• 17 hours The Gold Rally Has Finally Run Out Of Steam
  • 19 hours Citibank Analyst Predicts $300k Bitcoin By End Of 2021
  • 4 days Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 4 days 14 Million People Will Lose Unemployment Benefits On December 31st
  • 6 days Why 12 Million American Millionaires Isn’t Good News
  • 7 days Big Oil Is Paying The Price For Investing In Renewables
  • 8 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 9 days Did Amazon Just Democratize Prescription Drugs?
  • 10 days The Private Space Race Just Got Very Real
  • 12 days Short Sellers Are Willing Big In This Turbulent Market
  • 13 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 14 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 15 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 16 days Black Friday Could Be Retailers’ Only Hope
  • 17 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 18 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 20 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 21 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
  • 22 days Will The San Francisco Wealth Tax Spark An Exodus Of The Rich?
  • 23 days The Fin-Tech IPO Of The Century Just Got Crushed
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  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