Again, as pointed out many times, Korea is on a similar trajectory. We are watching to see what happens in Japan in the next few years because Korea may be in about the same position in the not-too-distant future.
From Zero Hedge:
Things are going from worst to worsterer in Japan. Somewhat ironically (given our recent post), this update to the state of play awaiting Mr. Abe is not good. With the Senkaku debacle flaring still in the background, we wonder just how much 'face' the Japanese are willing to lose as their exports fall 6.5% (for the fifth month in a row) dominated by an 11.6% drop 'to' China (which accounted for around 20% of Japanese exports until recently) making it extremely likely the nation is headed for yet another recession. The trade balance missed large to the downside yet again, extending a multi-year trend (and drastically reducing the 'net' exports capital buffer), and so (as USDJPY remains 'strong' despite REER being well below its 1995 peak) we are to believe yet another JPY1tn Koo-nesian fiscal stimulus will do the trick.
http://www.zerohedge.com/news/2012-11-20/meanwhile-land-setting-sun-and-exports
No comments:
Post a Comment