U
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Japan has funny money problems too.
They need to re-read Herman Kahn's classic "Japanese Superstate."
They need to think back to what it took for them to rise out of the ashes of total economic destruction. They need to remember how they became the Japanese superstate, the economic miracle of the world. They need to re-visit the "ruthless efficiency" with which they destroyed inefficient enterprise in their economy. They need to remember what it was like when their economy free and unencumbered by crony capitalism, central planning, and mega-regulation...as a matter of fact, so do we.
In regard to deflation, here's how Ken Courtis sized it up in the WSJ:
"Should inflation rise substantially, as is Tokyo’s declared objective, interest rates would surely follow. The problem here is that debt service already swallows a quarter of Japan’s annual budget — and government debt is set to hit 250% of GDP by the end of next year … As the average cost of government funding begins adjusting upward to account for quintupled interest rates, debt service, like a giant python, would swallow virtually the entire budget. What’s more, with 2.5% interest rates on public-sector debt of 250% of GDP, Japan would have to grow nominal GDP by 6.25% per year simply to keep its debt level from increasing. In real terms (adjusting for 2% inflation), real annual growth would have to be 4.25%. Real growth of 4.25% is conceivable in the abstract, but will not occur on a sustained basis for Japan during our lifetimes."
Continuing on:
"Moving from mild deflation to sharply higher inflation will expose Japan to risks of vast financial turmoil. Yet it is to this very risk that Tokyo is now opening the door. Given the size of its economy, the scale of its debt and how tightly its financial system is interwoven with world markets, Tokyo’s strategy holds frightening implications for us all."
Nikkei Plunges 6.4%; Re-Enters Bear Market
US economy growing at 2.5%, even accounting for a 1% drag due to a shrinking government. 3.5% looks pretty good.
so Mr Genius
you are CONTRA DICK TING the FED who said there is NO DRAG?
where do you see 2.5%.....ObamaSTOOGE
I report, you decide
Got nothing to do with whoever is president. The president is impotent... irrelevant... hamstrung...
When one door closes for one business, another door opens for another business. It's the circle of life.
How much has the DOW lost over the last month or so?
69 points.
Why do you ask?
Obligatory kick to your scrotum: How much has your gold lost over the last month or so?
OFT EVIL WILL SHALL EVIL MAR: ObamaCare Doing What Term-Limits Movement Couldn’t. “Dozens of lawmakers and aides are so afraid that their health insurance premiums will skyrocket next year thanks to Obamacare that they are thinking about retiring early or just quitting.”
OFT EVIL WILL SHALL EVIL MAR: ObamaCare Doing What Term-Limits Movement Couldn’t. “Dozens of lawmakers and aides are so afraid that their health insurance premiums will skyrocket next year thanks to Obamacare that they are thinking about retiring early or just quitting.”
That's just because of the stupid Grassley amendment.
Good!