Retail Sales Plunge to 4.5 Year Low
On October 1, Japan increased its sales tax to 10 percent from 8 percent. In response, Japan’s Retail Sales Plunge to a Multi-Year Low.
Japan’s retail sales tumbled at their fastest pace in more than four and a half years in October as a sales tax hike prompted consumers to cut spending, raising a red flag over the strength of domestic demand.
Retail sales fell 7.1 percent in October from a year earlier, pulled down by weak demand for big-ticket items such as cars and household appliances as well as clothing, trade ministry data showed on Thursday. The data showed department store sales were hit particularly hard.
The drop marked the biggest since a 9.7 percent fall in March 2015 and was worse than a 4.4 percent decline predicted by economists in a Reuters poll.
Japan Ruling Party Piles Pressure on Government for Big Fiscal Spending
Next, please consider Japan Ruling Party Piles Pressure on Government for Big Fiscal Spending
Japan’s ruling party lawmakers on Wednesday piled pressure on the government to compile a big spending package, increasing the chance fiscal policy could play a bigger role in sustaining a fragile economic recovery with the risk of more debt issuance.
With tax revenues seen undershooting the government’s forecast this year, calls for bigger fiscal spending heighten the chance Japan will issue more bonds and further delay progress in reining in its huge public debt, analysts say.
Bank of Japan Gov. Haruhiko Kuroda Offers Spending Endorsement
The ruling party can increase spending because Bank of Japan Gov. Haruhiko Kuroda offers endorsement of more fiscal spending.
Bank of Japan Gov. Haruhiko Kuroda endorsed on Thursday government plans to compile a fiscal spending package for disaster relief and measures to help the economy stave off heightening global risks.
Kuroda said a mix of fiscal and monetary stimulus measures was a standard way to support the economy, and something the BOJ was already doing by keeping borrowing costs low under its yield curve control (YCC) policy.
“YCC, which intends to keep short- and long-term rates quite low, would make fiscal policy even more effective,” he said. “But our monetary policy will continue to be guided by our major objective, which is to achieve price stability and keep financial stability.”
Ample Room for Cuts
Finally, please note BOJ’s Kuroda Says There’s Ample Room for Further Easing at Present.
Bank of Japan Governor Haruhiko Kuroda said on Friday that the central bank would not hesitate to ease policy further if the momentum towards its price stability target is lost as there’s “ample room” for more easing.
Speaking at parliament’s lower house financial committee, Kuroda also said the BOJ would weigh costs and benefits if the central bank were to deploy additional easing steps.
Japan General Government Gross Debt to GDP
Q&A on Japanese Debt
Japan’s government debt to GDP is approaching 250%. It’s the highest in the developed world and more than double that of the U.S.
Q. How did Japan get there?
A. Fiscal stimulus to defeat deflation, wasting every penny of it.
Synopsis
- Japan wasted money for decades in a foolish attempt to defeat routine price deflation.
- To rein in the debt, Japan hiked taxes.
- Following tax hikes, spending plunged as did tax revenues.
- To stimulate the economy, the central bank lowered interest rates, more and more and more and more.
- When that did not stimulate the economy, the government wasted still more money on still more useless infrastructure projects.
Abenomics
This above scenario is called “Abenomics” in honor of Shinzō Abe, the Prime Minister of Japan since 2012 even though Japan had been wasting money fighting deflation since the 1990s.
Three times Abe hiked taxes to curtail debt only to spend more money each time when the tax hikes killed consumer spending.
And so here we are once again with “ample” room to spend more and cut rates despite rates being negative.
Hope Springs Eternal
This is all happening in hopes of producing inflation.
The BIS did a historical study and found routine deflation was not any problem at all.
“Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive,” stated the study.
It’s asset bubble deflation that is damaging. When asset bubbles burst, debt deflation results.
Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.
For a discussion of the BIS study, please see Historical Perspective on CPI Deflations: How Damaging are They?
Uncertainty Prevails
Abe likes to hike taxes and spend more.
It hasn’t stimulated the economy yet and never will. Yet, uncertainty prevails.
How many more times Abe will try this foolish plan remains a mystery.
Mike “Mish” Shedlock
I do not understand why anyone would buy an investment with a guaranteed negative return. Why not just sit on the cash?
On the other hand, insofar as the bonds are not held by the BOJ, the aging Japanese have socked away 250% of the GDP in savings in an institution that is far safer than privately owned banks to buy some fixed income.
اسعار الحجر الهاشمى بمصر اسعار الحجر الهاشمى فرز اول وتانى
اشكال واجهات عمارات حجر هاشمي هيصم باحدث الديكورات المودرن لعام 2020 عند بناء العمارات وتشطيبها يحتاج الشخص إلى عمل واجهات تجعل للمبنى مظهر مميز؛ لهذا السبب عليك الاعتماد على عمل اشكال واجهات منازل |اشكال واجهات عمارات ، فإن الحجر الهاشمي من أكثر الأنواع التي تستخدم في هذه المهمة والتي سوف تضمن لك الحصول على أفضل النتائج من حيث الصلابة واللون وغيرها من الأمور التي تميز هذا الحجر عن غيره، وسوف نحرص على أن نعرض لكم طريقة تركيب حجر هاشمي هيصم خطوه بخطوه واجهات حذابة من الحجر الهاشمى ومميزات وعيوب حجر هاشمي لواجهات عمارات في مصر، وتعرف على اسعار الحجر الهاشمي واجهات عمارات.
الحجر الهاشمي هيصم هم من أهم أنواع الأحجار الطبيعية الصخرية التي يتم استخراجها من الجبال من خلال ماكينات التقطيع الكبيرة، فنلاحظ أن هذه الماكينات تعمل على تقطيع أنواع الجبال وتقوم بتحويلها إلى كتلة صخرية كبيرة ثم يتم إعادة تقطيع هذه الكتل الضخمة إلى بعض الأجزاء بمقاسات مختلفة ومن هنا يتم استخدام الحجر الهاشمي هيصم ببعض الخامات المختلفة، ويتوفر الحجر الهاشمي بدرجات متنوعة من الألوان ومنها الأحمر والأبيض واللون الكريمي أو الأصفر الجملي، لذلك أصبح استخدام واجهات فلل حجر هاشمي هيصم من أكثر الأمور التي يفضلها العميل، وخلال السطور التالية نقدم لكم طريقة تركيب واجهات حجر هاشمي هيصم في مصر، ومميزات وعيوب واجهات فلل حجر هاشمي هيصم في مصر، وأسعار حجر هاشمي هيصم في مصر.
إن الحجر الهاشمي من أكثر الأحجار المنتشرة والمستخدمة في عمل الواجهات كما أن لها العديد من الاستخدامات الأخرى نظرًا لليونتها فإن هذا الأمر جعل منها واحد من أفضل أنواع الأحجار التي تستخدم في عمل كلًا من الواجهات، والمداخل، والتصميمات المختلفة وغيرها؛ لهذا السبب فإننا سوف نحرص على أن نعرض لكم في الاسطر القادمة أهم الأمور التي يجب أن تدركها حول واجهات منازل حجر هاشمي 80 وسوف نركز فيما يلي على بعض العناوين المختلفة ومنها طريقة تركيب حجر هاشمي 80 واجهات المنازل في مصر، ومميزات وعيوب حجر هاشمي 80 لواجهات المنازل في مصر، وأسعار حجر هاشمي 80 واجهات المنازل في مصر.
اسعار الحجر الهاشمى فى مصر تختلف من كل فتره قرابة حوالى سته اشهر الى سنة يوجد العديد من الانواع التى على اساسها يتم تحديد سعر متر الحجر الهاشمى خامة مصنع فرز اول السوف المصر انواع الحجر الهاشمى تختلف على عده عوامل منها درجة التحمل والمقاومة الرطوبة فى فصل الشاء وايضا كيفية استخراج الحجر الهاشمى فالحجر الهاشمى يختلف اسعاره عن بعض فيوجد سعر متر الحجر الهشمى الهيصم يهتلف عن سعر الحجر الهاشمىالراس وعن الحجر الهاشمى السانت كاترين
للمزيد من الصور
شركة الثقه للمقاولات
كيف يمكنك تحديد سعر متر الحجر الهاشمى فى واجهات الفلل والمنازل ,اسعار البازلت فى مصر
تركيب الحجر الفرعوني لواجهات المنازل والفلل 2020 ,واجهات الحجر الفرعونى فى مصر تركبيها باقل الاسعار
حجر هاشمى,واجهات حجر هاشمى هيصم,حجر هاشمى هيصم,اسعار حجر هاشمى,اسعار حجر هاشمى هيصم,تركيب حجر هاشمى,تركيب حجر هاشمى هيصم,واجهات فلل حجر هاشمى هيصم,انواع الحجر الهاشمى,أشكال الحجر الهاشمى,سعر متر الحجر الهاشمى,واجهات حجر هاشمي,اسعار الحجر الهاشمى فى مصر.واجهات حجر هاشمى مصر,واجهات حجر هاشمى2020.واجهات منازل حجر هاشمى,واجهات عمارات حجر هاشمى,اشكال واجهات حجر هاشمى,احدث واجهات حجر هاشمى,ديكورات حجر هاشمى, سعر متر الحجر الهاشمي في مصر 2020, اسعار تركيب الحجر الهاشمي, اسعار الحجر الهاشمى بمصر, اسعار توريد وتركيب الحجر الهاشمى,اشكال واجهات عمارات حجر هاشمى هيصم, كتالوج صور واجهات بيوت مصرية ريفية , واجهات منازل وفلل بتصميمات حجر هاشمى فخمة
“The BIS did a historical study and found routine deflation was not any problem at all.”
The problem is that we are not in something routine. We have gone from the extreme of the Great Depression to the extreme of WW2, which created the US. as the extreme producer to the world, along with an extreme baby boom. That has now all reversed, with the extreme of China becoming the producer to the world and first world population growth rates shrinking. Things are way out of balance.
They wont be put in balance by these interventions. Distortions result. Distortions that just add complexity.
Like picking a scab.
They will keep doing this until the currency collapses.
When that will be, is the big unknown.
Oh boy! MMT coming to Japan big time: I’m betting someday soon the yen will be toilet paper. The rest of the world will probably follow
I wonder what assets the average Japanese citizen holds against that eventuality?
You mean government that commits to taking ever larger amounts of money out of its economy to fund wasteful spending ultimately depresses economic activity? Who would have thought?
This is an obvious death spiral. (1) Government deficit spending increases to provide stimulus. (2) Taxes must be increased to help pay for excessive spending and debt. (3) Actual tax collections fall due to productive citizens changing their behavior. (4) Taxes need to be increased again. It all ends with a “Splat!”
The US should be heeding this lesson, but it does not appear to be.
Chine should be heeding this lesson more. The U.S., if it can stifle the xenophobes, has ample human resources to keep its economy stable, if not growing.
Stifle the xenophobes? The US has ample human resources to keep its economy stable? What exactly are you saying?
Of course the US wont heed this lesson. Politicians got their fluff jobs and salary to worry about. Personally I think this will all end in a big war but who knows.
Central Banksters love to party with Kuroda … the ultimate “hold my beer” fellow.
All eyes on him as central banks the world over appreciate someone else taking the lead in Krazy. And follow they will … no matter how disappointing the results.
Central Banks will NEVER admit the best thing is to do nothing and allow the much needed clearing. And since all they have is hammer (lower rates & QE), every problem is a nail.
What I don’t understand is when the BOJ buys all the negative interest rate bonds to finance govt debt how is that accounted for? I assume only the BOJ is buying the debt no one in the private sector would lend the govt money and get less back. Isn’t the BOJ technically insolvent when they buy all this garbage negative interest rate bonds and get less back than it paid for them? What happens if they are insolvent or am I missing something?
Japan is in a death-spiral. Any peanut can see that. The clock is ticking.
Barring further increases in madness, they’re actually a lot better off that The West. Simply on account of being 30+ years ahead wrt debt dynamics. The BOJ may be trying their best, but Japan has still managed to have less inflation since the 90s, than pretty much anywhere else. So they’re still comparatively competitive and well priced, compared to Europe and the US.
Japan enjoys the perverse ‘blessing’ of having a declining population and one that saves more as rates go lower, which partially explains why no inflation events (yet). The other plus for them is that they’ve had the US, Europe and China to prop them up economically all this time (Japan being an export-led economy). I would politely suggest that A) the West is does not have a ‘Japan’ future ahead of it and B) a global recession could stick a fork in Japan, bringing as it inevitable would a final, mortal, burst of money-printing.
Here in the EU economical easing zone things start to flash signals that something is very wrong. Talking to another entrepreneur, she told me that she was unable to secure a household repair loan from bank due to her status of being a business woman.
The bank person told her that same would apply if she would co-sign with her husband but that if the husband – who works in public sector – would take the loan himself then later she could sign as a guarantor…
We are talking about a person who has little debt, is not too old and has a regular income and owns her own small business. Seems like private sector entrepreneurs are considered carrying Ebola virus or something.
Same actually happened to me this year asking for a roof repair loan the house and land being as collateral. I had asked a friend to come as guarantor since he has regular significant income. No loan approved. I have been customer of that bank since 1997 and had several loans with them in the past.
This topic was about Japan but the same effects are to be seen everywhere. Interests below zero and still banks are not lending. Perhaps they know something we don’t? I am typical person looking for a loan, not rich, not poor and never had any unpaid dues but somehow that’s not enough in the nowadays environment of easing.
I predict that people just get poorer while trying to pay the interest of these mountains of debt with the income of real economy. Printing virtual yen, dollar or euros is not going to solve anything.
Only get a loan when you can prove you don’t need it if you’re ordinary, like the 70’s. Fear in the banking sector, NPLs stalking the halls. Bad lending crowding out necessary lending
From the sublime to the ridiculous.
What about auto loan sector debt? Anyone with a pulse gets a car loan. Something sounds familiar here. I don’t see the loan market being tight in the US. Housing mortgages are also easy to get with all the govt assistance and insurance schemes to inflate home prices.
Yes, but US banks have strengthened. EU not so, waiting for the first domino to fall but no one sure which of the many dominoes – so cut back on risk, reduce lending. Repo problem may have been down to a European bank that others are bring cautious of.
It all points to a problem being covered up in the hope it sorts itself out.
Sounds about right. I ended up choosing to delay the renovations til Spring when I can pay for them in cash. All I can say that the economy is not doing great despite what the central bankers are trying to convince us.
They try to reign in debt, leading to more debt.
The delivery of the Best Custom College Paper Writers Service is prompt as our Professional Custom College Papers Writers and College Papers Writing Help are credible and reputable.
link to superiorwriters247.com