Japanese GDP Deflator Plunges To Multi-Year Low As GDP Comes Below Expectations

Japan just announced its annualized Q1 GDP, which came in at 4.9%, well below the survey consensus of  5.5%. Yet while the country's subpar economic performance was not too surprising, the deflator came in at a massive -3%, indicating that in the second decade after the country first set off to prove that Keynesianism works when public debt is somewhere north of 100% it still have to find success. Our only concern is that Bernanke is all too aware of this data as well, and he will not stop at anything to reflate, even if that means a $5, $15 or $500 trillion Fed balance sheet.

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