{"id":1451,"date":"2014-11-11T15:30:23","date_gmt":"2014-11-11T20:30:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1451"},"modified":"2014-11-11T15:30:23","modified_gmt":"2014-11-11T20:30:23","slug":"abenomics-creates-potential-for-economic-collapse-triggered-by-bond-market-crash-warns-richard-koo-zero-hedge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1451","title":{"rendered":"Abenomics Creates “Potential For Economic Collapse Triggered By Bond Market Crash”, Warns Richard Koo | Zero Hedge"},"content":{"rendered":"

Abenomics Creates “Potential For Economic Collapse Triggered By Bond Market Crash”, Warns Richard Koo | Zero Hedge<\/a>.<\/p>\n

While Richard Koo is an employee of Nomura, or a bank which is among those who stand to benefit the most from the BOJ’s doomed Banzainomics experiment, he has less than kind words to say about this latest and greatest demonstration of sheer desperation by Japan’s Prime Minister, whose tenure may not be all that long – something which perhaps he is not very much against, as Abe is hardly looking forward to being named in the history books as the person who dealt Japan’s economic death blow.<\/p>\n

To wit:<\/p>\n

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When evidence meets faith, it doesn\u2019t stand a chance<\/strong><\/p>\n

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When a year and a half of aggressive quantitative easing failed to produce a recovery in private demand for funds,\u00a0the government should have realized that the answer to the economy\u2019s problems was not in monetary policy and shifted its focus to the second and third arrows of Abenomics<\/strong>.<\/p>\n

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But the reflationists in academia and bureaucracy who are unable to accept thatmonetary policy is powerless in a balance sheet recession\u00a0<\/strong>have basically said that if one pill doesn\u2019t cure the patient, try two, and if two don\u2019t work try four, 16, 256….<\/p>\n

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Most patients would start to question the doctor\u2019s diagnosis before they agreed to swallow 256 pills<\/strong>. But such voices have been erased from Japan\u2019s policy debate.<\/p>\n

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ECB President Mario Draghi quipped in a press conference on 6 November that \u201cwhen evidence meets faith, it doesn\u2019t stand a chance.\u201d\u00a0For those who believe monetary policy is always effective, no amount of evidence that there are times when monetary policy does not work will convin<\/strong><\/span>ce them otherwise.<\/p>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Abenomics Creates “Potential For Economic Collapse Triggered By Bond Market Crash”, Warns Richard Koo | Zero Hedge. While Richard Koo is an employee of Nomura, or a bank which is among those who stand to benefit the most from the BOJ’s doomed Banzainomics experiment, he has less than kind words to say about this latest […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[57,1045,661],"class_list":["post-1451","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-japan","tag-bond-market-crash","tag-qe"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1451"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1451\/revisions"}],"predecessor-version":[{"id":1452,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1451\/revisions\/1452"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}