On Sunday, July 21st, in the wee hours of the election day in Japan, before polls opened, I wrote in: My Serious Commentary on Today's Japan Elections (And Some Hot Babes!):
Today there is a big political election going on in Japan (look for the Nikkei 225 to start dropping after today's election is over!)
Several local stock brokers and the like blasted me about how great "Abenomics" is, etc... They also took umbrage at the utter idea that the Bank of Japan and the Japanese government would collude to manipulate stock prices...
Heavens! The government and the central bank colluding to manipulate the economy? I'm shocked! Shocked, I tell you!
I just wonder what comic books these people have been reading these last 25 years? Of course, the government in power wouldn't manipulate the economy for their advantage prior to an election, would they?
That would be unfair!
The results a week after the election? Well, like I said, look for the drop and, here it is: I think a 3.78% drop in a week is a pretty poor performance. Don't believe me. You be the judge....
The fact of the matter is that Abenomics is doing all sorts of cosmetic things to make the economy look better, But the main and goal of creating a trade surplus in order to turbo-charge the real economy is a complete and total disaster.
Exports indeed increased 7.4% in June, unfortunately at the same time, imports jumped 11.8%, and the balance of trade took a 180 degree about-face from surplus in June 2012 to a deficit of ¥180 billion ($1.8 billion). The data doesn't lie: http://www.customs.go.jp/toukei/shinbun/trade-st_e/2013/2013064e.pdf
The chickens are coming home to roost.
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