You think the stock markets are still really “markets?” Ha, ha, ha, ha, and ha.
Uh oh. Here comes the Federal Reserve to “save” us.
(From David Stockman’s Contra Corner)
If you don’t think the current central bank driven economic and financial bubble is going to end badly, recall a crucial historical fact. To wit, the worldwide race of central banks to the zero bound and NIRP and their $10 trillion bond-buying spree during the last seven years was the brain child of Ben S Bernanke.
He’s the one who falsely insisted that Great Depression 2.0 was just around the corner in September 2008.
We are slipping into an economic Twilight Zone. Across the globe, in different countries, the poles are shifting along with banking math. Negative rates of interest are creeping over the planet.
Negative rates will encourage debtors while robbing what is left from savers at an accelerated rate. It is foolishness. It is unwise. Negative rates will extend the malaise (malaise is a nice way of putting it) that the world seems unable to shake even 8 years on from 2008.
Abenomics is failing and appears to be failing at an accelerating pace. Japan is the world’s 3rd largest economy after the US and China.
In the face of failure the politicians are getting testy. They don’t like that the media is calling them out and highlighting the ongoing difficulty. (That’s a kind word.) I suppose the dismissed broadcasters can be thankful however that they aren’t in China where they wouldn’t have been sent home but to the dungeon.
It is no small thing when one of the world’s great stock markets loses 1/20 of its value in a day. It happens though.
Abenomics is failing. The world’s third largest economy is now in recession, yet again. The massive “printing” of yen has not helped as we (and many others) predicted it wouldn’t. The Japanese threw all in and now the country is staring at a stark winter.
See, clear skies and smooth sailing in Asia.
This must mean that everything is cool then right?
We are pretty much obliged to run this one. Of course it has popped. It’s been deflating for months. Really longer than that though the Shanghai Stock Exchange didn’t reflect it for a while. And it’s not like the Chinese pop is over, it’s got plenty more to go. Lots of “fun” is still ahead of us.
People who care about the world economy and world politics should look closely at China. It is a classic case of “
The yen debasement bus rolls on. Has a new tank of gas too.
Oil sends a shudder through the world economy. Japan goes for broke (probably literally) with the Japanese citizenry on board. China fears being sucked into a debasement black hole. Europe clings. We watch.
Japan, you gave us karate, Godzilla, walkmans (remember those?), sushi, Hello Kitty, and cars which didn’t fall apart. Though we fought you bitterly in World War II America came to love you more than any other country in the world with the exception of the United Kingdom (and maybe Australia, Canada doesn’t count). We hate to see you in your current straits. One, because we have a general affinity for the Land of the Rising Sun. But two, because we are riding the same bullet train here in the States,
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.
If you want to see what happens when the Keynesian virus truly takes hold of an economy and a society check out Japan. The once juggernaut of economic power, The Land of the Rising Sun, is now a great example of economic and social zombification as Charles Hugh Smith illustrates below.
It took 1 generation.
This is an important piece. Sometimes The Times runs some very good stuff and this is one of those times. The attached article is absolutely worth a read.
It seems that foreign governments, including Japan, Qatar, and Norway have been buying influence via some of Washington’s most prominent policy institutions including, allegedly, the Brookings Institution.