Did QE fail again in Japan? (Or do we just need a little more? Again.)

See, everything’s cool.

It has failed. It has failed for over 2 decades now.

But I attach an interesting debate featuring Peter Boockvar (in the Abenomics is a disaster camp) and David Zervos (in the Abenomics is proof that Keynesian huja buja works camp). They are diametrically opposed and it is fun to watch.

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Central Bank Nastiness, Japan Swoons, Nikkei Down 6.4% Last Night

There is a chill moving through markets right now. The great central bank experiment of the last 5 years (the acute version) is misfiring again. As they say—you can’t get something for nothing, and the experiment which has failed the lower and middle classes of the Western world is now failing the monied classes. At least at this moment and in Japan. The markets which were feeling pretty good about themselves (for the most part, though Japan has had significant volatility recently) aren’t feeling so good.

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Retail Sales Drop Most in 9 Mos., Art Cashin Feels a Deflationary Wind. (Video)

Yesterday we talked about inflationary pressures in stocks and in housing. But the core of the world economy continues to struggle. We are printing like crazy here and in Japan, and equity markets, and to a very limited extent some housing markets, have trended up. But retail sales are trending down. Gold is trending down. Silver is trending down. Europe continues to trend down. China? Well it depends on the day. Things are pretty weird right now. And North Korea is throwing a nuclear tipped fit.

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Addiction: Bank of Japan to pump $1.4 trillion into economy in unprecedented stimulus

Just one more hit. That will make everything better. Just…one…more…hit……….

Not only is the Bank of Japan going to buy huge amounts of government bonds, but it’s also going to buy stocks, ETFs, and real estate investment trusts.

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Japan struggles- ‘Abenomics’ Is Going to Fail: Mr. Yen

Printing money and broad fiscal stimulus isn’t going to work because of deep structural issues within the Japanese economy. Specifically the country’s population keeps getting older while the economy is also becoming more and more integrated with China’s. Deflationary winds are gale force and steady.

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