{"id":1772,"date":"2014-11-18T17:26:48","date_gmt":"2014-11-18T22:26:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1772"},"modified":"2014-11-18T17:26:48","modified_gmt":"2014-11-18T22:26:48","slug":"japan-is-dying-and-we-still-dont-get-it-the-automatic-earth","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1772","title":{"rendered":"Japan Is Dying And We Still Don&#8217;t Get It?! &#8211; The Automatic Earth"},"content":{"rendered":"<p><a href=\"http:\/\/www.theautomaticearth.com\/japan-is-dying-and-we-still-dont-get-it\/\">Japan Is Dying And We Still Don&#8217;t Get It?! &#8211; The Automatic Earth<\/a>.<\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 13px; text-align: left; padding: 0px; margin: 0px 0px 1.5em 0px; border: 0px initial initial;\">What is it with us? Don\u2019t we WANT to understand? Japan announced on Monday that its economy is in hopeless trouble and back in recession (as if it was ever out). And what do we see? \u2018Experts\u2019 and reporters clamoring for more stimulus. But if Japan has shown us anything over the past years, and you\u2019re free to pick any number between 2 and 20 years, it\u2019s that the QE-based kind of stimulus doesn\u2019t work. Not for the real economy, that is.<\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 13px; text-align: left; padding: 0px; margin: 0px 0px 1.5em 0px; border: 0px initial initial;\">The land of the setting sun has during that time thrown so much stimulus into its financial system that Krugman-esque calls for even more of the same look even more ludicrous today than they did all along. Abenomics is a depressing failure, just as we knew it would be since it started almost two years ago. It\u2019s not complicated, and it never was.<\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 13px; text-align: left; padding: 0px; margin: 0px 0px 1.5em 0px; border: 0px initial initial;\">Japan\u2019s stimulus has achieved the following: banks get to pretend they\u2019re healthy and stocks rise to heights that are fundamentally disconnected from underlying real values. On the flipside of that, citizens are being increasingly squeezed and \u2018decide\u2019 not to spend (not much of a decision if you have nothing to spend). Since Japan\u2019s \u2018consumer\u2019 spending makes up about 60% of GDP, things can only possibly get worse as time passes. If \u2018consumers\u2019 don\u2019t spend, deflation is the inevitable result \u2013 and that has nothing to do with the much discussed sales tax, it\u2019s been going on for decades -.<\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 13px; text-align: left; padding: 0px; margin: 0px 0px 1.5em 0px; border: 0px initial initial;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan Is Dying And We Still Don&#8217;t Get It?! &#8211; The Automatic Earth. What is it with us? Don\u2019t we WANT to understand? Japan announced on Monday that its economy is in hopeless trouble and back in recession (as if it was ever out). And what do we see? \u2018Experts\u2019 and reporters clamoring for more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","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":[63,452,661,1234],"class_list":["post-1772","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-japan","tag-qe","tag-stimulus"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1772","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=1772"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1772\/revisions"}],"predecessor-version":[{"id":1773,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1772\/revisions\/1773"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}