Peter Pan Is Dead – Japanese Economy Stalls For 6th Time In 6 Years
With 3 of the top 4 forecasters already suggesting Japanese GDP growth would be worse than the median estimate of -0.2% growth, fairy-tales were all they had left… Nearly a year ago, Bank of Japan governor Haruhiko Kuroda described the unlikely inspiration behind Japan’s unprecedented monetary stimulus: Peter Pan.
I trust that many of you are familiar with the story of Peter Pan, in which it says, ‘the moment you doubt whether you can fly, you cease forever to be able to do it’.Yes, what we need is a positive attitude and conviction. Indeed, each time central banks have been confronted with a wide range of problems, they have overcome the problems by conceiving new solutions.
And now, Pan is dead… this is the 6th negative GDP growth period since 2010… printing a 0.4% QoQ drop against the -0.2% growth expectation…
This is the biggest SAAR GDP drop (down 1.4%) since Q2 2014 – right before Kuroda unleashed QQE2 once The Fed had left the money-printing business.
And in case anyone wanted it made any clearer just what an utter farce Abenomics has been…
But it gets much worse…
Private Consumption tumbled more than expected…
- *JAPAN 4Q PRIVATE CONSUMPTION FELL 0.8% Q/Q
The biggest drop since Q2 2014.
Of course – if you are an “enabler” or “central planner” this is great news – just a little more NIRP and just a little more QQE and everything will be fine… what a joke!
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