The Abenomics Farce Continues

As data points in the post below indicate, Japan's monetary policy is not working.  As Japan's inflation rises, the ordinary people suffer.  Japan has monetized its debt without revamping its broken system.  What is responsible for the lack of reform which led to Japan's lost decades?  Its oligarchy system.  Japan Inc. which once made Japan's rapid economic growth possible has turned into a liability.

Korea was modeled after Japan.  It's a matter of degree, yet Korea is emulating Japan's strategy.  While 95% of Japan's debt is internally owned, Korea's debt owned by foreign investors has increased.

From Zero Hedge:

It's not been a great evening so far for the leadership in Japan. We are now six months into the greatest monetary policy bluff of all time and thanks to the sound and fury from Abe (and now his henchmen) the JPY has devalued by an impressive 25%. The goal, of course, to target inflation and combat the dreaded deflation - that Abe himself today said "can take a long time." So how are we doing? Not so great it seems. Just as the US went 4-for-4 today in dismal data so Japan is 3.5-for-4 as the much-watched 'inflation' missed expectations once again with a -1% print (that would be deflation) - the worst level since August 2010; Japanese Industrial Production slumped 11% year-over-year, far in excess of the consensus 5.8% drop (biggest miss since Feb 2009) and the biggest collapse (ex-Fukushima) since October 2009; and to top it all off, Japanese unemployment ticked up higher than expectations to 4.3% - equal worst in 7 months. The one saving grace was a PMI above 50 (but driven by an 18-month high print in input costs and accompanied by a drop in backlogs and slump in employment sub-indices - so not exactly bursting with euphoria). Need moar Abenomics...

The Bold Strategy...


The Results...


Of course, living by the Keynesian easy money credo of "If at first you don't succeed, devalue moarer..." we can look forward to more bold easing down the road.

http://www.zerohedge.com/news/2013-03-28/abenomics-farce-continues