Sayonara Abenomics

by Pebblewriter, Pebblewriter.com Those who have followed this blog for any length of time know about our focus on the Japanese economy and the yen. I presented this chart in December, which shows the impact on stocks of the last three USDJPY reversals off a trend line (or top of a channel, depending on how …

Stratfor: The Asian Status Quo

by Robert D. Kaplan and Matt Gerken Arguably the greatest book on political realism in the 20th century was University of Chicago Professor Hans J. Morgenthau’s Politics Among Nations: The Struggle for Power and Peace, published in 1948. In that seminal work, Morgenthau defines the status quo as “the maintenance of the distribution of power that …

Will debt derail Abenomics?

It seems to me that one of the automatic, if not always intended, consequences of Abenomics is to force up Japan’s current account surplus, and in fact to force it up substantially. This will have to do at least in part with deciding how to manage the country’s enormous government debt burden, which easily exceeds 200% of the country’s GDP.

The Real Experiment That Is Being Carried Out In Japan

by Edward Hugh, Euro Watch Editor’s note: This was written nearly four weeks ago and posted at Edward.Hugh.Blog 24 May 2013 The future never resembles the past – as we well know. But, generally speaking, our imagination and our knowledge are too weak to tell us what particular changes to expect. We do not know …

The Mother of All Painted-In Corners

by John Mauldin, Thoughts from the Frontline Alice laughed. She said, “There’s no use trying – one can’t believe impossible things.” The queen said, “I daresay you haven’t had much practice. When I was younger, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things …