Friday, June 6, 2014

American Seniors Take Note: The Hot Pokers Are Coming

By Chris Rossini

Abenomics (for all the new kids) is the current "monetary policy" (read: massive money creation) being forced on people living in Japan.

Back in 2013, Keynesian idea-pusher Joe Weisenthal said this about Abenomics:
What's going on in Japan is inevitably going to be one of the greatest economics experiments in history…No matter what happens, this will be a great experiment.
We're all just lab rats, being poked and prodded by the central bankers. That's all. No need to question any of this.

Here's gold-hater Joe again back in 2013:
If Abenomics is to work — and there are signs that it is — it works by stoking inflation expectations so that people domestically spend rather than hoard cash.
Anyone with even a basic understanding of supply & demand, knows that this whole experiment is nothing but a prescription for disaster. But hey, as long as the mad scientists can get away with it, they're going to continue their "experiments".

Here's a Bloomberg headline from today: "Abenomics Spurs Most Misery Since ’81 as Senior Scrimps"


How could this be?

The Bloomberg story reads:
Mieko Tatsunami finds Prime Minister Shinzo Abe’s drive to reflate Japan’s economy hard to digest.
“The price of everything we eat on a daily basis is going up,” Tatsunami, 70, a retired kimono dresser, said while shopping in Tokyo’s Sugamo area. “I’m making do by halving the amount of meat I serve and adding more vegetables.”

Tatsunami’s concerns stem from the price of food soaring at the fastest pace in 23 years after April’s sales-tax increase. Rising prices helped push the nation’s misery index to the highest level since 1981, while wages adjusted for inflation fell the most in more than four years.
American seniors take note. The hot pokers are coming.

Follow Chris Rossini on Twitter


  1. “What I actually asked him was, “Were you aware of the comments by the former Bundesbank Vice President and former ECB (European Central Bank) board member, J├╝rgen Stark, where he suggested that the entire financial system is ‘pure fiction’ and that it was vulnerable to a collapse because of all this infinite money that’s been created?” I went on to ask, “Had policymakers at the highest level discussed a change of the monetary order when you were in charge of the Greek political system?”

    He (Papandreou) was very thoughtful about this. He said to me, “Yes, beyond austerity, beyond reforms, there had been deep conversations about how to change the monetary order.” I asked, “Did this include a gold standard?” What he told me was, “It was about exploring a basket of currencies that could involve an asset like that (gold).”

  2. Prices going up as a result of central bankers inflating the supply of money. Who could have seen that coming?

    1. Richard Cantillon in 1700's

      Well, guess he didn't know about central bankers...

  3. Increasing the number of pieces of paper in an economy, creating economic growth since.... never.

    1. Consumer Credit Surges By $26.8 Billion While 37.2% Of Americans NOT Participating In The Labor Force

      As you can see, The Fed’s massive balance sheet expansion has worked to stimulate consumer borrowing, at least for autos and student loans. Not so much for mortgage lending.

      Also notice that the personal savings rate declined in the last month to 62.8% along with M2 Money Velocity.

      This is a mighty strange economic recovery.

  4. If Abenomics is to work — and there are signs that it is — it works by stoking inflation expectations so that people domestically spend rather than hoard cash.

    Ha! "Hoarding cash." I used to work with a couple -- the female half accused her hubby of "hoarding money." I told her that I called that "saving," not "hoarding."