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Japan's WTF Chart

Tyler Durden's picture





 

By now everyone has seen some iteration the following chart of relative sovereign debt/GDP values, in which Japan is an outlier:

As well as this chart of sovereign interest to revenue, in which Japan is also an outlier:

And certainly this chart showing Japan's straight diagonal line of debt/GDP:

....

....

....

But how many have seen this chart showing global sovereign debt as a percentage of total government revenues? 

Is there now any doubt after seeing this why the proverbial four horseman are really just one giant black swan, only not one of failed bond auctions or something quite as dramatic, but something as simple and mundane as the smallest uptick higher in rates which would blow up the entire global financial farce, starting with the most imbalanced domino of all - the land of the rising sun?... And that at least Greece is not Japan?

Source: Harvard Business School, 9-212-091, Hayman Capital Management,

 


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Tue, 05/15/2012 - 22:45 | Link to Comment Stackers
Stackers's picture

"Japan is a bug in search of a windshield" --- John Mauldin.

 

http://www.youtube.com/watch?v=4mn4ujPLKvA

Tue, 05/15/2012 - 23:04 | Link to Comment SilverTree
SilverTree's picture

Harvard Business School, HA!

 

Rates go up? HAHA!

 

Print baby print? Fuck-yeah!

Tue, 05/15/2012 - 23:16 | Link to Comment azusgm
azusgm's picture

Hayman Capital

Tue, 05/15/2012 - 23:24 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Yup, Kyle Bass can hope and hope and hope, but his bets against JGBs will never pay off.

Tue, 05/15/2012 - 23:49 | Link to Comment CClarity
CClarity's picture

Kyle Bass will eventually be proven right and paid handsomely.  Painful waiting and time, but ultimately.  He has more and better staying power than most.  So many are just chumps.

 

Wed, 05/16/2012 - 00:00 | Link to Comment What does it al...
What does it all mean's picture

Japan INVENTED the term, Quantitative Easing... http://en.wikipedia.org/wiki/Quantitative_easing

Bernanke is copying the Asian kids' homeworks as the rest of the American students are...  Nothing new here.

So the question really are:  

 

1.  Are we going to have a lost TWO-decades?  

2.  We have more capacity for more debt?  or

3.  Let's make sure besides the radiations that we put in Japan (Fat Man and the little boy) and God (Fukushima), let's make sure Japan NEVER has a nuclear bomb and continues the path since their 1989 crash.

http://en.wikipedia.org/wiki/Japanese_asset_price_bubble

Wed, 05/16/2012 - 01:02 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

In a bid to increase their on-the-go population, Toyota's coming out with a new bench-seat car called the Sexus.

Wed, 05/16/2012 - 02:12 | Link to Comment Manthong
Manthong's picture

 

 

So where will the shit hit the fan?
Out of Athens, Madrid or Tehran?
London, Lisbon or Rome
Or from Ben here at home?
I’m with Kyle,
Keep your eye in Japan.

Wed, 05/16/2012 - 02:58 | Link to Comment Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

this is nothing but the keynesian endgame

 

bring it on!

Wed, 05/16/2012 - 01:07 | Link to Comment q99x2
q99x2's picture

4. Civil War II

Wed, 05/16/2012 - 01:40 | Link to Comment Freddie
Freddie's picture

Kyle Bass is about to make about $10 billion off of his Greece bet.

Wed, 05/16/2012 - 07:18 | Link to Comment Stoploss
Stoploss's picture

Based on those charts above, hope is not required.

Tue, 05/15/2012 - 23:45 | Link to Comment SMG
SMG's picture

The anti-Christ system rewards those who get others into more and more debt......

Freedom from debt is true freedom.

Wed, 05/16/2012 - 00:08 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Japan has taken a glowing lead exporting dosimeters to the rest of the world.   

Wed, 05/16/2012 - 05:57 | Link to Comment mick_richfield
mick_richfield's picture

Shortly to be followed by their entire population of child-bearing age.

Wed, 05/16/2012 - 08:43 | Link to Comment Iam_Silverman
Iam_Silverman's picture

"entire population of child-bearing age"

 

Mmmmmmmm, oriental wimmen!  Send em' in!

Tue, 05/15/2012 - 23:11 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Long fertile land with water rights, legally-fuckable scotch and multiple calibers of ammo.

 

And nickels.  LOTS OF NICKELS.

Tue, 05/15/2012 - 22:48 | Link to Comment Lost Wages
Lost Wages's picture

Japan is like a Timex. Takes a lickin' and keeps on tickin'.

Tue, 05/15/2012 - 22:59 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Until Reactor #4 gives up the ghost.  

Tue, 05/15/2012 - 23:24 | Link to Comment DaveyJones
DaveyJones's picture

more like a fake Rolex

Wed, 05/16/2012 - 00:23 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Land of the Lising Suck?

Wed, 05/16/2012 - 08:30 | Link to Comment duckduckMOOSE
duckduckMOOSE's picture

Takes a lickin' and eventually moves the entire population to western China. Ooooops! Shhhhhh! That's a Secret!

 

Wed, 05/16/2012 - 08:49 | Link to Comment Iam_Silverman
Iam_Silverman's picture

"eventually moves the entire population to western China"

Wow, just wow!  Sounds like a great conspiracy theory there.  Care to flesh it out more for us?  Let's start with China building all of those empty cities, and then they develop an "Earthquake Device" and "Tsunami Enhancement Controller" to wipe out Japans coastlines and render the rest of their land uninhabitable by radiation leaked from "disabled" reactors.  They (the Chinese) graciously offer those industrialist Japanese succor and shelter, as long as they bring their advanced manufacturing skills and knowledge with them.  BANG!  New Asian Rim powerhouse.  This really could make an excellent James Bond or Mission Impossible 13 plot!  Really!

Tue, 05/15/2012 - 22:49 | Link to Comment Yen Cross
Yen Cross's picture

BoJ and Kampo are " BID"!  Exporters.  They lose the game. USD to 82.oo dxy.  Then ka-boom short squeeze! The market is soo heavily oversold right now!

Tue, 05/15/2012 - 23:00 | Link to Comment barliman
barliman's picture

 

Well, I have not junked you ...

... but would you mind wearing a broadband WiFi enabled Go camera if you are planning on BTFD?

It would be a guaranteed viral hit ... though you, personally, might not survive the experience.

barliman

Tue, 05/15/2012 - 23:15 | Link to Comment oldman
oldman's picture

@Yen Cross

Hey, Yen,

If you are aging and your environment is completely radiated with Death staring you in the face, eyeball to eyeball, and no one is riding to the rescue-------------well, it changes your perception on the little things that used to seem so important. I don't think the Japanese are to busy with the normal reality these days.

I sure as hell wouldn't be, were, I, in their shoes              om

Wed, 05/16/2012 - 01:08 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Man who have rice paper in bank may have hidden yen for destruction.

-Neoconfucius

 

Tue, 05/15/2012 - 22:48 | Link to Comment Big Slick
Big Slick's picture

Fortunately Japan has a young demographic workforce.  Coupled with rich natural resources, Japan should be able to work its way out of this. (sarc.) (sarc.)

Wed, 05/16/2012 - 01:45 | Link to Comment Freddie
Freddie's picture

I am trying to figure out what will happen to Japan.  Do they eventually move most production offshore?  How will they defend their borders? It is an island so it is a bit easier to defend.  Does it slowly implode into a more humane North Korea with poverty?  Does South Korea take it over eventually?

Wed, 05/16/2012 - 02:52 | Link to Comment oldman
oldman's picture

@freddie

Sir,

Plainly put---Japan is dead and all who live there will ---on a long enough time line---die.

Not a big deal because it will happen in a couple of more locations as well----it is called self-destruction which our species is by far the biggest winner of this game.

The point is , if you are old enough to understand death, and a lot of younger people do, how would you feel if someone said,

"Hey, Dude, you owe me four trillion dollars---when are you going to pay?"

I couldn't do anything with that except to laugh and buy the poor guy a drink---he was just a victim of a black swan event---what to do? But am I going to truly be sad about it or even think about it?

No.

And I don't think the Japanese are either.

When you almost drowned, did you worry about getting through college---I don't know, dude---i'm just a stupid oldman   om

Wed, 05/16/2012 - 06:09 | Link to Comment mick_richfield
mick_richfield's picture

They were preparing to defend themselves after the departure of the Americans with a secret and large nuclear weapons program.  ( If they do it, it's OK and we help them.  If Iran does it, it's the Axis of Evil and we kill them. )

But the accident -- I guess -- at Fukushima blew that program up, and is now gradually making the Tokyo area uninhabitable.

I think that their most mobile people, especially those of child-bearing age, will emigrate.  The rest of the culture will make no attempt to protect itself from China, and will stabilize not as a more humane NK, but more like a pooer version of Taiwan with big memories and few friends. 

More mystics, fewer industrialists.

Wed, 05/16/2012 - 11:25 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

I guess using a plant in an earthquake and tsunami ridden area to build nuclear weapons decreased security instead of increasing it.  Oh well.  As for whether it was an accident or not; perhaps we don't know what lit the fuse, but we know who laid the dynamite.  Risk Management 101.

Tue, 05/15/2012 - 22:50 | Link to Comment Au Shucks
Au Shucks's picture

tiki-tiki-tembo no sa rembo cherry berry roochie pip perry pembo has fallen into a well!

qualitative japanesing upcoming

Tue, 05/15/2012 - 22:53 | Link to Comment Yen Cross
Yen Cross's picture

Can you say " stealth"?

Wed, 05/16/2012 - 00:46 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

What a riot.   I imagine the Greeks right now must be celebrating in the streets over their fiscal prudence in comparison to the Japanese.

Wed, 05/16/2012 - 09:12 | Link to Comment Iam_Silverman
Iam_Silverman's picture

"qualitative japanesing upcoming"

Well that's OK, quantitative Japan-easing, now that's not OK.

Tue, 05/15/2012 - 22:51 | Link to Comment km4
km4's picture

Guess who is tied with Ireland for the #5 WTF spot

Tue, 05/15/2012 - 23:24 | Link to Comment spdrdr
spdrdr's picture

Hmmm.  For some reason, I read that as "Iceland", not "Ireland".

 

Wed, 05/16/2012 - 01:06 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

After Fukushima, the only charts over there that really matter is your X-ray chart.

Tue, 05/15/2012 - 22:51 | Link to Comment Thucydides
Thucydides's picture

Harry Cary meet Black Swan....Poop meet fanny.

Wed, 05/16/2012 - 06:55 | Link to Comment max2205
max2205's picture

Banzi!! Harry Carry!!

Tue, 05/15/2012 - 22:53 | Link to Comment the 300000000th...
the 300000000th percent's picture

And now they have to import oil because they shut down all of those expensive to build and have not yet got a profit return nuclear generators

 

Tue, 05/15/2012 - 23:36 | Link to Comment HungrySeagull
HungrySeagull's picture

You don't understand that Fukushima's Reactor Complex has been a ongoing disasters (Plural)

If you do a bit of reaserch, you will find that the US mainland and much of the North hemisphere is at risk ongoing.

Banzai!

Wed, 05/16/2012 - 01:56 | Link to Comment GMadScientist
GMadScientist's picture

To be fair, they didn't ask for them.

Wed, 05/16/2012 - 09:54 | Link to Comment WallowaMountainMan
WallowaMountainMan's picture

there is no profit return from nuclear power. there is only avoidance of accounting for long term costs. except now, we are into nuclear long enough to have long term costs actually starting to show up.

no big deal though. people who profit from nuclear can just take the short term $$$, and then, when need be, have the corporation file for bankruptcy, and walk away free and clear.

incorporating is the biggest fraud ever created by man. artificial protection from risk for the stockholders. no protection for everybody else.

 

Tue, 05/15/2012 - 22:53 | Link to Comment spooncutter
spooncutter's picture

sneaky mrs watanabe

Tue, 05/15/2012 - 22:54 | Link to Comment Rich Bagg
Rich Bagg's picture

Japan has a printing press, hence, no problem.

 

 

Tue, 05/15/2012 - 22:54 | Link to Comment Yen Cross
Yen Cross's picture

 Mrs. Watanabe is junking me? Ok, I get it!

Tue, 05/15/2012 - 22:54 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

Greece is not Japan because they lie about their economy better than Japan.

For all we know, China could be Japan, or the U.S.

Tue, 05/15/2012 - 22:56 | Link to Comment Yen Cross
Yen Cross's picture

 Fukishima?

Tue, 05/15/2012 - 23:35 | Link to Comment Vlad Tepid
Vlad Tepid's picture

For someone who openly purports to make their living off their knowledge of the Japanese economy, your inability to spell a (recently very important) Japanese prefecture sort of astonishes me.  Wait, no it doesn't.

Wed, 05/16/2012 - 09:15 | Link to Comment Iam_Silverman
Iam_Silverman's picture

Maybe the Kanji doesn't translate well in Google Translate TM

Wed, 05/16/2012 - 06:26 | Link to Comment Mountainview
Mountainview's picture

And Japanese don't rely on others to buy their bond crap!

Tue, 05/15/2012 - 22:55 | Link to Comment Gadocat99
Gadocat99's picture

"Challenger, you are go for throttle up..."

Tue, 05/15/2012 - 22:58 | Link to Comment bill1102inf
bill1102inf's picture

:( ......

Tue, 05/15/2012 - 22:54 | Link to Comment data_monkey
data_monkey's picture

They should be forced to leave the EU immediately and put on some island in the Pacific where they can be financially quarantined. Sheesh!

Tue, 05/15/2012 - 22:58 | Link to Comment barliman
barliman's picture

 

Amazing what 20 years of denial and corruption can accomplish.

Meanwhile, with Greece about to go AWOL on the EU, the interest rates for government bonds outside of the U.S. should begin to blow wider through the rest of Q2.

At the same time Operation Twist is supposed to start shutting down ...

... nope, that's not happening!

So ZIRP uber Alles and we'll Twist again this summer are givens.

But somebody among the multi-nationals is going to have to start adjusting their forecast looking forward to the REALLY down side. Who is going to go first?

barliman

Wed, 05/16/2012 - 06:52 | Link to Comment youngman
youngman's picture

"the interest rates for government bonds outside of the U.S. should begin to blow wider through the rest of Q2."

It should is correct...I would incliude the US in there too...now with all the government, political,  and central bank interventions the question is will it???????

The politicians and bankers know it can't....it will destroy their budgets...their political careers...

Tue, 05/15/2012 - 22:58 | Link to Comment Ineverslice
Ineverslice's picture

"I'll gladly pay you tuesday for some fatty tuna today."

Tue, 05/15/2012 - 23:11 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Toro toro taxi!

Tue, 05/15/2012 - 22:59 | Link to Comment bill1102inf
bill1102inf's picture

WTF is the big deal?!?!?!?!  Why don't we show Dildos / Worldwide Outstanding Soverign Default Loan Risk Hedge's Short 10X Bull *2

 

Tue, 05/15/2012 - 22:59 | Link to Comment Yen Cross
Yen Cross's picture

 Did anyone read the charts? Who is the leader of the club?

  EXPORT Economies!

Tue, 05/15/2012 - 23:03 | Link to Comment skistroni
skistroni's picture

Did you just call Greece an EXPORT economy? ROFLMAO. I can't stop laughing !!!!

Tue, 05/15/2012 - 23:37 | Link to Comment Yen Cross
Yen Cross's picture

I'm LMAO over your Juvenile Answer, on my ": coat tails:

   Answer the question ya little puke!

Tue, 05/15/2012 - 23:39 | Link to Comment Vlad Tepid
Vlad Tepid's picture

Oh, can I answer?  Ok, here goes:  "Japan, followed by a bunch of other countries that aren't export economies!"  What did I win?

I mean  -    What Did, I ":win:

(Please say "How to Type Coherently for Dummies")

Wed, 05/16/2012 - 08:46 | Link to Comment csmith
csmith's picture

Yes...right now they're leading the world in the export of bank deposits...

Tue, 05/15/2012 - 23:00 | Link to Comment Zgangsta
Zgangsta's picture

So that explains why the yen is the strongest performing currency going!

Thanks for clearing that up.

Tue, 05/15/2012 - 23:01 | Link to Comment Yen Cross
Yen Cross's picture

Ok tough guy! Go long CHF! Ohh wait? There is a floor on that capital " inflow"!

Tue, 05/15/2012 - 23:00 | Link to Comment Hulk
Hulk's picture

negative population growth and a very old population, its over for Japan, if only thay had a fat lady...

Tue, 05/15/2012 - 23:04 | Link to Comment Yen Cross
Yen Cross's picture

 Demagraphic destruction. EXPORT ECONOMY!    ( CPI+) Korea is softening.

Tue, 05/15/2012 - 23:03 | Link to Comment barliman
barliman's picture

 

Hmmmm .....

...how about just castrating their bankers and politicians on Pay Per View?

You could have interactive betting on which ones would shatter the wine glass when they scream!

barliman

Tue, 05/15/2012 - 23:37 | Link to Comment HungrySeagull
HungrySeagull's picture

As drunk they are, you can do it right there live. They wont notice till the morning light.

Wed, 05/16/2012 - 03:34 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Looks like a fat lady.Sounds like a death chant.

http://www.youtube.com/watch?v=uXT79_fYNHs&feature=related

Tue, 05/15/2012 - 23:01 | Link to Comment tok1
tok1's picture

you think markets short yen (ie up to 82 then back down below 80 again) or squeese the otherway.  I've been selling JGB.. on spike today hoping yen keeps weakening.. to get pull back in bonds..

 

Tue, 05/15/2012 - 23:00 | Link to Comment mendigo
mendigo's picture

Once again Japan sets the standard.
Land of the setting sun.

Tue, 05/15/2012 - 23:05 | Link to Comment Yen Cross
Yen Cross's picture

Any alternatives? Eastern Europe, perhaps?

Wed, 05/16/2012 - 06:56 | Link to Comment youngman
youngman's picture

The Republic of Georgia...doing pretty well...Colombia..doing very well

Wed, 05/16/2012 - 09:23 | Link to Comment Iam_Silverman
Iam_Silverman's picture

"Land of the setting sun."

Yes, a very good analogy there!  They may be the first to start the fiscal-unwind ball rolling.  Remember, as the sun sets in Japan, it is rising somewhere else.  Just the same goes with financial chaos - at starts in one area and contagion allows it to spread worldwide, usually following the rising sun (markets open in the A.M.).

Good job, Grashoppa, you have snatched the concept from my hand*.

<*I know, that's a Chinese stereotype, but I am a dumb American, how am I to know?>

Tue, 05/15/2012 - 23:02 | Link to Comment YesWeKahn
YesWeKahn's picture

He was so bullish,  his trades alone moved the market. Man, this guy is scary.

Tue, 05/15/2012 - 23:01 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Sovereign debt is a BS term.  GAAP debt is what matters i.e. what is actually promised.  The U.S. easily matches Japan in this regard.

 

Tue, 05/15/2012 - 23:18 | Link to Comment Matt
Matt's picture

What numbers are they using? if US National debt (excluding contingent liabilities, unfunded liabilities, etc) is around $15.7 trillion and total revenues are ~$2.2 Trillion, isn't USA closer to 700% Debt to Income?

Tue, 05/15/2012 - 23:36 | Link to Comment Lednbrass
Lednbrass's picture

I was wondering this myself.  My guess is that they are ignoring intragovernmental debt, which is a rather neat trick to pretend that a vast chunk of money doesnt need to be repaid and wont come out of the same revenue stream when the securities in the Federal IOU jar are cashed in. By only counting "debt held by the public" it makes it look like less, though for what purpose I cant say.

Tue, 05/15/2012 - 23:51 | Link to Comment jamezelle
jamezelle's picture

chart was dated 2010. So US soveriegn debt was ~11Trillion? (I don't remember)

Wed, 05/16/2012 - 00:05 | Link to Comment lasvegaspersona
lasvegaspersona's picture

mom...Matt stole my comment...word for word mom

Tue, 05/15/2012 - 23:02 | Link to Comment cnhedge
cnhedge's picture

US Daily: 2012 April FOMC Minutes Preview
http://www.cnhedge.com/thread-4528-1-1.html

Tue, 05/15/2012 - 23:02 | Link to Comment CCanuck
CCanuck's picture

I'm a novice, sorry for the double post.

 

Tue, 05/15/2012 - 23:02 | Link to Comment CCanuck
CCanuck's picture

I'm a novice when it comes to the global finicial world. It may sound simplistic, but how come Japan keeps rolling?

From what I do understand about economics, and the repeated distaters, Japan should have blown up already, No?

Thanks for all responses,

CC.

Tue, 05/15/2012 - 23:03 | Link to Comment Sans-culottes
Sans-culottes's picture

Kicking the can down the road for a very long time and the economy is a ponzi scheme. No professor in macroecon know it

Wed, 05/16/2012 - 00:33 | Link to Comment CCanuck
CCanuck's picture

How? Is someone buying their debt? are they buying treasuries with yen?

I'm worried that U.S economy can's be kicked even further. 20+ years of this.

WTF!

Tue, 05/15/2012 - 23:14 | Link to Comment Freebird
Freebird's picture

Welcome Canadian bitch. You will do fine. & yes they should have.

Tue, 05/15/2012 - 23:16 | Link to Comment Hulk
Hulk's picture

They own lots of US Treasuries, and that has made all difference !!!

Tue, 05/15/2012 - 23:56 | Link to Comment Bolweevil
Bolweevil's picture

Dolphin meat is their secret sauce.

Tue, 05/15/2012 - 23:01 | Link to Comment Sans-culottes
Sans-culottes's picture

Looks like they have everything in working order....to fail

Tue, 05/15/2012 - 23:01 | Link to Comment JackT
JackT's picture

That is one bad ass Black Kamakazi Swan. The irony is that you can actually see the Black Kamakazi Swan before it strikes.

Tue, 05/15/2012 - 23:07 | Link to Comment booboo
booboo's picture

but Japan has cornered the market in glow in the dark toys, Nagasaki Beef and tender Diachi Sushi. Wish I knew their tenderizer secret.

Tue, 05/15/2012 - 23:16 | Link to Comment bshirley1968
bshirley1968's picture

It's called radiation.

Tue, 05/15/2012 - 23:04 | Link to Comment crawldaddy
crawldaddy's picture

its all that radiation, its making their debt grow.

Debtzilla.

Tue, 05/15/2012 - 23:46 | Link to Comment RECISION
RECISION's picture

Godzilladebt

Tue, 05/15/2012 - 23:05 | Link to Comment d2themfi
d2themfi's picture

so this basically means that japan pays a much lower rate of interest on its debt relative to other high debt countries, or am I misunderstanding? That plus their ability to maniuplate the value of their currency has allowed them to sustain weimar like levels of debt? Am I saying anything incorrect?

Wed, 05/16/2012 - 00:07 | Link to Comment DeadFred
DeadFred's picture

Don't forget an astoundingly docile population, that probably helps.

Tue, 05/15/2012 - 23:08 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Digg It, America!! You really can print your way to the top! 

Tue, 05/15/2012 - 23:09 | Link to Comment Seafarer57
Seafarer57's picture

Tyler,

Are you developing a sense of humor?

Tue, 05/15/2012 - 23:11 | Link to Comment world_debt_slave
world_debt_slave's picture

as a butterfly flaps its wings

Tue, 05/15/2012 - 23:09 | Link to Comment Yen Cross
Yen Cross's picture

 Japan is deeply in debt. So was the United States , going into W.W.II ! Japan is not my first investment choice.

  Japan is an opportunity, and a great network of manufacturing.  I would not, underestimate Japan. DEBT/GDP (149%)

with a savings rate that is 3 times us? Japans GDP is only a few billion under Chinas! Japan knows the recession game!

Tue, 05/15/2012 - 23:22 | Link to Comment azusgm
azusgm's picture

Are you kidding? Think about how much electricity the country has for that manufacturing sector and how much they are having to pay now. Those old savers are just that -- old savers. That means that they will be spending down or bequeathing those savings. What will be happening to the health of their irradiated people over the next very few years?

Not an enviable position.

Tue, 05/15/2012 - 23:25 | Link to Comment Yen Cross
Yen Cross's picture

 Have you ever visited Japan? It's an island Nation! You really need to travel.

Tue, 05/15/2012 - 23:41 | Link to Comment HungrySeagull
HungrySeagull's picture

The United States in world war two was a Industrial Giant. Japan sends 6 carriers, we send 100.

Yes the Zero was a wonderful and fearsome airframe, however nothing beats American Iron and horsepower.

That too has passed on a long enough timeline. Starting with Datsun.

Tue, 05/15/2012 - 23:51 | Link to Comment THX 1178
THX 1178's picture

UHHH FUKUSHIMA!?!?! Great investment opportunity right?

Tue, 05/15/2012 - 23:11 | Link to Comment stocktivity
stocktivity's picture

I had an uncle badly wounded at Pearl Harbor....Fuck Japan!

Tue, 05/15/2012 - 23:23 | Link to Comment Yen Cross
Yen Cross's picture

Both my Grandfathers fought in WW2! That is irrelevant! One of my  Uncles died in Viet Nam!

   FUCK CHINA!

Tue, 05/15/2012 - 23:46 | Link to Comment HungrySeagull
HungrySeagull's picture

One was in Korea.

The Chinese came not in the hundreds, but in the thousands. They would throw the dead and dying on the wire so that the dozens of more troops may walk over them safely to get at the Marines.

It's a shame, had plenty of warnings from China as he approached the Yalu.

One built Bombers and the other had already served in WW1. It would be years before I discovered the actual battle reports from his Command for the 10 mile strip of hell that my Grandfather endured.

Even today, I am not sure what kept him on the line in the face of such death, fury and random death.

Tue, 05/15/2012 - 23:53 | Link to Comment dwayne elizando
dwayne elizando's picture

My grampa said he possibly got a japanese hooker pregnant while fighting Korea.

Wed, 05/16/2012 - 04:02 | Link to Comment Likstane
Likstane's picture

My Korean stepfather fought a Japanese pitbull in a Chinese dojo with a Vietnamese made set of channel locks.  I had it on video but lost in in Thailand. 

Tue, 05/15/2012 - 23:25 | Link to Comment wisefool
wisefool's picture

Speaking of Asia, is Hang Sang EDIT: -500 points anything we should be concerned about? http://www.bloomberg.com/quote/HSI:IND

Or maybe BTFD?

Tue, 05/15/2012 - 23:56 | Link to Comment WonderDawg
WonderDawg's picture

I saw that. And PMs continue to get monkeyhammered.

edit: oil, too. Red all over the board.

Wed, 05/16/2012 - 00:00 | Link to Comment wisefool
wisefool's picture

Watching the bloomberg Asia feed. Oil inventories piling up. Gas prices still high ... and it is -550 now. -2.74%

Wed, 05/16/2012 - 00:18 | Link to Comment Hulk
Hulk's picture

BTFD may be months away, until then, you just be averaging down. Me thinks this is going to be an ugly summer...

Wed, 05/16/2012 - 00:24 | Link to Comment WonderDawg
WonderDawg's picture

Ugly, unless you're playing it to the downside. I'm trying to pick my spots. Holding some CRM puts at the moment, for earnings on Thursday. Swinging for the fence. Might strike out, but if I hit a home run, it'll be a grand slam, baby! As far as PMs, I agree, average down, but slowly. Hold some dry powder because if things get crashy, there'll be a true firesale on PMs.

Wed, 05/16/2012 - 00:14 | Link to Comment Apostate2
Apostate2's picture

Pocket mothers all squeeze through small brothel door same time

Tue, 05/15/2012 - 23:15 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Don't worry about Japan!  You Americans!  You have such big PENIS!!

 

http://www.southparkstudios.com/clips/151505/town-concerned

Tue, 05/15/2012 - 23:45 | Link to Comment HungrySeagull
HungrySeagull's picture

Never you mind big penis.

Think Viagra.

Tue, 05/15/2012 - 23:16 | Link to Comment besnook
besnook's picture

japan is soon to become another province of china so what does it matter? of course, the usa will bid the price up with a few military personel but china(and japan) wins in the end.

Tue, 05/15/2012 - 23:47 | Link to Comment HungrySeagull
HungrySeagull's picture

ah ah ah... not just yet.

There is a matter of that little painful splinter known as Taiwan.

Wed, 05/16/2012 - 01:00 | Link to Comment besnook
besnook's picture

soon enough. the greater asian prosperity sphere is coming together. the dream will be realized, not according to the original plan, but still for the benefit of all.

Wed, 05/16/2012 - 00:21 | Link to Comment earleflorida
earleflorida's picture

FWIW Dept:

Japan was in a historical war with China [ http://en.wikipedia.org/wiki/Second_Sino-Japanese_War ] when WWII was moving along before the U.S. got envolved. Previously they had signed a treatise with Germany, et.el [ http://en.wikipedia.org/wiki/Tripartite_Pact ] until Germany turned on Russia and we all know the outcome. [*Pearl  Harbor 12/7/1942]

But what is fascinating is the perpetual hatred that the two [Japan & China] countries have always had for each other. With China behind/ fomenting the Korea North 'Civil War',... Japan was sickened by China's Mao Zedong aggression and was asking the U.S. for Nuclear material /equiptment & [Eisenhower] technical assistance and help. If Japan had it their way today, they'd "Nuke" China in a Hong Kong second [ http://www.dcbureau.org/201204097128/national-security-news-service/unit... ], and not blink an eye, period! This is a very unknown adversarial dilemma, a festering duel, that the world hasn't been paying much attention with all the nonsense [diversions, diversions, diversions] over the ME and Iran which is all but a ruse to fuck the public in a made-up 'War-Premium' for the oligarchy and their personal Oil Cartels making Billions daily from the ruse! Oh, and lest I forget, it was the Chinese that created the Vietnam War!   jmo 

Wed, 05/16/2012 - 01:07 | Link to Comment besnook
besnook's picture

read hatoyama's manifesto to see where japan is headed.

Wed, 05/16/2012 - 16:17 | Link to Comment earleflorida
earleflorida's picture

nice ref. {PDF} thankyou :-))

Ps. Japan does realize they're in a global economy, but, they also realize that their best ally is still the United States. I'm actually amazed at the power-brokers in Japan that answer to no one except their corporate bosses. It parallel's the U.S. Political structure, that we/some still call democracy?

A true optimist with a grand plan is Mr. Hatoyama...

Tue, 05/15/2012 - 23:17 | Link to Comment Apostate2
Apostate2's picture

That's a very superannuated black swan but maybe there is life in the old chook yet...

Tue, 05/15/2012 - 23:23 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

Kyle Bass probably has that hanging on his wall.

Tue, 05/15/2012 - 23:28 | Link to Comment Floordawg
Floordawg's picture

Incredible numbers on those charts and amazing what a printing press can do. First thing comes to mind, Borat's voice...

"WOWEE-WEEWOW!?"

Tue, 05/15/2012 - 23:48 | Link to Comment HungrySeagull
HungrySeagull's picture

Delivering ink at 600 dollars a barrel is a bitch compared to the cost of gasoline even in a war zone.

Tue, 05/15/2012 - 23:27 | Link to Comment Poor Grogman
Poor Grogman's picture

This is the way the ponzi is designed to work.

1. Create lots of debt,

2. Expand the borrowings of government to the max.

3. C/Bs step in to "BTFD" (buy the F'n debt) and keep the game going.

Result

1. Natural order is reversed so that instead of

1People
2. Government
3. Banks

We now have

1. Banks
2. Government
3. People

This is it people welcome to the new world order.

Sad.....

Tue, 05/15/2012 - 23:35 | Link to Comment alagon
alagon's picture

That's right...Natural law as Locke, Hume, and Rothbard talked about....

Tue, 05/15/2012 - 23:47 | Link to Comment pragmatic hobo
pragmatic hobo's picture

what are you talking about? it has always been in the order of banks, government, and slaves, I mean people.

Wed, 05/16/2012 - 00:41 | Link to Comment Poor Grogman
Poor Grogman's picture

Hasn't always been that way at all.
Remember the idea called America.....

If you still don't understand what I am talking about.

I can't help you

Sorry dude.

Wed, 05/16/2012 - 00:45 | Link to Comment Rubbish
Rubbish's picture

They draw their charts differently. There is more distance between vertical lines, so as one topples it doesn't domino the others.

Tue, 05/15/2012 - 23:32 | Link to Comment monopoly
monopoly's picture

What an amazing chart. So what goes to infinity and beyond? Ahhh, got it.

Tue, 05/15/2012 - 23:32 | Link to Comment jomama
jomama's picture

got counterparty risk?

Tue, 05/15/2012 - 23:33 | Link to Comment chump666
chump666's picture

Asia is in big trouble, small coincidences leading to something major, internal (China v's rest of Asia) geopolitical tensions + economic meltdowns + outflows

Tue, 05/15/2012 - 23:40 | Link to Comment Yen Cross
Yen Cross's picture

 Thank you Chump. Well spoken. Catch ya tomorrow, on that short covering rally.  You're a good Man!

Tue, 05/15/2012 - 23:50 | Link to Comment chump666
chump666's picture

Should be a bounce, but, if Greece finally goes, US markets will re-couple for a major sell off.  Sold short pos, now looking for another position.  Still think we are going lower (equities) before a June (Greek elections redux)/July/August market crash.

As for Asia, I would be very concerned.  China is throwing it's military weight around, first with India/Vietnam now the Philippines, I suspect Japan will be next.

That is worrying. 

If the Fed/ECB go nuclear and print...they will print us all to oblivion.  The China/Asian tensions are all about energy or lack of, so if oil goes bid again.  Prepare for war.

Tue, 05/15/2012 - 23:34 | Link to Comment Godisanhftbot
Godisanhftbot's picture

 Maybe China will absorb Japan. Who can tell the difference unless the lighting is very good anyhow.

Tue, 05/15/2012 - 23:36 | Link to Comment Quarky Gluon
Quarky Gluon's picture

They never would have gotten into this jam in the first place if they, along with every other sovereign nation, had just printed fiat money to pay for all their government expenditures.  We here in the US could stop running a deficit starting tomorrow if the treasury took over all money creation and just printed as much as necessary to cover the federal budget.  

Tue, 05/15/2012 - 23:37 | Link to Comment Dapper Dan
Dapper Dan's picture
Beginning is easy - Continuing is hard
Japanese Proverb

 

 

Tue, 05/15/2012 - 23:37 | Link to Comment xtop23
xtop23's picture

Wow, I had all but given up hope on my Japan shorts. 

Might end up paying off having listened to Bass after all.

Tue, 05/15/2012 - 23:37 | Link to Comment MayerRothschild
MayerRothschild's picture

This just seems apporitate to me for some reason

Mr. Roboto

Tue, 05/15/2012 - 23:44 | Link to Comment i_call_you_my_base
i_call_you_my_base's picture

Anyone see this Bloomberg article from last week?

http://www.bloomberg.com/news/2012-05-09/elderly-at-record-spurs-japan-stores-chase-1-4-trillion.html

Unicharm Corp. (8113)’s sales of adult diapers in Japan exceeded those for babies for the first time last year.

Bloomberg mentioned nothing about how crazy that is, only that it's a good business opportunity!:

“It could be a model case,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. “They are remodeling stores and changing products portfolios. It may take time, but their efforts will be successful not only in Japan, but also overseas.”

Japan will be saved by adult diaper manufacturing!

Tue, 05/15/2012 - 23:46 | Link to Comment Tom Green Swedish
Tom Green Swedish's picture

The more I watch the financial industry the more I think its like some kind of entertainment.  Its like who can make the biggest loses and look like the biggest fool is the biggest celebrity.  Its like a reality show but really stupid.

 

Time for the gloom doom and boom report by Marc Faber:

 

http://www.youtube.com/watch?v=e59rh3EV4gk

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