Japan's Economy Implodes Again: No Scapegoats This Time

Tyler Durden's picture

While the easily amused were obsessing with choosing the best one line punchlines to describe the status quo posturing on TV in the form of another highly irrelevant political spectacle, Japan's economy imploded, only this time for real. Unlike back in Q2 when every downtick in the economy was blamed on the Tsunami and on the Fukushima explosion, we just got, 6 months later, the report for Japanese machinery orders which collapsed 8.2% in the month of July, for the biggest drop in 10 months, over and above anything seen during the Fukushima days. This is exactly 100% worse than the 4.1% drop predicted. The reasons according to Reuters: "companies are delaying investment due to worries about a strong yen, slackening global growth and slow progress in reconstruction from the March earthquake." Of these the Yen is by far the most relevant. And thanks to the SNB, the Bank of Japan, whose currency has suddenly become the only safe risk haven, will have no choice but to add balance sheet insult to economic injury and resume JPY interventions, only this time the duration will be even shorter than the last such episode which lasted all of 3 days (see below). This in turn will force all other central banks to do more of the same until relative devaluation, and the biggest currency lower, is the name of the only game in a few weeks. As for the winner: the only real currency which can not be printed, well, that story is very well known by now.

More on the latest confirmation of Japanese economic devastation (which nobody could predict):

Core machinery orders fell 8.2 percent in July from the previous month due to declines in orders from manufacturers and service sector firms, Cabinet Office data showed on Thursday. That compared with a median market forecast for a 4.1 percent decline and follows a 7.7 percent rise in June. Compared with a year earlier, core orders increased 4.0 percent in June, much less than an 8.5 percent rise expected by economists. 


"Capital spending remains on a recovery trend, although the overseas slowdown and a possible delay in Japan's post-quake reconstruction are a concern," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.


Japan's current account surplus fell 42.4 percent in July from a year earlier, Ministry of Finance data showed, more than a median forecast for a 31.3 percent decline. The surplus stood at 990.2 billion yen ($12.8 billion), against a median forecast for a 1.18 trillion yen surplus.

Here is why this is extremely favorable for, what else, gold, which has risen $25 since the GOP's orange spraytan colored circus began.

The disappointing data could place some pressure on the government and the Bank of Japan, which highlighted risks to growth after leaving monetary policy on hold on Wednesday, to ensure that the yen doesn't strengthen further. 


The yen has been attracting safe-haven demand from investors unsettled by Europe's sovereign debt crisis and signs of U.S. economic slowdown even as Japan struggles with its own debt burden and its new government faces a long battle to gain consensus over how to fund reconstruction from the March 11 earthquake and tsunami.


"Uncertainty on overseas economies started to increase in July, which may have prompted some corporations to rein in their capital spending on lower expectations for business growth," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance in Tokyo. 


Japan is on guard against further yen appreciation after intervening in currency markets last month when its currency approached a record high versus the dollar

As for the recently popular theme documenting the collapsing half life of central bank interventions, this chart speaks volumes.

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oogs66's picture

MS was right - globally co-ordinated easing coming up!

Ahmeexnal's picture

Japan's mistake was to have a tight immigration policy.

They should have allowed "illegal" immigrants in so they could now blame them for all their misery.

nope-1004's picture


the only safe risk haven

LMFAO.  Nice one.



Oh regional Indian's picture

All of Japan's post WWII decisions were made for them. Of course Nuclear Power courtsey GE (by way of the genial Queen of Eng, via here US colony) was the most egrigious of all.

Having done extensive business in and with Japan, I'll tell you this, it's obvious to anyone with eyes that see that social engineering in Japan is EPIC. As a people, driven insane in 60 years of American hegemony and totally insane due to the curse of their seemingly free energy.

Japan made no mis-takes of it's own. It has been the longest runnign stage-managed nation-hood in recent memory.


The Curse of Free Energy

Michael's picture

about the topic;

What a marvelous piece of writing this piece is.

To another poster;

"GOP's orange spraytan colored circus"

That says it all. You should copywrite that phrase.

Hephasteus's picture

Japan brings social conforming forces that are so extreme they "wipe" out uraniun forces. Uranus energy brings them to do the most crazy and most extreme weird shit you can imagine because the saturn forces are so extremely powerful.

Japan was supposed to be a model for the other asian countries. They got manufacturing developed and it was supposed to create a 1st world state that would make the other asian countries die to jump into bed. Which is what happened as the west moved from japan to south korea to taiwan to china.

And talk of "rebuilding" post world war II with taxpayer money is another way of saying taxpayer money buying "winners" in manufacturing.

Japan you have 14 year old girls that burn buildings to the ground and china you have 15 year old girls that wear miniskirts made of rubbers full of semen. This is because of the openly and I MEAN OPENLY hostile hentai and child anime porn towards them.

Japan teaches the children to be persistent to insane degrees with mind games like making them ask 100 times for a bicycle before finally giving in. This leads to a bunch of social degenerates that believe no means no until you pester someone to fucking death and break their will. But it makes for armies of people who can openly and viciously attack anyone on  the streets who buys an iphone instead of a nokia. And it makes for people who can mount stalker campains that last a decade or more. This is use of saturn. The part of saturn where you are supposed to expend all your energy and effort to conquer something. Then you simply pick people out of the society that work for the system and you strap the others into computer gaming chairs where they exert their energy on repetitve treadmill game tasks that only require electricity to drain their will and energy forces. It's a profoundly sick society.

They might be ran by the west and western hedgemony but they are employing their own methods to do it. Which brngs us to india which has a similar "thing" with saturn and uranus. And if india isn't careful it will be put on the same crazy train of psychotic expression of control. Fortunately it seems india is resisting it pretty well.

Oh regional Indian's picture

nice Heph. Can't say I share your optimism regarding India though. It's firmly in the grip!


Léonard's picture


Japan's mistake was to have a tight immigration policy.

They should have allowed "illegal" immigrants in so they could now blame them for all their misery.

Thanks God the Japanese resisted and continu to resist to the Anglo-Americans multi-ethnic and multicultural global village madness project through massive immigration movements that always result in the genodice of the native populations and the destruction of millenium old cultures and hyper violence (like in Europe right now).


StychoKiller's picture

When playing musical chairs, one should NOT have casts on one's legs, like Japan does now! :>(

curbyourrisk's picture

Is that what they are calling it these days?  In Biblical days it was called "Day of Jubillee".


That's right...at a Sovereign level I fully expect governments to forgive all debts to foreign nations...BUT, completely fuck over their citizens to tune of perpetual debt slavery....  Our kids are fucked....our kids kids have NO CHANCE at this pace. 

vote_libertarian_party's picture

Economic implosion....good for another buy buy buy round tomorrow.

NumNutt's picture

Oh Fuckingshima!!

I am watching the futures markets....doesn't seem to be reacting to this news, only Hong Kong is down:

Hang Sen 40 19833.00 20048.00 20104.00 19827.00 -215.00 -1.07

I guess the markets are getting used to bad news. Kind of like wrecking the car 20 times, then having your daughter tell you she just wrecked it again, no big deal.

Id fight Gandhi's picture

Futures never react right, never touch em.

Nikkei might no likey afternoon...

Zgangsta's picture


The Nikkei is now...uh, blue (what you and I would call red, which is what they would call black)

max2205's picture

Rock, meet hard place

tekhneek's picture

...More like Japan, meet Belarus

rsnoble's picture

Could it have anything to do with the rumors I hear that Tokyo is glowing green?

Is that true btw?  I really don't know if it is or not.

Threeggg's picture

You should be asking this question: Is California, Washington, Idaho, Alaska and Utah glowing green ? Just for your info, I have been following these developments (like a hawk) from the 11th of March, as well as monitoring "all" available rad monitoring sites on the net. (daily)

Between the EPA, commercial and private radiation monitoring array's in the U.S..

They have all been shut down 100% within the last 4 weeks (period)


P.S. I don't consider RAD-NET and radiationnetwork trustworthy.

JW n FL's picture




Strangte flash in Fukushima Nuclear plant

and for a little closer to home and my personal Fav!


 Gulf of Mexico flight

All Credit to George Washington!

JW n FL's picture


LOOK! a new plant on the east coast has been shut down! YAY!!


yabyum's picture

Utah will always be "hot"....downwind from all the open air tests...It's SAFE!! so said Washinton. I remember the Nuns taking is to "inside " lunch hour. Me, I was out eating the grey snow!!.

yabyum's picture

Utah will always be "hot"....downwind from all the open air tests...It's SAFE!! so said Washinton. I remember the Nuns taking is to "inside " lunch hour. Me, I was out eating the grey snow!!.

Threeggg's picture

Utah will always be "hot"  Yes, background was an average 43 CPM constantly. but next door.......................................?

Check out the comment on July 12, 2011 from Driggs, Idaho as this rad monitor was shut down. Then look at the next message. I was monitoring this site, up until it was taken off the net. There were 300+ CPM spikes starting to occur everyday, until it was shutdown "by someone" ?


Same thing with this one in Redlands, California

It was having 250 CPM spikes (air) and 350+ CPM spikes when they were testing rainwater on August 10th. After that day it has never returned, as it was shutdown "by someone" ?



slewie the pi-rat's picture

mormons have nuns?

(just kidding, y_y~~~couldn't resist!)

kito's picture


JW n FL's picture




you would want to be Kali compliant with non-toxic rounds!


once again, please think of the enviroment!

StychoKiller's picture

Come again?  If youse want non-lethal rounds, why not use marshmallows?

Sgt.Sausage's picture

I had to move all mine to the basement - in fear that my living room floor would collapse and put it there anyway... and yet I still feel the nagging urge to acquire more. Always more.


medicalstudent's picture

lurk to post ratio really 70:1?


wait til the rice harvest...

JW n FL's picture

I told you Godzilla was real.. you and your science bullshit!

Proof is on the way! good luck getting him in the lab!

Mr Lennon Hendrix's picture

In a few short weeks the world will visually find out what happens when a nuclear plant explodes and no precaution is taken.  Mothers in their first trimester when Fukashima blew are about to give birth to babies exposed to massive amounts of radiation.  The visual of broken DNA sequences will tip the world on the reality that it faces concerning what will be the greatest man made disaster in the history of this planet.

From my iphone... I mean blog....

Bicycle Repairman's picture

Since these babies will probably bring shame on the parents, this is Japan we are talking about, I wonder if we'll even see the babies.

Ahmeexnal's picture

I believe we might already have.

Pokemon.  Dragonball Z.  Howl's Moving Castle.  the list is endless

Dugald's picture

Most unlikely is my guess......face is all..........

DoChenRollingBearing's picture

Poor Japan.  We buy some bearings from them, we have settled on one manufacturer who can sell us what we NEED, no necessarily all we WANT.  That will help impose some dicispline on our company.

But the manufacturer tells us they are REALLY SQUEEZED by high input costs (like almost all of their exporters).  So far, we can live wiith their prices, as they have so far as well.

Fewer machinery orders might free up bearing capacity for us, unless some of those machines are for making bearings...

Threeggg's picture

Problem is that 80% of their Nuclear energy Capacity to feed industry is shut down. 42 reactors out of 53 total are shut down and not producing power !

DoChen, have you been watching Fox ?  LOL

Respectfully !


DoChenRollingBearing's picture

Our supplier reports no direct problems due to Fukushima.  They are in SW Japan and have kept all of their promises to date post-disaster.  The rotating blackouts I heard about (a while back) do not seem to be hurting them.

Fox? Not today!

Crisismode's picture




WHY are you even manufacturing ANYTHING, anymore???


Manufacturing is soooooo old school and passe.


Just take your company's $$$ and move them into the financial bizzaro world and just flip ETFs and options and futures and 4x and just BE HAPPY!!


Making real stuff is just such a losing game anymore.



DoChenRollingBearing's picture

Our company in Peru imports rolling bearings (already made) for cars and trucks.  We buy mostly from Korea, some from Japan and a little from China.  Why not from the USA?  Because near monopoly Timken does not want our business.  Imagine that, the foreigners treat us better.

In many ways, the bearing manufacturing business is kind of a lousy one.  High capital costs for precision machinery.  Need skilled workers.  And yet, JUST too many of them so that can't form a cartel.

Making real stuff IS hard.  LOTS of competition.  I would NEVER try to make ANYTHING here in the USA.  No way.

"flip ETFs and options and futures and 4x", the Bearing has lost money almost every time he has played those games, so I am out of that...  Been buying gold over the past decades...

Dugald's picture

Most bearings roll.......you perhaps mean Roller bearings....as an engineer...just saying...

gwar5's picture

But Krugman said the Quakenami would be good for the Japanese economy.


tekhneek's picture

Okay. Can we kill the Krugman piece? I laugh every time but I mean c'mon... can we?

Fox Moulder's picture

He also said the Keynesicane would fix the US economy.

gwar5's picture

But Krugman said the Quakenami would be good for the Japanese economy.


Thunder_Downunder's picture

So japan is on the ropes, Europe is a mess, the US has mould on it... and forward p/e says the equity markets are cheap.


I hope Ben brings a big helicopter...

problemfixr's picture

It's 106 miles to Chicago, we've got a full tank of gas, a half a pack of cigarattes, it's dark and we're wearing sunglasses.  Hit it!!!

breezer1's picture

don't worry, the prince of peace speaks tommorrow, all will be well.

lolmao500's picture

Seriously, who are those nutjobs thinking that the Japanese yen is a safe currency? I mean come on, Fukushima? No? There's radiation up to freaking Tokyo. I know they'll never have the cojones to evacuate what should be evacuated but come on.

Their level of debt? No?

Their pyramid of population? No?

Come on people!