Japan: Bubble prophet fears new disaster


That is mental, talk about picking up pennies in front of a steamroller! Trees do not grow to the sky. At some point bond yields will go the other way, and anyone trading on the edges of this thing will face wipe-out.


Japan still can’t generate inflation - -> telegraph.co.uk/business/201 … inflation/

A Year in a Vanishing Japanese Town - -> ozy.com/true-story/a-year-in … town/62978


Japanese Policy Failure Means Disaster For Us All - -> mauldineconomics.com/outside … for-us-all


Japan default on Yen denominated debts :laughing:
they print them… duh…

limit on yen “debt” is inflation; i.e. deflation of the currency…
considering currency has strengthened this year that is more balderdash


Milk distribution becomes focus in Japan’s butter shortage - -> asia.nikkei.com/Politics-Economy … r-shortage

Toyota: Japan production to stop for week due to steel shortage - -> businessinsider.com/r-toyota … 016-1?IR=T

Japan’s Tourism Boom Is Generating Demand in Unlikely Places - -> bloomberg.com/news/articles/ … ely-places

French innkeepers share ‘minpaku’ woes with Japan hoteliers - -> japantimes.co.jp/news/2016/0 … hoteliers/

Low wages at the heart of foreign labor shortage woes - -> japantimes.co.jp/news/2016/0 … tage-woes/

Japan’s elderly turn to life of crime to ease cost of living - -> cnbc.com/2016/03/27/japans-e … iving.html

Surge in safe sales, ¥10,000 notes reflects sagging faith in economy - -> japantimes.co.jp/news/2016/0 … h-economy/

Let’s see, the people increasingly can’t afford to buy butter and eggs and the conglomerates can’t buy steel due to a combination of bureaucracy and reduced purchasing power. They can’t keep their money in the bank because they are charged for it and with declining purchasing power of the yen they must store more and more large denomination notes to meet their running costs, but on the flip side their tourist industry is booming (at least until the Japanese bureaucracy stifles it) because foreigners have greater purchasing power and their government has discovered the secret to eternal monetary happiness by having the central bank buy it’s bonds in it’s own currency because “they can’t default”. Meanwhile their companies move production offshore where they can afford to buy raw materials and have to import the expensive finished product to their home market where less Japanese consumers can’t afford to buy (+ new sales tax). (hey, the balance of trade looks good again), so they convert their foreign earnings to Yen and it makes their profits look good on paper so they goose the Nikkei index creating another asset bubble in the process.


Shamelessly stolen from another forum.


BOJ mulling negative rates on lending facilities for banks - Bloomberg - -> uk.reuters.com/article/uk-japan- … KKCN0XJ0E3


The Bank of Japan becomes The Tokyo Whale - -> notayesmanseconomics.wordpress. … kyo-whale/


Bill Gross Says Record-Low Bond Yields ‘Aren’t Worth the Risk’ - -> bloomberg.com/news/articles/ … al-selloff

10-year JGB notches worst losing streak since 2003 - -> next.ft.com/content/2bfdb4e0-d9 … bd257e07c2

BOJ Is Running Out of Room to Buy Bonds Amid Stimulus: Chart - -> bloomberg.com/news/articles/ … ulus-chart

See not a problem they owe it to themselves . . … :laughing:

Rout Sends Every Japanese Company Bond Sold in July Under Water - -> bloomberg.com/news/articles/ … nder-water

Japan Pension Whale’s $52 Billion Loss Tied to Passive Ways - -> bloomberg.com/news/articles/ … ssive-ways

‘I Can’t Rely on the Country’: Why Japan Is Turning to Riskier DIY Pensions - -> fortune.com/2016/07/20/i-cant-re … -pensions/

Japan’s Public Pension Fund to Launch Forum With Major Japanese Companies - -> wsj.com/articles/japans-publ … 1469645337




It doesn’t look to me though, that the proportion in monetary terms compared to the rest of the market has increased.


Japan will be the first country owned by its central bank. Once one entity owns everything there is no more market, no price discovery, no knowledge and no coordination - It’s called socialism.

Mountain Day becomes Japan’s newest public holiday - -> bbc.com/news/world-asia-37030868


They have 16 public holidays a year now!


I’ve often thought the first Monday of every month should be a bank holiday (unless there were holidays in the previous month e.g. Christmas, Patrick’s Day etc.)


Japan to print additional ¥10,000 bills as more people stash their cash at home - -> japantimes.co.jp/news/2016/0 … cash-home/
7 April 2016


Bank of Japan Has an 8.7 Trillion Yen Gap in Balance Sheet - -> bloomberg.com/news/articles/ … et-problem




Hmmm, no; it’s only after the crash that Japan went into deflation and tried everything to get out of it. And as a result prevented total collapse, but also the crash reaching clearing prices. They’ve extended the crash (and the age-related secular decline) to astonishing lengths. Yes, the west have done it, and yes, they’re trapped at the zero bound. The answer for deflation is wage increases. That’s the only sort of inflation that matters. Nobody tries that, preferring the trickle to the 1%…


Along with productivity gains.


You won’t get productivity gains with the move to ‘apps’ :frowning:
o365 is negative productivity compared to previous on-system versions. I reckon productivity peaked about 10 years ago with the perfect balance of hardware speed/software capabilities. The whole AAS thing is wildly oversold and years of business IT departments integrating disparate systems has been thrown away. Permanent business advantage has been outsourced to lowest common denominator apps on a ‘smart’ phone. Rigid Artificial Idiots (nothing more than scripted responses) have replaced flexible people (actually replaced scripted helpdesk responses, and you thought they were bad?).
Still, a few years of this will give the younger generation some scope to fix it and maybe there’ll be a return to permanent jobs.