schwartz all intended to justify bigger MOAR gokbermint, control and excesses. We're past the point of idyllic socialism (for everybody but me) and entered into a fucking perversion of rationality and excesses indicative of the fall of civilizations. And gosh, what with globalization there ain't any de-linking, meaning the whole world makes its way back to the stone age. The socialists have won. Everybody's going to be equally poor and in squalor except the bourgeois. Who are gonna start eating them selves along side the revolution eating its founders.
Sing along with me now!
Happy days are here again....
https://www.youtube.com/watch?v=5dd-Un22DzA
Watch it and read the comments. Sound familiar?
Good god! Stop the boring, intellectual lazy -ism bullshit.
I thought ism's were out and we should now become all inclusive...lol.
I'm not as knowledgable as you, but something just doesn't sit right calling it a victory for socialism. To me, it has been the natural progression of modern culture that has us humans so distracted and ambivalent that this concentration of power is allowed to grow. From the street, maybe it looks like socialism, but from the mountain top, it looks like fascism.
Hope that made sense.
Maybe we should go back to calling it colectivism, that term really screws with my university indoctrinated relatives. Back in 2008 I'd say 0bama had 'socialistic tendencies' and they'd respond that he wasn't trying to nationalize the means of production. Pure academic doctrinaire bullshit, you should have seen the reaction when I called him Frank Marshall Davis Jr.
I think knuks summed it up quite nicely.
Keynes Theory always relied on the state basically writing bad checks (monetary expansion via what is called public debt) something you and I would go to jail for.
Now one can say this criminal act & government debt bought "good things" (like food for the poor or lottery tickets for the grifters or tanks, whatever your persuasion is) but at the end of the day politicians & statists say we have to pay it back.
My answer has always been and continues to be no.
He was in fact a socialist and his General Theory of Employment, Interest & Money came two decades after the creation of the national-socialist Fed (its what it is isn't it, its "nationality" is just ours), if you doubt the ease with which "his theory of employment, interest & money" could be put into live practice among the nations, just read his foreword in the above book addressed to the German people of...1936:
"The theory of aggregate production, which is the point of the following book, nevertheless can be much easier adapted to the conditions of a totalitarian state than the theory of production and distribution of a given production put forth under conditions of free competition and a large degree of laissez-faire. This is one of the reasons that justifies the fact that I call my theory a general theory."
That has always sealed the deal for me, a general theory, perhaps workable (it is a theory afterall) under any "socialist model", better under a totalitarian model of society...until it doesn't...and where are we now?
And no, thats not my junk ;-)
Keynes = full retard (in his day)
Kruggybear = Moar Retard.
Liquidity traps are irreversible, and this is where things get interesting. Watch for even more signs of financial war morphing into kinetic war as we approach the economy's death spiral toward the event horizon (maybe we're already there?). I like how the SCO/BRICS members are positioned here (not that I support either "side" - I'd prefer to stay neutral when it comes to wars I don't agree with), but I'm not going to underestimate what a wounded dog will do either (or who it will bite). This is about to get very interesting, indeed..
Everything is a fucking freak show in the markets
I can't wait to see the London open.
Surplise?
QE and ZIRP inflate asset prices, but in the real world economy are clearly deflationary. People get no income to spend from bonds or savings accounts and excess capacity is encouraged through lower borrowing costs. 20 years of QE in Japan, seven years of QE in the US, and years of monetary easing threats in Europe have left interest rates at record lows, providing empirical evidence of such.
Look at the fucking 30 year in the US. That ain't normal.
It will all transpire much more rapidly in the U.S., IMHO. Not even God himself could print enough "money" to hold up something as large and unresponsive as the U.S. "economy."
I'd sure like to read some comment on the reasons for the strength in JPY over the last couple of weeks.
How did that become 116 to 1 from 121?
Abe reelected with promise to continue to explode deficit and QE. Continue policies that moved rate from 100 to 120 in the first place. That promise seemed to cause Yen to strengthen. Why?
That's an easy answer. The liquidity trap is complete, over, and done with. The "market" demands more QE than is possible to provide anymore. The dollar is also strengthening for many of the same reasons. It won't be long now, so I do hope that you have your hedges in place (I'd personally recommend physical gold and silver, if I were in the recommending business, which I am not).
The liquidity trap should cause the currency which is most trapped to continue to become weaker. Abe has promised to do his best to accomplish that. What caused the currency market to ignore that for the 3%-4% rebound in two weeks?
It appears to me that, over the last 5 years, Japan's stock market is one of the top gainers. What is all this talk about Japanese failure?
And as for current events, is not the ongoing lowering of oil prices good economic news for Japan, since Japan is a big importer of energy?
Japanese purchasing power is deliberately being destroyed by the BOJ to, ostensibly, create a currency-based trade advantage and while this trade strategy was (somewhat?) negated by the higher cost associated with their depreciated currency (more expensive imports) the fact that worldwide deflation (due to mal-investments made possible by the very misguided policies the BOJ is implementing) is starting to assert itself (and the corresponding stall in aggregate demand) there may not be a market to sell into at any price, currently or future-wise.
Thank you.
Seems to me like part of the story is that the BOJ is doing the same the The Fed is doing: issuing funny-computer-entry-money, "loaning" it to member banks (ruling families), who then use it to buy their own ruling-families' Japanese corporation stocks, thus propping up the market and with it their families' net worths. Every dollar these ruling families thus protect in the stock market is a dollar taken out of the savings of the working class people, siknce the funny-money devalues their life-savings by the devaluating the yen. Staightforward class-theft.
I think I understand the "there may not be a market to sell to". (I guess some call that "deflation", which is a normal part of the business cycle, and has been long overdue.)
And there is the long-argued population "aging", or, actually, lessening. I think this is good for Japanese people, but not for Japanese corporate stocks.
Decline in energy price is a good thing for energy users, yes.
However, every manufacturer is receiving the benefit. No relative advantage for Japan. And my guess is that even lowere energy import prices do not offset the damage done from the nuclear shutdowns. The import costs for even recently cheaper energy is still a currency drain / weakening.
Thank you.
Yes, Fukushima has to be a very large energy "hit" (besides all its other adverse affects).
NIKKEI has only gained in Yen. When translated into other currencies, it is either flat or is down. Look at the Japan ETF from iShares (EWJ).
Thank you. Yes! I see. EWJ is definitely in a downtrend.