Abenomics in BIG Trouble

From Zerohedge:

Up until now, Japan's six month experiment with Abenomics has resulted in consecutive months of record trade deficits, soaring energy costs, rising staples prices and a jump in bond volatility and yields so dramatic it led to consecutive halts in the Treasury market and the bond market window slamming shut for corporate credits. It has not resulted in a jump in economic output, in capital spending, and an increase in wages: the three key things needed for a sustainable and viable recovery (despite projections that 6-12 months in the future all shall be well, and the BOJ hiking its economic assessment almost on a daily basis).

Read the rest: Time For Abe To Start Worrying About His Approval Rating?

Proof Again Japan IS (Has?) Collapsing - Bank of Japan Posts ¥233 Billion Loss - Red Ink on Balance Sheet Hits ¥156 Trillion!

Update below

Hate to say I'm right... Well, actually, no. I am happy to say that I was right when I wrote, "Japan is Collapsing."

Today over at Zerohedge they posted an article that is just jaw dropping. Please refer to: Bank of Japan Posts Whopping ¥233 Billion Loss As Its Soaring Balance Sheet Hits Record ¥156 Trillion

But... but... a central bank can never lose money. Bzzzz, wrong. As it just so happens, the world's most tragicomic farce of a central bank, and one which is about to officially lost its (faux) "independence" and become a branch of the Japanese government if the up and coming PM Abe has his way, the Bank of Japan, just reported that in the quarter ended September 30, the Japanese central bank reported an operating loss of ¥183.4 billion, and a net loss of ¥232.9 billion. As a comparison, the loss in the same period in 2011 was "only" 91 billion. This is a harbinger of the total collapse that is the utterly meaningless capital tranche of all central banks will go through before the terminal phase of the global Keynesian experiment is finally completed.  But in the meantime, enjoy this chart of the Bank of Japan's balance sheet returning back to a record ¥156... trillion.

Read the rest at Zerohedge 

But, but (again as some illiterates think) the 0.0007874% of the foreign public living in Japan whose corporations pay for their children's schooling are part of the problem, right? Laughable.

Update: Incredibly, there will still be some who think that private industry or foreigners are "partially" to blame for Japan's woes (polite snickering, here please) instead of government meddling in the economy. To them, may I present this also from Zerohedge: The Cost Of Kidding Yourself

"...As horrific as these results are (USA), they’re better than Japan’s, whose “lost decade” proved only to be prologue for its “lost-er decade.”  Japan’s share of the world economy fell more than 35% from 2001 to 2011 (literally worse than Zimbabwe) and has now shriveled 54% from its peak.  But Japan’s real collapse did not coincide with the bursting of its stock and real estate bubbles in 1990 and 1991 respectively.  The decline actually began in 1995 when policymakers allowed government debt to exceed 90% of GDP (a milestone the U.S. quietly passed in 2010)…

The more they “fixed” it, the more it broke.  17 years later, the only thing Japan has proved is that smart Japanese economists are about as real as Godzilla.  Time and time again, the country has chosen collapse over admitting failure. On November 19, 2012, Bloomberg reported, “The Japanese government will spend 1 trillion yen ($12.3B) on a second round of fiscal stimulus as it tries to revive an economy at risk of sliding into recession.”  It would be funny if it wasn’t so tragic.

……

To say that Japan is still growing (at least in terms of Yen), but everyone else is growing much, much faster in terms of Yen distorts the reality that  Japan is undeniably shrinking relative to the world (no matter what currency is used). 

Idiot Japanese Politicians and Video as to What to do About Them

Hate to sound like a broken record, but here is more information that the government and Bank of Japan are going to repeat past mistakes and throw public money down the toilet again by buying bonds.

I've written before about this idiocy.

As Albert Einstein said, "The definition of insanity is to repeat an action yet expect a different result every time."

Breitbart reports:

The Bank of Japan is considering additional government bond purchases by the end of this year as part of a "comprehensive monetary easing policy" it adopted in early October, sources familiar with the matter said Friday.

The possible launch of additional bond purchases will be taken up at the central bank's policy board meeting next Thursday, the sources said.

On May 5, the BOJ Policy Board decided to buy 3.5 trillion yen in long-term government bonds and short-term government securities over a one-year period in order to prop up economic activity by steering one- to two-year interest rates lower.

The purchase plan will be implemented aside from the BOJ's annual purchase of 21.6 trillion yen worth of government bonds.

The plan is part of a fund the BOJ decided to establish in the amount of 5 trillion yen to buy assets which also include commercial paper, exchange-trade funds and real investment trusts.

The BOJ, which will buy ETFs and REITs for the first time, is studying purchases through trust banks, the sources said. Subject to government approval, the purchase of them is likely to begin after the additional acquisition of government bonds.

Here is a video that I've found that shows what my choice is as to what to do about these idiot politicians who keep repeating the same mistakes over and over. Watch the video and see if you agree.



Come to think of it. I reckon this is an excellent solution to any big government tax and spend politician.