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'japan Sliding Into Dodecatuple Dip Recession'

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http://www.zerohedge.com/article/japan-sliding-dodecatuple-dip-recession

'A long time ago in a galaxy far, far away, fundamentals used to matter. In this place tonight's news that Japan is slipping back into its +/-20th sequential recession would have resulted in a plunge in the Nikkei, and a lot of overtime work for the Japanese plunge protection team, which unlike its US equivalent, does not hide in the shadows, and is well-known to intervene when equities plummet. Earlier, Japan announced that not only did its jobless rate increase more than the expected 5%, hitting 5.1%, once again openly starting on its one way trek to the record 5.6% achieved at the trough of the crisis, but deflation also picked up, hitting -1.5% in April (and where prices did not fall, they were supported by government subsidies), and completing the trifecta was that household spending came in at -0.7%, after estimates called for a 2.5% increase after the 4.4% prior reading. Instead, in our current galaxy, the Nikkei was up 1.5% because China said that it would not sell its European bonds, an act which would have brought the euro to parity and slashed the value of China's trillions in foreign reserves by about 10% overnight (also, the fact that a dollar-strapped BOJ demanded $200 million in FX swaps from the Fed was certainly also not lost on the market). Gee, it is truly shocking they did not confirm they are selling their German bond holdings. After all, even PIMCO is liquidating its European exposure: we would contend that China is not all that much dumber than Bill Gross.

Japan's deflationary collapse has been blamed on the BOJ for not having taken the same abrupt and dramatic QE measures that the Fed has rushed into. On one hand, that is true, and is the reason why instead of burning out on a short-term sugar high, Japan has now seen twenty years of economic decline. On the other hand, it means that America will never hit Japan's sad record of 2 lost decades, as the Fed has already shot 5 out of 6 bullets in its gun. As Bob Janjuah pointed out earlier today, there is just one bullet left. And we have a feeling before all is said and down, instead of shooting the ever angrier bear, which is getting closer by the minute, Bernanke may decide to play Russian roulette instead.'

the evidence for deflation is there for all to see.it's mroe a case of whether we get it over with quickly or we draw it out like the Japs.

the reality is that the CB's have spunked their QE on a monumentally piss poor recovery.There is no way we can avoid our fate.

Im actually quite bullish on japan compared to other markets it may well be able to stay above treble figures

Edited by Tamara De Lempicka

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Guest sillybear2

If Japan has suffered two decades of deflation why is the cost of living so utterly crippling?

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If Japan has suffered two decades of deflation why is the cost of living so utterly crippling?

Is it?

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Guest sillybear2

Is it?

Tokyo is about the most expensive city in the world.

because the value of their currency has steadily devalued?coming soon to a country near us.

Indeed, QE'd to death in order to fight some mythical deflation monster.

...says man from 8400 kps internet connection...

Some of us can't just claim it on expenses B'Stard.

Edited by sillybear2

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Tokyo is about the most expensive city in the world.

Do you know what gives then, do they rig their CPI figures as they do in the US?

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Guest sillybear2

Do you know what gives then, do they rig their CPI figures as they do in the US?

CPI is an international measure, I guess they also pull the same tricks with 'owners equivalent rent' by using the asset implosion to drag the index down, along with discounting in the low interest rates on your underwater mortgage and all the hedonics tricks pulled with electronics goods, all in order to make it look like the cost of living is falling whilst reality is just the opposite.

"Despite more than a decade of deflation, Tokyo is still among the most expensive cities in the world, according to a UBS" -- WSJ

Wow, how they've 'suffered' from deflation, if only things were even more expensive everything would be great :rolleyes:

Obviously rich people couldn't care less about the daily cost of living, whether a punnet of strawberries costs ¥1000 or ¥2000, but asset deflation along with the resulting zombie banks = deflationary hell in their minds.

Edited by sillybear2

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Guest sillybear2

So presumably the price of gold in yen has declined for the last 20 years?

:lol:

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CPI is an international measure, I guess they also pull the same tricks with 'owners equivalent rent' by using the asset implosion to drag the index down, along with discounting in the low interest rates on your underwater mortgage and all the hedonics tricks pulled with electronics goods, all in order to make it look like the cost of living is falling whilst reality is just the opposite.

"Despite more than a decade of deflation, Tokyo is still among the most expensive cities in the world, according to a UBS" -- WSJ

Wow, how they've 'suffered' from deflation, if only things were even more expensive everything would be great :rolleyes:

Obviously rich people couldn't care less about the daily cost of living, whether a punnet of strawberries costs ¥1000 or ¥2000, but asset deflation along with the resulting zombie banks = deflationary hell in their minds.

Thanks for that. I always thought, having never set foot in Japan, that prices were falling over there. I am trying tog et my head around this...

Anyone who has ever paid 1,200 yen ($13) for a cup of coffee would probably not mind a bit more deflation.

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I agree with sillybear2 - Japan is an incredibly expensive place in which to live, Tokyo especially, and if you have a look aroudn Japan the shops are crammed full of people buying the latest gadgets. Buying the latest phone, camera, laptop, etc, is an annual event for many in Japan.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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