JAPAN

[rffrydr]

Core rate up .5%; 3 in a row:

"Mitsubishi UFJ Securities senior strategist Naomi Hasegawa said remarks this morning by Prime Minister Junichi Koizumi fueled conjecture that the central bank will soon end its present policy.

'[Changes in] consumer prices are coming in above zero and we are seeing signs of getting out of deflation,' Koizumi told a parliamentary committee.

His comments were his most positive yet on recent indications that the economy is winning its battle with falling consumer prices. Previously, Koizumi had insisted that it was too soon to say that the economy was coming out of deflation."


Bonds and stocks were short going in. End-of-day showed resiliency, (complaceny?)

Hey Henry, Devil's advocate: with Japanese debt at a Godzilla-sized 160% GDP on the worlds fastest aging population (and most afraid of foreign workers) do they have any choice BUT to reflate their way out? And politicians want a decade for "reforms."

An end to quantiative easing may be announced at the end of Japanese Fiscal Year--but this could take a long, long time to play out. Markets 1st "verdict."
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Today is the Tomorrow you worried about Yesterday!

[HenryTo]

8.9-magnitude earthquake registered in Northern Japan. Tokyo airport and bullet trains have shut down service.

http://www.bloomberg.com/news/2011-03-11/tokyo-buildings-shaken-by-7-9-earthquake-highest-tsunami-warning-issued.html

[rffrydr]

Japanese stocks: peculiarly attractive

Published: February 22 2011 09:48 | Last updated: February 22 2011 09:48

[rffrydr]

Year of recovery? Hope does not spring eternal in this island power:

http://www.cnbc.com/id/15840232?video=1794730004&play=1
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Today is the Tomorrow you worried about Yesterday!

[HenryTo]

IMF joins the bear party re: Japanese government bonds. And as always, Ron Paul is highly quotable:
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U.S., Japan warned by IMF, rating agencies on debt

(Reuters) - The United States and Japan received sharp warnings from the IMF and ratings agencies on Thursday that they must tackle their huge budget deficits to avoid investors dumping their bonds, which would create a sovereign debt crisis and push up their borrowing costs.

Rating agency Standard & Poor's on Thursday cut Japan's long-term debt rating for the first time since 2002, and a day after a U.S. agency raised its 2011 budget deficit forecast by 40 percent.

In the United States, Moody's Investors Service warned said while the risk to the United States' coveted top triple-A rating was small, it was rising.

The International Monetary Fund had harsh words for both the United States and Japan, saying they urgently need to act to cut their deficits.

As a political battle heated up in Washington over the budget, the U.S. Treasury took steps to prevent the government from hitting a legal limit on its debt. Republicans are demanding spending cuts as the price of their support for raising the $14.294 trillion debt ceiling.

President Barack Obama this week announced a five-year freeze in annual domestic spending, which the White House estimates will save more than $400 billion over the next decade, but an International Monetary Fund official said on Thursday that more is needed.

Carlo Cottarelli, director of the IMF's Fiscal Affairs Department, said Washington must be more specific in detailing plans that go further.

One Republican warned that the United States faced the risk of a currency crisis if it did not get its debt under control. "We're getting closer to that all the time," said Texas Representative Ron Paul, who has long advocated a return to a requirement that the dollar be backed by gold.

In Europe, market pressures have forced many governments to adopt austerity budgets to bring down soaring borrowing costs, and the European Union is now locked in debate over whether a

440 billion euro bailout fund for its members is too small.

[rffrydr]

Turning back now, Chinese visit is kicking up fond memories:

http://www.bloomberg.com/news/2011-01-22/hu-s-u-s-trip-may-augur-japan-style-investment-push-by-chinese-companies.html

As history rhymes and never repeats don't look for a trophy hunt. While hard assets are something the japanese and chinese have in common, I'd expect a more mundane kind of investment. An investment in, dare I say it, US manufacturing

Nothing is obvious.
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Today is the Tomorrow you worried about Yesterday!

[rffrydr]

It's happening:

[HenryTo]

Prices at this sushi chain beat those of California Roll Factory and the sushi take-out place at my local neighborhood corner:

http://www.nytimes.com/2010/12/31/business/global/31sushi.html?pagewanted=1&_r=1&ref=technology

[HenryTo]

How far can the Japanese model sustain itself? No surprise that the Japanese is the leader in robotic technology.
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Japan population shrinks by record in 2010

TOKYO – Japan's population fell by a record amount last year as the number of deaths climbed to an all-time high in the quickly aging country, the government said Saturday.

Japan faces a looming demographic squeeze. Baby boomers are moving toward retirement, with fewer workers and taxpayers to replace them. The Japanese boast among the highest life expectancies in the world but have extremely low birth rates.

Japan logged 1.19 million deaths in 2010 — the biggest number since 1947 when the health ministry's annual records began. The number of births was nearly flat at 1.07 million.

As a result, Japan contracted by 123,000 people, which was the most ever and represents the fourth consecutive year of population decline. The top causes of death were cancer, heart disease and stroke, the ministry said.
Japanese aged 65 and older make up about a quarter of Japan's current population. The government projects that by 2050, that figure will climb to 40 percent.

Like in other advanced countries, young people are waiting to get married and choosing to have fewer children because of careers and lifestyle issues.

Saturday's report showed 706,000 marriages registered last year — the fewest since 1954 and a sign that birth rates are unlikely to jump dramatically anytime soon.

Japan's total population stood at 125.77 million as of October, according to the ministry.

[HenryTo]

Japanese fiscal situation starting to become untenable as its population continues to drop and as boomers retire:

http://search.japantimes.co.jp/cgi-bin/nb20101225a1.html

[diesel]

You would think by now they would learn that they are pushing on a string with monetary policy.... Just send in the clowns I say....

Whatever happened to stock flow consistent macro models?
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All cats are gray in the dark.

[HenryTo]

Economist suggests negative interest rates for Japan:

http://www.bloomberg.com/news/2010-10-18/bank-of-japan-s-big-gun-on-yen-is-negative-interest-rates-smithers-says.html

[rffrydr]

For those who wanna wallow in it, move to japan--and live in a "micro-house":

http://www.nytimes.com/2010/10/17/world/asia/17japan.html?_r=1&hp

Funny study in opposites: china vs. japan, one is the 800lb gorilla and one is the 90lb weakling--yet the economies are the same, if that!
_________________
Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Japan clarifies its currency strategy:

http://www.bloomberg.com/news/2010-10-07/japan-won-t-join-a-currency-devaluation-race-vice-finance-minister-says.html

[rffrydr]

Hard Assets stimulus....watch out, the Japanese never great at timing:

http://ftalphaville.ft.com/blog/2010/10/06/362201/japan-piles-into-resources-but-is-it-an-inflation-hedge/
_________________
Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Bridgewater on the BoJ's purchases: