• 10 hours Putin Signs “Digital Iron Curtain” Into Law
  • 13 hours Russian Metals Magnate Sues U.S. Over Sanctions
  • 16 hours Tesla Looks To Jump Into Indian Market
  • 18 hours Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 1 day Homeowners Experiment With Risky New Investment Trend
  • 2 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 2 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 2 days Ford CEO Gets Raise After Massive Layoff Round
  • 2 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 3 days Where To Look As Gold Miners Inch Higher
  • 3 days Google Faces Billions In Fines From European Regulators
  • 4 days The Energy Industry Has A Millennial Problem
  • 4 days Russian Banks Scramble For Sanction Loopholes
  • 5 days Gold ETFs Take A Hit After Four-Month Run
  • 5 days European Union Takes Aim At Ten New Tax Havens
  • 6 days Goldman Defends Trillion-Dollar Corporate Buyback Spree
  • 6 days $600 Billion At Risk As Boeing Fallout Continues
  • 6 days Venezuela Has Yet Another Crisis Developing
  • 6 days Wells Fargo Accused Of “Ongoing Lawlessness”
  • 7 days Hollywood Agency Returns $400M Investment To Saudi Wealth Fund
Lending: The Good, Bad, And Ugly

Lending: The Good, Bad, And Ugly

Aristotle said, “The most hated…

The Chatroom Cartel Running Global Bond Markets

The Chatroom Cartel Running Global Bond Markets

Eight major banks have been…

  1. Home
  2. Markets
  3. Other

Abenomics: So Much Effort, So Little Results

Abenomics Recap

Record Japanese stimulus coupled with negative rates yield produced no inflation, a flat stock market, a strengthening Yen, falling exports, and a slowdown in bank lending.


Running Out of Road

Bloomberg reports Never Has BOJ Done So Much for So Little Benefit.

Even after arranging a record stimulus program and reducing a key interest rate to less than zero, the central bank has failed to boost inflation to its goal of 2 percent. Stocks are little changed from where they were in October 2014 when Governor Haruhiko Kuroda expanded his package of asset purchases. Exports are declining. One measure of bank lending is at a 14-year high, though loan growth is slowing compared with a year ago. While most sovereign bond yields have turned negative, corporate borrowing costs are lagging behind.

"Japan might be starting to run out of road a bit on the monetary policy front," said Andrew Colquhoun, the head of sovereign rankings for the region at Fitch in Hong Kong. That "would tend to undercut one of the sources of support that the sovereign ratings have had."


Inflation

Japan CP

"The BOJ is falling short of its 2 percent inflation goal, by measures that include and exclude energy costs. Inflation swaps also show investors expect consumer price increases to hold close to zero for the next decade."


Exports Decline


Nikkei

Nikkei 225


Yen

Japanese Yen

Despite a decline in purchasing power in the Yen from January 2012 until mid-2015, Abenomics has failed to generate much consumer price inflation.

Since then, the Yen has strengthened by 12.65%.


Achieving Inflation is Child's Play

Once again, I present Mish's Sure Fire Proposal to End Japanese Deflation: Negative Sales Taxes, 1% Monthly Tax on Gov't Bonds.


Mish's Four Pronged Proposal to End Japanese Deflation

  1. Negative Sales Taxes
  2. One Percent Tax, Per Month, on Government Bonds
  3. National Tax Free Lottery
  4. Hav-a-Kid

For additional details, please click on the above link.


My Price

My price for this amazing plan is $0. It's free for the taking.

It's truly pathetic when you cannot destroy your own currency despite years of trying.

 

Back to homepage

Leave a comment

Leave a comment