Just before the FOMC decided to not decide last Thursday, we asked if the scuffle depicted below was Japanese lawmakers’ attempt to act out what they imagined might go on in the Eccles Building during what was billed as the most important Fed decision in recent history:
We went on to note that Japan - which, you're reminded, is the poster child for Keynesian insanity with a debt load that now totals ¥1,057,224,000,000,000 - tried to raise rates at one point, only to reverse course within seven months.
Now that the Fed is allegedly set to hike at some point in the not-entirely-distant future, and now that Japan has completely lost its mind and declared [3] that despite Abenomics' abysmal and demonstrable failure, the economy will somehow expand at a 20% clip going forward, we thought this an oppotune time to demonstrate, with one helpful infographic, why the US can never raise rates. Put simply: the US is second only to Japan on the list of countries with the worst debt to central government revenue ratios.
[4]
Coming soon to Washington:
[5]
