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, just a little further down the track.
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.
Indeed. Europe is pretty much in depression. So is Japan. (But so what’s new?) And by the way deflation is not necessarily a bad thing. We had mild price deflation through the most prosperous part of American history between the Civil War and the Fist World War. Things should naturally trend toward being less expensive as innovation increases, delivery streamlined, and competition increases.- Just had to get that in.
Scalise discusses a number of things in the attached interview, including the Keystone Pipeline, the minimum wage, and “bipartisanship” (fear bipartisanship). But the most important nugget is that it looks like Congress will force a Fed audit onto Obama’s desk and he will have to sign it or veto it.*
From Paul Singer’s letter to investors,
As a young broker an older quite successful broker told me the same thing. He also said that there was no reason to watch CNBC after 9:30 (the opening market bell) because anything of value for the day which actually found its way onto TV happened before the markets got rolling.
I have found both bits of advice to be right.
This is a great video. Peter Thiel of Paypal fame (he was also the first investor in Facebook, among other things) speaks of the “slow impoverishment” of the United States through inflation and regulation.
He is dead on.
And then the obvious question is – “Where do the central bankers get all this money?”
Only a few people think about that, and half of the people thinking about it don’t care that this “money” comes from nowhere. All they care about is the next quarter, the next day, the next tick, whatever helps them through their withdrawal.
Ah yes, all the hokus pokus is less magic and more smoke and mirrors. Some of us have said this for a long time. But in the wake of Japan falling back into recession, Europe’s continued depression, China’s slowing, and the ongoing troubles in the United States one gets the sense that on some level the grand poobahs of central banking are just tired. The act can only go on for so long. Sooner or later it has to end. Really the Bank of International Settlements, the central bank of central banks turned on the lights earlier this year.
There is distortion and malinvestment throughout the world economy. It’s everywhere. From Japan to Europe to China to South America to the USA and beyond the economy is misfiring thanks to the massive monetary experiments of the world’s central banks of the past 6 years. (And even before that.)