Japan Update

It seems that the BoJ’s massive increase in QE is turning out to be an epic failure. Tonight industrial production printed a devastating 3.3% month-over-month fall as household spending shrank for the second month in a row. Naturally the Nikkei is soaring, as traders are expecting the poor data to generate even more money-printing – figuring that, when something doesn’t work, politicians will do more of it seems like a pretty good bet.

In the real world, this is a death rattle for the Japanese economy. Crisis looms as the “Hail Mary” last-ditch efforts to re-kindle economic growth by monetary policy are failing.

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