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While on the surface the US economy has been chugging along from GDP-crashing “snow in the winter” to GDP-cratering “warmer|cooler than expected weather in the spring|summer|fall“, with bouts of GDP-boosting inventory accumulation inbetween, in recent months two very disturbing trends about that all important dynamo behind the economy, the US consumer, have emerged.

On one hand we wrote three weeks ago that a “shocking” 77 million, or one third, of Americans face debt collectiors: a statistic which crushes any suggestion that US household credit is substantially improving based on trends in 30, 60, or 90-day delinquency, as it means that the real pain is not at the near-end of the default/delinquency timetable, but the far end, which incidentally has just as dire an impact on one’s credit score as a plain vanilla default (and explains why none other than Fair Issac has jumped in to “adjust” its credit methodology to artificially boost FICO scores of these millions of Americans).

On the other hand, we have been closely following the ongoing deterioration of the car subprime loan bubble: something that both Bloomberg and the Fed have both also been paying close attention to recently, yet a bubble which nobody wants to burst, because as we wrote several days ago, it is none other than the subprime car loan bubble that allowed car production to surge the most last month since Obama’s Cash for Clunkers capital misallocation program, in the process lifting overall manufacturing and Industrial Production, and thus GDP.

Earlier today Experian released its latest, Q2, metrics that tie these two very worrying trends together, namely the trend in delinquencies, defaults and repossessions.

As NBC summarizes: “The repo man is getting very busy as a growing number of car and truck owners are struggling to make their monthly auto loan payments. Experian, which analyses millions of auto loans, said Wednesday that the percentage of those loans that were delinquent or ended up in default with the vehicle being repossessed surged in the second quarter of this year.”

Hyperbole? Hardly. In fact, the auto loan subprime bubble may be the latest to burst (after student loans) as the rate of car repossessions jumped 70.2 percent in the second quarter, with much of that increase coming from finance companies not run by automakers, banks or credit unions. The good news: the percentage of auto loans that end in default is just 0.62% of all auto loans. However, as everyone but the Fed knows, what matters is the flow, not the stock, and the direction and acceleration in defaults simply means that the maximum saturation point has been reached and going forward lenders will experience ever greater losses, which in turn will limit their willingness to offer subprime loans to US consumers desperate to find a house (because clearly one doesn’t need to home when one can sleep in their Chevy Tahoe).

Experian also reported that the 30-day delinquency rate was up 0.2 percent and the 60-day rate rose 7 percent in the quarter. “We’re starting to see a slight uptick in the number of consumers struggling to make their automotive payments on time; however, we have to keep in mind that these percentages are still extremely low,” said Melinda Zabritski, senior director of automotive finance for Experian Automotive.

A chart of the Y/Y change in 60-day delinquency rates as of Q1:

Zabritski added via CNBC that “The number of delinquencies and repossessions rising is what we would expect as the auto industry sells more vehicles,” “But this slight uptick is one to keep an eye on.” The surge in delinquencies and repossessions is being driven primarily by borrowers with subprime and deep subprime credit scores.

The main reason to keep an eye on this “slight uptick” is that the underlying notional of total auto loan balances just hit a new all time high: in the second quarter climbed 11.7 percent to an all-time high of $839 billion, according to Experian. It doesn’t take much of a deterioration in payment terms and credit quality before bad loans surge when the underlying debt is hitting record notionals quarter after quarter.

Some data: the average charge-off was $8,149 in the second quarter up $932 compared to the same period of 2013, and rapidly rising.

Of course, it wouldn’t be a CNBC report if it didn’t end on a positive note:

Zabritski knows many people are worried the industry is creating a financial storm that will end badly, but she says subprime sales are still far below normal.

 

“The growth in subprime auto loans looks dramatic because it was so restricted in the last few years,” she said. “But this is not mismanaged, rapid growth. We are still well below levels we saw during the recession.”

Because somehow one can compare a period in which the Fed has a $4.4 trillion in balance sheet leverage with a period in which… it doesn’t? Good to know then that at least consumer subprime lending is not as bad as it was then, and instead all of the Fed’s proceeds have simply made their way into the bubble of a stock market.

Finally, for the curious, here are some charts from the most recent, Q1, Experian presentation on the matter. We will update these once the latest slides are unveiled by the credit company.

The average credit score on top leased models:

 

The average loan vs lease payment for the top 10 most popular car models.

 

The top New loan lenders:

 

And the top Used loan lenders:

 

But the one reason we know the subprime auto loan bubble has burst and is about to lead to another round of devastation around the nation is one simple statement: “The New York Fed dove into lending data, and its economists found that the bubble fears may be misplaced.” In other words, it is “contained.”

Hm… where have we heard that before?

http://www.zerohedge.com/news/2014-08-20/car-repos-soar-70-auto-subprime-bubble-pops-its-contained-promises-fed

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Everbuying.com
Woodrow Tracy “Woody” Harrelson (born July 23, 1961) is an American actor and activist. His breakout role came in the television sitcom Cheers as bartender Woody Boyd. Some notable film characters include basketball hustler Billy Hoyle in White Men Can’t Jump, a crippled bowler in Kingpin, serial killer Mickey Knox in Natural Born Killers, magazine publisher Larry Flynt in The People vs. Larry Flynt, country singer Dusty in A Prairie Home Companion, bounty hunter Carson Wells in No Country for Old Men, zombie killer Tallahassee in Zombieland, blind piano player/meat salesman Ezra Turner in Seven Pounds, conspiracy nut Charlie Frost in 2012, a delusional man who believes he is a superhero named Defendor in Defendor, Cpt. Tony Stone in The Messenger, Haymitch Abernathy in The Hunger Games, and Merritt McKinney in Now You See Me. For The People vs. Larry Flynt and The Messenger, Harrelson earned Academy Award nominations for Best Actor and Best Supporting Actor, respectively.[3] He is currently a co-star in the 2014 HBO crime drama True Detective, along with Matthew McConaughey.

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Ferguson is not just about systemic racism — it’s about class warfare and how America’s poor are held back, says Kareem Abdul-Jabbar

You probably have heard of the Kent State shootings: on May 4, 1970, the Ohio National Guard opened fire on student protesters at Kent State University. During those 13 seconds of gunfire, four students were killed and nine were wounded, one of whom was permanently paralyzed. The shock and outcry resulted in a nationwide strike of 4 million students that closed more than 450 campuses. Five days after the shooting, 100,000 protestors gathered in Washington, D.C. And the nation’s youth was energetically mobilized to end the Vietnam War, racism, sexism, and mindless faith in the political establishment.

You probably haven’t heard of the Jackson State shootings.

On May 14th, 10 days after Kent State ignited the nation, at the predominantly black Jackson State University in Mississippi, police killed two black students (one a high school senior, the other the father of an 18-month-old baby) with shotguns and wounded twelve others.

There was no national outcry. The nation was not mobilized to do anything. That heartless leviathan we call History swallowed that event whole, erasing it from the national memory.

And, unless we want the Ferguson atrocity to also be swallowed and become nothing more than an intestinal irritant to history, we have to address the situation not just as another act of systemic racism, but as what else it is: class warfare.

More@ http://time.com/3132635/ferguson-coming-race-war-class-warfare/

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Quantitative easing will cease come October, unless Yellen and Wall Street can create a new “crisis” to cure with more money printing. By every valuation measure used over the last 100 years, stocks are overvalued by at least 50%. By historical measures, home prices are overvalued by at least 30%. Ten year Treasuries are yielding 2.4%, while true inflation is north of 5%. With real interest rates deep in negative territory, the bond market is even more overvalued than stocks or houses. These simultaneous bubbles have been created by the Federal Reserve in a desperate attempt to keep this debt laden ship afloat. Their solution to a ship listing from too much debt was to load it down with trillions more in debt. The ship is taking on water rapidly.

We had a choice. We could have bitten the bullet in 2008 and accepted the consequences of decades of decadence, frivolity, materialism, delusion and debt accumulation. A steep sharp depression which would have purged the system of debt and punishment of those who created the disaster would have ensued. The masses would have suffered, but the rich and powerful bankers would have suffered the most. Today, the economy would be revived, saving and investing would be generating needed capital for expansion, and banks would be doing what they are supposed to do – lending money to businesses and individuals. Instead, the Wall Street bankers won the battle and continue to pillage and loot the national wealth while impoverishing the masses.

The arrogance, hubris and contempt for morality displayed by the ruling class is breathtaking to behold. They think they are untouchable and impervious to norms followed by the rest of society. They may have won the opening battle, but will lose the war. Discontent among the masses grows by the day. The critical thinking citizens are growing restless and angry. They are beginning to grasp the true enemy. The system has been captured by a few malevolent men. When the stock, bond and housing bubbles all implode simultaneously, all hell will break loose in this country. It will make Ferguson, Missouri look like a walk in the park. I wonder if the occupants of the Eccles building in Washington DC will get out alive.

The Story @ http://www.zerohedge.com/news/2014-08-19/your-recovery-and-your-recovery-without-drugs

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As many have observed since Obama launched his own personal Iraq war, there is something rather farcical about the latest US intervention in the middile east, namely that US weapons are being used to destroy US weapons, captured by and in possession of ISIS jihadists. As Reuters summarizes the situation, rather poetically, “Islamic State’s  captured an enormous amount of U.S. weaponry, originally intended for the rebuilt Iraqi Army. You know — the one that collapsed in terror in front of the Islamic State, back when they were just ISIL? The ones who dropped their uniforms, and rifles and ran away?They left behind the bigger equipment, too, including M1 Abrams tanks (about $6 million each), 52 M198 Howitzer cannons ($527,337), and MRAPs (about $1 million) similar to the ones in use in Ferguson.”

In other words US taxpayers are now paying for military missions, in which US taxpayer paid-for warplans and missiles are used to blow up other US taxpayer paid-for tanks, artillery, MRAPs, and various other weapons of death.

Here is a closer look at the method behind the Keynesian madness from Reuters:

U.S. warplanes are flying sorties, at a cost somewhere between $22,000 to 30,000 per hour for the F-16s, to drop bombs that cost at least $20,000 each, to destroy this captured equipment.

 

That means if an F-16 were to take off from Incirclik Air Force Base in Turkey and fly two hours to Erbil, Iraq, and successfully drop both of its bombs on one target each, it costs the United States somewhere between $84,000 to $104,000 for the sortie and destroys a minimum of $1 million and a maximum of $12 million in U.S.-made equipment.

Lest the US appears alone in this silliness, Reuters is quick to remind readers that the very same situation can be encountered several hundred miles north, in the proxy civil war being waged in East Ukraine:

The Russians and Ukrainians are also facing off with tanks and guns and bombs and planes and uniforms all made in the same factories. They were the same country a mere 23 years ago. And even after they weren’t any more, they maintained close military ties until very recently.

 

Before Russia decided it couldn’t stand losing its friend in Kiev, Viktor Yanukovich, Russian President Vladimir Putin was happy to keep most of his navy in what was then Ukrainian territory: Crimea.

 

I guess that’s the thing about weapons. Once you make them, you never know who’s going to end up pointing them at whom.

You do know one thing, though: the only real beneficiary is the US military-industrial complex which built the weapons being used for both sides, and which are now being put into “accelerated obsolescence”, meaning an upgrade cycle is imminent as one or both sides are eager to restock. And who provides the funding for such “restocking”? Why the same banks that the US DOJ is “punshing” with vicious wristslaps of million dollar fines here, and multi-million dollar settlements there such as HSBC and JPM, thereby reducing the total profit on funding global warfare by “money-laundering” institutions to only tens of billions.

Rinse. Repeat.

For more on how the cycle of war works when all other conventional means of boosting GDP or generating bank profits when Net Interest Margins are record low, please watch the film the International, which summarizes all of the above in a tidy package.

http://www.zerohedge.com/news/2014-08-19/how-much-does-it-cost-us-blow-american-weapons

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(Ryan Sharrow)  Maryland shed 9,000 jobs in July, pushing the state’s unemployment rate over 6 percent for the first time since December.

Maryland was among 30 states to post unemployment rate increases from June, according to preliminary data released Monday by the U.S. Bureau of Labor Statistics.

The state’s unemployment rate in July rose to 6.1 percent, up from 5.8 percent a month before.

 

During July, government jobs in the state decreased by 5,500, while education and health services positions declined by 5,400. Professional and business services jobs fell by 2,000.

Some industries posted gains during the month. Construction jobs grew by 1,400 and manufacturing jobs rose by 400. Trade, transportation and utilities positions increased by 1,000, while financial activities jobs grew by 1,200.

As a whole, 2,610,200 people were on payrolls across Maryland in July, down from 2,619,200.

The number of people unemployed ticked up from 180,200 in June to 190,200 in July.

Despite July’s decline, Maryland has posted over-the-month job gains in four out of the seven months in 2014. Compared with July 2013, the state’s total jobs are up by 16,300 and the private sector has gained 18,700 jobs.

Maryland’s unemployment rate remains slightly better than the 6.2 percent U.S. average.

http://rallyagainstomalley.com/maryland-loses-9000-jobs-july/

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As many have heard by now, the leaders of the so-called BRICS nations – Brazil, India, China, Russia and South Africa – used the occasion of the 6th BRICS Summit in Brasilia, Brazil to announce the creation of the long-awaited BRICS Development Bank.

Formally the “New Development Bank,” it will be based in Shanghai and capitalized with an initial $10 billion in cash ($2 billion from each of the five founding members) and $40 billion in guarantees, to be built up to a total of $100 billion.

Immediately, the press began touting the new bank as a potential rival to the current IMF / World Bank system of infrastructure development and poverty reduction in the third world. “BRICS Development Bank Could Challenge World Bank and IMF” touts US News & World Report. “BRICS Ink $50 Billion Lender in World Bank, IMF Challenge” asserts Bloomberg. The World Bank, for its part, is downplaying the rivalry, with World Bank President Jim Young Kim openly welcoming the bank at a recent meeting with Indian Prime Minister Narendra Modi. “The only competition we have is with poverty,” he told reporters at the meeting.

But all of this talk about a potential rival to the IMF and World Bank have exposed the general public’s ignorance about what exactly these institutions are and what they do. While most are familiar with the IMF and its predatory lending practices (and those who aren’t are encouraged to acquaint themselves with the “IMF riot” strategy that was developed in the third world and is now being imported to Europe), the World Bank is less scrutinized and less well understood. What is it, what does it do, and why is it important for the BRICS to challenge its hegemony in the development and poverty reduction arenas?

For the answer to that, we’ll need to examine the World Bank’s history, both the official history that it touts to the outside world and the real history of its part in plundering the developing world that it is supposedly there to help.

more with video@ http://www.globalresearch.ca/what-the-world-bank-actually-does/5396476

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Looters


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“The role of the President of the United States is to support the decisions that are made by the people of Israel.”          Ann Lewis, sister of former Congressman Barney Frank

The idea that the best America could achieve in Iraq would be to divide the country into Kurdish, Sunni and Shi’ite sectors is not really new. It was an old idea in 1982 when Ze’ev Schiff, the military correspondent of Ha’aretz, first suggested it. (Ha’aretz 6/2/1982). It was also mentioned by Oded Yinon in that same year in A Strategy For Israel in the Nineteen Eighties.

Prior to that on June 7, 1981 Israel bombed an Iraqi nuclear project at Osirak. Iraq had purchased an Osiris class nuclear reactor from France in 1976. The Israelis waited until the Iraqis had spent a lot of money and resources before destroying it with a preemptive strike. This coincided with the Israeli election cycle. Three weeks after Osirak, Menachem Begin trounced Shimon Peres at the polls because the latter did not understand the Israeli voters’ desire to bomb Arabs. That is provided no Israelis die.

Harvard physicist Richard Wilson after the attack concluded that the facility was not suited for production of weapons-grade plutonium.

On June 8, 1967 The Israelis killed 34 Americans on the USS Liberty. A BBC press release for the documentary Dead in the Water said that President Johnson, who had been told by the Israelis that Egypt had done it, sent jets from a carrier to attack Egypt with nuclear weapons. The American embassy in Cairo did receive a message saying that the US was going to bomb Cairo. The US avoided nuclear war because the Liberty survivors were able to radio that they had been attacked by Israel. The planes were recalled.

The Israelis have always been willing to fight to the last American.

read the rest@ http://vidrebel.wordpress.com/2014/08/17/israels-gift-the-american-quagmires-in-iraq-and-afghanistan/

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We are only as free as we believe we are. We are in denial, we don’t see the signs that are staring directly at us, keeping our minds turned off and busy with all the mundane affairs of daily life. If you would like to know the truth and wake up, it’s too late, removing your blindfolds and pulling your head out of the sand will only show that reality is already here and very clear.

There are approximately 600 FEMA Camp prison sites around the country (and more literally popping up overnight). They are manned, but yet do not contain prisoners. What is going to be the nationwide panic to kick-off point to put these facilities into operation?

FEMA camps are a restricted area and surrounded by full-time guards, surrounded by miles of fences with the top razor points all directed inward. There is a railroad track that runs into the perimeter of this fence in all Camps. The loading docks also hold several railroad cars which have been manufactured in Oregon and outfitted with shackles.

Most FEMA Camps could easily fit 100,000 people.

FEMA Camps usually are in remote areas or have large mounds of dirt surrounding the central area so the area is not visible from the road. There are white vans as well as Police cars constantly patrolling the several mile perimeter of the areas, and will came out and greet you with a friendly wave if you come close enough to actually view the camp and follow you until you leave.

We just don’t care enough to find out the real truth, and settle for the hand-fed stories that come our way over the major media sources television, radio, newspaper, and magazines. The time is fast approaching when we will be the ones asking “What happened to our freedom? To our free speech? To our right to protect ourselves and our family? To think as an individual? To express ourselves in whatever way we wish?”

You don’t think it could happen to you? Obviously those rounded up and killed in Germany didn’t think it could happen to them either. How could decent people have witnessed such atrocities and still said nothing? Why are we doing the same here? What happened to this country of ours? Where did we go wrong? How could we let it happen again…

 

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How Come


Graph-587x381

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Christie’s lawyers bill N.J. taxpayers $6.52 million for Bridgegate so far

16 Aug 2014 New Jersey taxpayers have been billed $6.52 million so far this year by Gov. Chris Christie’s private attorneys dealing with the aftermath of the George Washington Bridge scandal, according to invoices released today by acting state Attorney General John Hoffman. Lawyers at Gibson Dunn & Crutcher billed $3.26 million in March and April, the invoices show. They also billed $3.26 million in January and February, according to previous invoices. At $650 an hour, the firm’s rate is a steep discount, it says. With ongoing state and federal investigations into the massive traffic jam at the foot of the world’s busiest bridge last year, Gibson Dunn and other law firms may still be billing for work beyond April.

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‘More than £20,000 has been stolen from four passengers aboard the doomed MH370 flight.

Five months after the Malaysia Airlines flight went missing, mysterious withdrawals totaling 111,000 RM (£20,916) have been recorded, reports claim.

A bank in Kuala Lumpur, Malaysia, reported the apparent discrepancies in their accounts on July 18, before lodging a police complaint, Assistant Commissioner to the crime investigation department Izany Abdul Ghany revealed.’

Read more: Mystery as more than £20,000 in cash is withdrawn from the bank accounts of four passengers who went down with doomed MH370 jet

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With a series of air strikes beginning Friday and continuing through the weekend, the United States has gone to war again in Iraq. This new imperialist military adventure has been launched in defiance of overwhelming popular opposition and without a shred of legal or constitutional authority.

The decision to launch a new war was made by a handful of strategists of US imperialist policy within the military/intelligence apparatus, in league with the corporate and financial elite. It was made behind the backs of the American people, who have absolutely no say in the policies, including going to war, that impact their lives.

President Obama’s Thursday night announcement authorizing the launching of air strikes and other actions against the Islamic State in Iraq and Syria (ISIS) came just one day after Anthony Cordesman of the Center for Strategic and International Studies published an analysis calling for an escalation of US military operations in Iraq. Cordesman and his Washington DC think tank occupy a prominent place within the network of intelligence and military strategists who determine US foreign policy.

Cordesman and his like are involved in a permanent conspiracy against the wishes and interests of the broad mass of the American people, in which the president serves as executor and front-man. Their decisions to launch wars and subvert targeted foreign governments are dutifully approved by the leaders of both big business parties in Congress. The corporate-controlled media is assigned the task of dispensing propaganda and disinformation in support of militarism and war.

Opinion polls show that 71 percent of the American population regards the 2003-2011 Iraq War with hostility. But what the vast majority of the American people think and feel has no bearing on the policies and decisions of the key actors in Washington.

There is no longer even the formality of public hearings, debate or a congressional vote. No explanation is offered as to how and why a country that had no Al Qaeda presence until the 2003 invasion, supposedly carried out to fight Al Qaeda terrorism, has been largely overrun by an Al Qaeda offshoot. There is no explanation for the terrible squandering of Iraqi lives, with over a million killed, and American lives, with tens of thousands killed and wounded, or the waste of trillions of dollars to finance the slaughter.

The politicians and media are silent on the role of the CIA in promoting and aiding ISIS and similar Al Qaeda-linked forces and using them as proxy fighters in the US wars for regime-change in Libya and Syria.

Obama’s speech announcing the decision on Iraq was a demonstration of contempt for the views of the American people. He went on national television at 9:30 p.m. on a Thursday night, with no advance notice. The timing was determined in part by the need to begin the bombing before he left Saturday morning for his three-week holiday at a millionaire’s estate on Martha’s Vineyard.

Obama made only the most perfunctory arguments on behalf of the resumption of air strikes. Only the most uninformed and naïve can seriously believe that the US government is moved by concern for the fate of innocent civilians—particularly after the month-long spectacle of Israel incinerating the people of Gaza with bombs and missiles supplied by the United States.

The president’s other professed concern, the “lives of American citizens” at risk at the US consulate in Erbil and the embassy in Baghdad, is a formula for unlimited military aggression. The US government has facilities in every major city in the world. In the case of local military clashes, the normal practice is for such outposts to be evacuated, not defended by force. To do otherwise would mean American military intervention in every armed conflict on the planet.

Military officials told McClatchy News Service, “There is probably some gray area” in the new US war in Iraq, indicating that the aims go far beyond the “limited” intervention described by Obama Thursday night. They noted that the most recent “limited” mission undertaken by the Obama administration, in Libya, ended in the overthrow and killing of the country’s longtime ruler Muammar Gaddafi.

Obama admitted in his speech that renewing military operations in Iraq was deeply unpopular, particularly among those who voted for him in 2008 as a professed opponent of the war launched by President George W. Bush. He repeated a worthless pledge not to send combat troops, and then argued, “America has been able to make the world a more secure and prosperous place.” This absurd claim applies least of all to Iraq, a country largely destroyed as a functioning society by three decades of US bombing, economic blockade and military occupation.

The White House indicated it would send Congress an official notice under the War Powers Resolution that combat operations have begun in Iraq. But Obama aides said no congressional authorization was required because Obama had legal authority to order the use of force to protect American troops in Iraq—the troops he sent to Iraq less than two months ago to serve as a trip wire to justify further US military action.

Earlier this year, White House aides testified before Congress that the president as commander-in-chief had the power to order US military action anywhere in the world, including the invasion of a country, without any congressional authorization. The renewed bombing in Iraq represents an assertion of this untrammeled and quasi-dictatorial power.

Obama declared Saturday that the intervention in Iraq would go on for months, if not longer. It thus represents an open-ended commitment of the military and financial resources of the US government. Tens of billions of dollars will be thrown into the furnace of war to secure the interests of American imperialism in the vast oil resources of the region.

Who will pay the price? The Iraqi people, through death and devastation, and the American people, who will be told, once again, that there is “no money” for jobs, pay raises, pensions or other social benefits.

The renewed military intervention in Iraq is only one component in a far broader imperialist agenda. Obama’s so-called “pivot” to Asia does not mean shifting the focus of American imperialism from the oil-rich Middle East to a confrontation with China. It means adding the Far East to the Middle East, Central Asia, Ukraine, Libya and countless other areas where US imperialism is preparing to carry out aggression.

The continued control of a cabal of CIA, Pentagon and think tank conspirators, operating in conjunction with the American financial oligarchy, over US political and economic affairs poses a mortal danger to the future of all humanity.

http://www.globalresearch.ca/iraq-and-the-war-cabal-in-washington/5395505

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Compared to the 3.6% drop in GDP when Japan last hiked its consumption tax in 1997, today’s Q2 GDP collapse of 6.8% annualized is an utter disaster (even if it is slightly better than the expected -7.0% expectations thanks to a surge in the deflator). Inventory additions added 1.0% growth. Consumer Spending collapsed 5.2% QoQ – the most on record. Of course, in the traditional of Keynesian hockey-sticks, this XX% collapse in Q2 is expected to surge back to a 2.5% growth figure in Q3 and lead Japan to the holy grail once more.. only it didn’t quite work out that way last time for Japan. Simply put this is the worst posible outcome for bulls, small beat not enopugh to rejuice QQE. As a gentle reminder of just what happened in 1997 – the last time Japan hiked taxes – we provide the eerily analog chart below…

 

Japanese GDP growth was almost twice as bad as the last time Jap[an hiked its taxes…

 

As Consumer Spending collapsed…

 

Here come the hockey-sticks…

 

*  *  *

Let’s hope the last 10 months was just coincidentally 90% correlated to 1997!!

 

And remember – they were quantitatively easing then too!

http://www.zerohedge.com/news/2014-08-12/japanese-gdp-plunges-68-consumer-spending-collapses-most-record

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