Summary: The Economic Cycle Research Institute (ECRI), who correctly predicted the slow recovery, explains the slow growth in which the US and Japanese economies are mired, and the fantastic monetary experiment waged by central banks to prevent them slumping into recessions. Appreciate the wonders of our time. The recovery since 2008 has been difficult for … Continue reading ECRI looks at our Great Monetary Experiment: It’s Too Big to Fail
Summary: Japan was the first nation to enter a period of secular stagnation, deflationary tendencies, and fertility collapse. Now Europe and America are following (in our own ways). Decades of extreme monetary and fiscal stimulus have stabilized the economy, but at the cost of falling incomes for many of its people. Since we are on … Continue reading Stratfor: Japan’s leaders are paralyzed as their economy fades
Summary: Japan has remained in economic stagnation for so long we have come to consider that as normal. It's not. Slow decay of a nation eventually ends in reform (as expected in Japan by experts for 2 decades) or regime change. Abenomics aroused excitement as the start of powerful reforms, as Japan's last chance. The … Continue reading What might the failure of Abenomics mean for Japan? Big, unpredictable changes, perhaps with a happy ending.
Summary: I don't believe I've successfully communicated to our readers the extraordinary nature of our times. We too often focus on the details, but ignore this essential aspect of our situation. Since the crash (perhaps starting even before) we've sailed beyond the edges of the known economic "space". We can no longer even see the … Continue reading Look at the economy. Fight the illusion of normality. Feel the weirdness.
Summary: It's difficult to describe the magnitude of the monetary policy experiments now running around the world, most especially in China, USA, and Japan. At the end are links to a dozen posts attempting to do so with words and numbers. Today we do it with pictures. . The monetary stimulus programs running around the … Continue reading The easy way to understand unconventional monetary policy