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Japanese Bonds & Stocks Drop As Services PMI Tumbles Into Contraction
After three hopeful months of greater-than-50 prints for Japanese Services PMI, February saw it plunge back into contraction with a considerably worse than expected 48.5 print. This drags the overall composite PMI for Japan to 50.0, its weakest reading in 4 months as New Orders drop to May 2014 lows and employment craters to its lowest since Oct 2012. On the heels of last night's weak JGB auction and sell-off in stocks on relatively hawkish comments from economists, tonight is seeing more of the same as the Nikkei 225 is having the worst 2 days in 2 months and JGB yields are jumping once again. Abegeddon is back...
Japan Services PMI worst since April...
Stocks... worst 2-day drop in 2 months - first 2 days in a row drop this year!!
But as we know, a weak morning session in Japan will bring the BoJ stock ETF buying program into action stat...
and bonds plunging...
This comes after the biggest surge in wages since 2000 - suggesting the BoJ's days of insanity are perhaps limited.
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Of all the crashes to come I'm most looking forward to the Japanese one. It'll be beyond epic
Gonna be a death match between China and Japan before that happens.
Japan will get crushed long before China. Korea, Indonesia, Singapore, Maylasia, ect will get taken out first.,
Buddy Guy is HUGE in Japan. They'll need him.
"Damn right. I got the blues"
It's not gonna be that interesting in Japan, seeing as the people there will not burn shit to the ground, unlike the free shit army in America.
The Japanese people are usually calm and polite. When they get pissed off....we saw what happened in WWII.
Cannot compare in any way t situation before WW2. That setup was in the making well before the turn of the century with the Navel Laws and the relentless squeezing of commodity trading towards Japan. This time is it almost completely self made. From what I hear from two (European) friends living in Tokyo, there is no focus to the outside world on this one. Only two people, I know, but still....
As a footnote, freaking remarkable how the population remained calm and decent after the Tsunami. No looting for over a week (by then people really got hungry and went for the food rather than 3d-tv sets), so unlike the USA it is uncanny.
Personally, there are few people I feel sorry for having such a government than the Japanese. (Yes, you get what you vote for, but you get my point)
When in the history of the world has a politician or government ever held its hands up and admitted causing a fuck up. Its ALWAYS someone elses fault.
Awesome! Hentai's gonna get CHEEP!
While I feel for the Japanese people, I see no one marching in the streets against these lunatics, so I too will enjoy watching the house of cards collapse. Mainly because I am so tired of watching the BOJ pump USD/JPY every single night for 2 years
You never will. Japanese don't protest. They don't disobey the government. They don't question authority. If they are told to lay down and die by the government, they will lay down and die.
Like lambs to the slaughter, perhaps 50 years from now as Japan rebuilds from the economic/demographic/social tsunami that approaches. They can take what was virtuous and beautiful from their culture, reject their sheep like conformity and build a stronger, better society.
Then they should start "de-Americainizing" and "de-Westerninzing" ASAP and returning to their strong culturals roots before Westerner started to change Japanese way of life and society.
I've never been to Japan, so I can't say...but I've read stuff from those who claim to know that life in Japan is not as bad as one would think...Not a cakewalk for sure, but for the majority with a modest lifestyle, very do-able. The economy isn't booming like it was, and big fortunes aren't as easy to make, but there isn't mass starvation or anything like that. Services are still being provided, and the trains are still running...
If true, maybe that's why they aren't protesting like you'd think they should. And if true, then perhaps the trouble isn't the economy, but the few at the top who aren't able to get rich quick enough in that current environment as they have been for years.
Maybe the only thing wrong with their economy is that it has adjusted to the new normal. Maybe the trouble is coming from the elites who are trying desperately to recapture the good old days. Maybe Japan has decided to hunker down, downsize for now, in response to a sort of internal 'voice' that is telling them that the non-stop gerbil wheel growth thing will only make things worse.
I wonder if Japan isn't an example of a country marching to a different drummer than it's ruling classes.
Rapidly aging population, largest debt/GDP ratio in the developed world, nobody having any babies, China right next door pissed off at them AND THEY CAN'T EVEN START A WAR WITHOUT AT LEAST THE TACIT APPROVAL OF THE US.
And now bond yields are rising. (Is that almost 50% rise in bond yields in only two months?)
Brace for impact. And somebody get Kyle Bass on the blower.
Bad news is causing a world market to drop? What kind of Bizzaro world are we living in?
You beat me to it. I agree. What gives? I thought good was good, bad was good, worse was gooder, and absolutely horrific was gooderest.
I sit here, confused. How isn't this bullish?
I too am Perplexed
Should I stay or shoud I go
https://www.youtube.com/watch?v=GqH21LEmfbQ&list=RDGqH21LEmfbQ#t=1
Just realax it looks like a v shaped recovery all is fine in the world till its not.
Only 2 down days in a row YTD? That's impressive.
Yeah, exactly..."let's all get nervous now."
Perhaps the time has come to see if a Central Bank can indeed fail?
That would certainly be a shock to the system.
I still think Banks should start issuing gold back "certificates"...say ten thousand dollar FRN's payable in actual gold in the Bank should the owner like.
Japan charade can continue for a bit longer. The house of cards will fall on an external shock to the system - my guess would be Europe later in 2015. Euro crisis on Grexit with some bank failures could send shockwaves to Japan. Then we'll see some real fireworks.
The Tsunami should have been the external shock, everyone would have updated their assumptions about the direction of their economy and no one moved against them. If losing 30% of your domestic electrical generation capacity, increasing fossil fuel imports by 58% to compensate, and decimating half your internal supply chain wasn't a shock its going to take something pretty fucking epic.
In a communist global system this type of scenario can go on forever since currencies are just paper.
Pointless to show these stats until the ruling psychopaths decide to pull the plug only then will these numbers have meaning.