Bank Of Japan Said To Start Preparing For Losses On Its “Huge” Debt Holdings Once QE Ends

Remember when Japan was going to rule the world? And no I’m not talking about WWII, I’m talking about the late 80s. The Japanese were buying up everything. The world was turning Japanese. Ahem.

That was a long time ago now. Indeed many of our readers don’t remember the 80s Japanese surge because they weren’t even born. Since those heady days Japan has stagnated. It may be looking at significantly worse than stagnation soon. The Land of the Rising Sun,

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Bernanke’s New Helicopter Money Plan——Sheer Destructive Lunacy

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.

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Negative interest rates put the global economy on a razor’s edge

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.

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Japanese Government Cracks Down Hard on the Media Amid Pitiful Economic Performance

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.

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China Central Bank Head at G20 : The Chinese bubble has popped

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 “

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HSBC fears horrible end to Japan’s QE blitz as Abe wins landslide

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.

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Japan Is Dying And We Still Don’t Get It?!

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,

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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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Global Bellwether: Japan’s Social Depression

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.

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