Japan’s core machinery orders were expected to post a modest -2.6% drop. Instead they had a worse collapse than anything seen in the aftermath of the Fukushima disaster, plunging by a stunning 14.8% . And the kick in the groin cherry on top was the current account surplus plunged by 62.6%: consensus forecast: -14.5%. The Japanese economy has once again ground to a halt, only this time it has no earthquake or nuclear explosion to blame. This time it is the entire world’s fault, where demand has collapsed proportionately. As a reminder the BOJ expanded its QE yet again on April 27. Must be time for another QE because this time will certainly be different after more than 30 years of failures. It is time for those brilliant central planners Ph.D’s to do engage in more of the same insanity that Einstein warned about decades ago. And incidentally this is not a joke: on Thursday the BOJ is expected to ease yet again. As a reminder, the BOJ already buys ETFs, Corporate Bonds, and REITs. What’s left: gold?
From my article back in March --
* Equity Markets do a dead-cat bounce on leading edge of inflationary bubble – many investors dive back into equities – week after 4th of July
* Real commodity shortages begin – July
* Massive inflation plus shortages/rationing of fuel, food, etc. cause large scale unrest in first world – mid-July onwards
http://ncrenegade.com/editorial/for-your-pre-war-consideration-a-peek-into-the-twilight-zone/