sangetsu03's past comments

  • -6

    sangetsu03

    Now Europe is following Japan and previously the US and will try to pump capital into the economy buy selling it cheaply to big players in the hope that some of it might trickle down and jump-start broader demand. Yet all they are really doing is creating another asset bubble (reflected by rising stock indexes) and only the top 1% will derive any benefit. Wages have been stagnant or decreasing for the past decade or more and supply-side economics will not change that.

    Agreed, but luckily I am part of the one percent. However, I know that if the lower classes were to do better, and make more, I would too. Most people seem to think that the top income earners get their money by exploiting the lower classes. The opposite is true. For myself, most of my customers are working class people, and as their wages have decreased, or they have lost their jobs, my own income has decreased. When they do better, I do better, and the same is true in all forms of business.

    The money will not trickle down, it hasn't done so in America or Japan, it will not do so in Europe either. Companies know that the boon from this added liquidity is ephemerial, and that the paper value it adds to their balance sheets has less substance than the ink used to print the numbers. This being the case, they dare not spend this "money", because it's value will certainly vanish should another "adjustment" occur in the markets, or Greece leaves the Eurozone, or any other of a hundred things should harm confidence in the markets.

    As the billionaire Warren Buffet said, "There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."

    This is nonsense, there is no real "class warfare". The different classes get along remarkably well when left alone together. Class warfare rhetoric is used by politicians to create a sense of disparity and inequality in order to fool the more numerous poor to vote for them. The reality is simple, you can make as much money as you want, you just need to go out and do it. But many people are afraid of risk, or are averse to the thought and effort it takes to make money. These people prefer to blame their ill fortune on anyone but themselves, and the rich, being few in number, and having no voice other than their money, are an easy target. People love to hear that they are not responsible for their own problems, even when they know deep inside that they are. Politicians love such people, as they are easily fooled and controled. One need only look at what is happening right now in our world's economies to see the results of this nonsense.

    So, the politicians in Europe, like politicians everywhere, are seeing that payday is coming. Not payday for themselves, but for the cost of generations of policies they have created to buy votes with. They have borrowed and borrowed to buy these votes, and though they have taxed to the point tbat they have driven businesses out of their countries, and robbed the people of a higher standard of living, it has not been enough. So now we see the last card being played. This last card is a Joker, and in tha past it has been played only by the most corrupt and inefficient third-world economies. This last card is simply governments printing money to pay bills. That we have come to such a situation shows that our governments have done an abysmally poor job of managing themselves, and that they have disregarded the trust that we gave them. So now, people will see the value of their wages, savings, and other assets robbed by the very governments who were entrusted to protect these things. I wonder why people aren't out rioting in the streets.

    Posted in: Bank of Japan's Kuroda praises 'big decision' by ECB

  • 22

    sangetsu03

    It is fairly obvious that no money was paid-I wonder how much the life of a Japanese is worth? It seems it is not worth what Isis was demanding.....

    And what if Abe paid the $200 million? What then? Then Japanese citizens would be kidnapped right and left, to be ransomed for as much money as their captors could get. Paying the ransom would have made Japanese travelers less safe. Abe knows this quite clearly, paying the ransom is probably the only option which could not be considered, it would be fantastically foolish.

    These two men went to Syria of their own free will. They read the travel advisories issued by their own government which recommended that travelers not go. The reporter, Gotoh, stated quite clearly on video that he would take personal responsibility for his own actions if anything were to happen to him. The other was a mentally-unstable buffoon, whom Abe and Japan have more or less ignored, even after knowing he had been abducted some months ago. If you're gonna be dumb, then you gotta be tough.

    Posted in: Abe says video claiming one hostage killed likely authentic

  • -1

    sangetsu03

    A couple of friends bought family homes in Tokyo recently. They are more than pleased with their minuscule interest rates on their mortgages, provided by the loose money policy.

    Beyond stupidity...

    Since interest rates are now so low, banks can't earn money on interest or government bonds, and must now focus on derivatives and riskier deals. The over-priced stock market is way over-leveraged. Hence we have a fragile, balloon-like economy where company profits on sales tepid at best, and whose only good figures are their stock prices, which are over-inflated by low-interest money borrowed by companies to buy back their own stock.

    I am in the mood to read some more stupidity, looking forward to your next post.

    Posted in: BOJ sees growth rebounding in coming year

  • -2

    sangetsu03

    That's cherry picking. The economy was growing before the consumption tax, due to the consumption tax.

    Spot-on. If it were not for the increased consumption in anticipation to the hike, there would have been no growth worth mentioning.

    There is broad consensus that's Japan recession was triggered by the consumption tax hike

    You mean there is no chance that the recession might have been caused by the fact that there are some hundreds of thousands fewer Japanese consumers every year? More than half of what Japanese companies made is not exported, it is domestically consumed. When there are fewer consumers in the domestic economy, sales decrease. When sales decrease, so do employment, wages, and tax revenues. As long as Japan's companies are dependent on domestic sales, they will continue to earn less as the population falls. And as more and more of the export market is supplied by China, Korea, Vietnam, etc, there is little chance that Japan can increase sales and earnings in exports.

    Japan is simply not competitive. People are not competitive, business is not competitive, everything is stagnant and in decay. The government can tax, spend, and stimulate all it likes, it is not going to help. It is the people who need to wake up, shake off their chains, and make their lives and country a better place. They need to think and work for themselves, and realize that there are far better ways to live than to be a lifetime employed wage-slave for a "famous company". They need to realize that they need to work for their own success, not someone else's, and that by being successful as they can, they can do far more to help their fellow people and the national economy than the government is capable of doing. Somehow the masters have become the servants, people need to wake up and realize that their lives are their own, that companies and businesses answer to them, and that the government is supposed to serve them, not take care of them. Anyone with half a brain can provide their own employment, food, medical care, and pension, and do it for less than what they think.

    Posted in: BOJ sees growth rebounding in coming year

  • -2

    sangetsu03

    Lower crude prices are just filling the coffers of the corporations that import the oil as the prices at the pump haven't changed a wink.

    Welcome to Japan. When the yen gained 40-odd percent against the dollar and euro, imported goods from America and Europe didn't go down a wink.

    IF it werent for "loose money" and other stimulus policies, the 2008 disaster would still be with us. Like Greece, which was forced into the opposite policy direction: austerity. Boy that worked well, didnt it? YOu might have noticed that now the Europeans, having watched the QE experience in the US and Japan, have decided to follow suit with "loose money."

    Nonsense, I would argue that the opposite has happened, and that loose money policies have not at all helped ordinary people, many of whom are still unemployed, and most of whom have seen wages stagnate or decrease. Almost all of the benefit of loose money policies has gone to the stock market, and to the bonuses of CEO's and executives. Japan is in recession, Europe is hovering on the edge of recession, Switzerland has cut their financial ties with the Euro with the expectation of monetary easing by the ECB. Only America is showing any improvement, and that is purely, 100% related to the decrease in oil prices, and not due to America's QE or stimulus programs.

    you cant mix stimulus with austerity

    What "austerity"? The last there years have seen three consecutive spending increases. Can you name any program which has seen a reduction in spending?

    The government couldn't stimulate itself in a Bangkok brothel, let alone stimulate the economy. It is neither the government's right nor responsibility to manage or stimulate the economy in any way. All they have to do to cause growth is to stop interfering. Our national economies are not governments' responsibility, these economies belong to the people. We know from generations of experience that centrally-planned economies fail. They always have, they always will. We are watching such failures occur before our eyes right now.

    Posted in: BOJ sees growth rebounding in coming year

  • 0

    sangetsu03

    Anyone with a pea pod of a brain could look at the spiral-down wage effect caused by the creation of a global labour pool created when deregulation set capital free, the deindustrialization shift to lower paying service sector work, the dampening on purchasing from the demographic storm front and the impact of a higher consumption tax and conclude that demand-pull inflation was never going to happen.

    And this is a good thing for the rest of the world, which for generations has had no jobs, no money, and no opportunity. Your belief that companies should keep their assets in the countries where they do business is both selfish, and foolish. Success in all things, be it life, business, or whatever, is the result of hard work and competition. If my home country thinks that I should invest my money there instead of abroad, then they will have to compete with other countries to keep my money. They will have to take only a fair share, and provide a fair amount of services in exchange. If they can't, or won't, then I will invest somewhere else. That I have this option will do much to keep my home country from becoming too big for it's britches, though many, particularly Japan, have long passed that stage.

    If Japan weren't taking 35% of my profits off the top, as well as charging me personal income tax, residency tax, consumption tax upon my rent, supplies, and other overhead, not to mention sundry other taxes and fees, then perhaps I could lower my prices somewhat. If I lowered my prices, more people could afford my goods and services. If more people could afford my goods and services, then I would have to produce more goods, and hire more people to perform services. But such isn't the case, and I, like many other business people, spend the greater part of my income on tax and other bureaucracy-related costs.

    Posted in: BOJ faces crunch time as oil slump threatens inflation target

  • -2

    sangetsu03

    My last white car was a 1970 Challenger R/T, an identical twin of the car from the old "Vanishing Point" movie. I sold this car (regrettably), and bought a black 1971 Plymouth 'cuda, which, ironically enough, was used in the movie "Phantasm II". I have no favorite color, I have owned a black Mustang, a red GTO, a green Jeep, a gold Suburban, a purple Roadrunner, the only color I haven't yet had has been pink.

    Posted in: What the color of your car says about you

  • 1

    sangetsu03

    Don't let the evidence hit you in the head. The trillions of yen in dead money being held by Japanese corps shows they have no interest in rewarding people for the "value" they provide.

    Companies do not hold money unless they have no other option. Companies do not spend even a single yen unless they expect to get more than one yen in return. More than half of what my company earns is reinvested, and even then, growth is a struggle. Run your own company with your own money, and then see what your opinion is.

    Take a look at the world around you, and the economic situations therein. You have Japan in recession, Europe on the edge of recession, China growing at a rate less than expected, with America being the only bright spot. And were it not for the drop in oil prices, America would be much worse off.

    The governments of these countries have spent themselves so far into debt that they have skewed the basic economic fundamentals. Their massive debts have caused them to raise taxes, manipulate interest rates to zero, and raise the costs of living and doing business. These factors have the natural consequence of causing deflation, because as costs rise, consumption falls. as consumption falls, companies make less money. This results in less revenue, and further deflation, so governments begin printing money, somehow thinking that cost-push inflation will morph into demand-pull inflation. In Japan there is the added problem of a rapidly falling population. Much, or most of these "trillions" of yen have not actually been earned through sales or increased business, this money is simply the result of market capitalization pushed up by higher stock prices which were driven up by low-interest easy money poured into the economy by the central bank. If there is a "correction" in the market, as there often is, these trillions of yen could disappear overnight. Companies do not dare spend this money, it is not a solid asset.

    If you were a company, where would you build a new factory, hire more workers, or otherwise expand your business? In Japan? Red tape up the yin-yang, the second highest corporate tax in the world, a government debt which is two-and-half times GDP, and a falling population to boot? You can already see the answer by looking where companies are imvesting. It is not here,

    Posted in: Japanese companies doing more firing than hiring: OECD report

  • 0

    sangetsu03

    Abe has all the money he ever needs, given that Japan's obligations are priced in yen and Japan is the sole issuer of that currency. As story indicates, piles of yen can be printed with no repercussions. That's a good position to be in.

    Since Japan is an island with no resources, it is nor true that all of Japan's obligations are priced in yen. How about oil? Gas? Gold? Silver? How much does Japan import each year? How much does Japan import each year from foreign countries? These are not paid for in yen.

    Exactly what QE was designed to do (either intentionally or by accident).

    Wrong, QE was designed to cause "cost-pull" inflation, with the resulting assets used to stimulate the economy in the hopes of starting demand-pull inflation. Neither have happened, so QE has not succeeded. The BOJ needs to cause inflation in any way possible because all of the government's entitlement programs and normal spending plans were formulated with inflation in mind. Without this inflation, the weight of the government's debts increases, and servicing the debt becomes more difficult.

    Posted in: BOJ faces crunch time as oil slump threatens inflation target

  • 1

    sangetsu03

    This spiral down where companies cut wages and higher paying jobs which then lowers demand and brings further cuts is part of a major contradiction of capitalism that Japan will have a hard time managing in the coming decades because of the greying and shrinking population also impacting demand and because capital has been freed to exploit the poorest and least regulated societies.

    Japan's workforce is a contradiction of capitalism, where unncessary workers with unrelevant degrees earned from mediocre universities have for decades been hired into lifetime jobs. These workers are promoted, in the true sense of socialism, by seniority, rather than by performance. Companies have long done this in order to enforce the traditional Japanese heirarchy system which is based mainly upon age. Since employees are paid by seniority, rather than performance, they don't perform. And when employees don't perform, companies don't perform either. And when companies don't perform, then neither does the national economy, nor the country it exists in.

    There is very little capitalism in Japanese companies, or in Japan intself. Business in Japan is based on relationships between companies and regulators, with the free market playing less part than you would believe. That is why it is collapsing under it's corrupt and inefficient weight.

    The "poorest an least regulated" societies you mention are quickly becoming less poor. As their peoples have more jobs, and more income, capitalism asserts itself, greed and/or ambition grows in-step with increases in opportunity, education improves, along with the general well-being of everyone who lives in these countries. But I suppose you would rather these numberless poor remain in eternal poverty so you can continue to earn more in an hour than many of them do in a month?

    Places like America, Canada, and Australia were "exploited" by freed capital a few centuries ago, to the benefit of us all.

    Posted in: Japanese companies doing more firing than hiring: OECD report

  • -2

    sangetsu03

    This is not a "free" trade agreement by any definition. One side gets zero tariffs, the other gets 18.5% after 15 years? This is called getting "bent over and shafted", there is nothing free about it. The Japanese get an entirely free market, the Aussies get nothing even close in exchange. Worse yet, in a decade and a half from now, when the tariff is reduced to 18.5%, you can bet that local Japanese distributors and sellers will jack up the prices on Australian beef (as they have done to other imported products after tariffs were reduced or abolished), and that there will be little or no difference in the shelf price, which Japanese sellers say "protects consumers from price fluctuations.". The Australian farmers are not likely to see much of an increase in their sales, even less so when after 15 years, there will be millions fewer Japanese consumers around to buy beef. Australia got taken to the cleaners in this so-called "free trade" deal. What a scam.

    Posted in: Free trade agreement between Japan, Australia goes into effect

  • 5

    sangetsu03

    There is no, has been no, and will be no fiscal reform. The most recent tax imcrease saw an increase in gross revenue, but for every extra yen gsined, the economy lost three yen. The $450 million in extra revenue was negated by the $500 billion spent on stimulus, and the $750 billion yen lost by economic contraction. Future tax increases will only further decrease economic acitivity as more money is siphoned out of the private sector and put into the public secotr.

    Despite the need for "fiscal reforms", the current government's new budget is a new spending record, and it will likely not be enough, toward the end of the year one or more "supplamentary" spending programs will probably be introduced, especially if government inflstion goals and/or growth goals are not met (which already looks certain).

    Posted in: Aso calls for drastic fiscal reform to balance budget

  • -8

    sangetsu03

    Union leaders and other critics say that the proposed pact would prompt U.S. companies to funnel manufacturing jobs to lower-wage countries.

    What? Haven't US companies been doing this for the past 4 decades? And one of the reasons these jobs have been moved is because of the unions themselves, right?

    What the unions don't say is that this outsourcing to lower-wage countries has lifted more than a billion people on other parts of the world out of poverty. But the unions don't care about such things, do they? They want theirs, and they want it now, regardless of the cost to others.

    And if you are a worker in certain indusrtries in America, and aren't a union member, you can't get a job. And even if you a join the union, and become a member, any job will go to a more senior union member. Performance doesn't count, American unions are devout followers of the seniority-based system, like the kind which has dragged Japanese companies to extreme low levels of performance, innovation, and profit.

    Posted in: U.S. unions intensify attacks on new emerging free-trade pact

  • -1

    sangetsu03

    Many economists say Japan returned to growth toward the end of last year as exports and corporate investment picked up.

    Who do they mean by "many"? Q3 results were awful, Q4 probably saw a fraction of a percent in growth. Corporate investment has indeed picked up, as Japanese companies have merged with, or acquired interests (Suntory, Ajinomoto, et al) in foreign companies. This does Japan no good, as these investments are not being made in Japan, most profit and tax revenue will remain outside Japan. Sharp, which last year saw a spark of profit, looks set to return to the "loss producing" category which more than two-thirds of Japanese belong to.

    The poplulation declined a further 268,000 last year, which means there are that many fewer consumers of Japanese goods. Hard to imagine any growth occurring in such an environment.

    Posted in: Japan expects real 1.5% growth in fiscal 2015

  • -2

    sangetsu03

    And how will lower oil prices allow the Japanese to spend more on other things?

    It probably won't, because when supply prices decline, Japanese companies generally pocket the savings, and don't pass them on to consumers in the form of lower prices. When the yen appreciated by 40% a couple of years ago, the cost of imported goods was not reduced by 40%, was it?

    Posted in: Amari says falling oil prices positive for economy

  • -2

    sangetsu03

    Most economists forecast that the U.S. economy will expand more than 3% this year. If it does, 2015 would mark the first time in a decade that growth has reached that level for a calendar year.

    Most economists made the same prediction for Japan last year, yet Japan is now in recession, right?

    The unemployment rate is now near the 5.2% to 5.5% range that the Federal Reserve considers consistent with a healthy economy — one reason the Fed has been expected to raise interest rates from record lows by midyear.

    This rate is deceptive, the formula is reworked each year to make the number look lower than it really is. It counts only people who are applying for uneployment benefits. The real number to look at is the labor participation rate, which shows the percentage of people who are actually working. This number remains at a multi-decade low, and indicates that a full one-third or Americans are not working.

    Spending at retailers and restaurants rose in November by the most in eight months, an early sign that Americans are spending some of the savings they are enjoying from gas-pump prices.

    Exactly. Any improvement in the American economy is based entirely on the decrease in energy prices, not by monetary easing (the benefits of which have gone entirely to the stock market) or other government policy. America's economy is oil-driven, and any increase (or decrease) in the price of oil touches every household immediately. Obama cannot take one iota of credit for any recent improvement in the American economy, it is entirely the result of lower oil prices.

    Posted in: Job gains in U.S. bolsters confidence about 2015

  • 1

    sangetsu03

    And Abe is on track, interesting that the pessimists still bang the hollow drum that Japan is crashing horribly into the financial brick wall.

    These numbers make broad assumptions, the first being the the central bank will meet it's goal of 2% inflation, and second, that Japan will meet it's GDP growth goal as well. Meeting even one of these goals is, shall we say, less than likely. But unless both are met, then the rest is all irrelevant. None, not a single one, of the government's predictions for inflation or growth last year proved accurate, did they? GDP predictions last year were off by a full 400%, and not in a good way. The same group is doing the same math this year, and we are likely to get the same incorrect results.

    Posted in: Gov't to propose Y96.3 tril budget for coming fiscal year

  • -1

    sangetsu03

    That's not true. Japanese corporations are sitting on 2 trillion dollars of unused cash, which will balloon even more after the corporate tax cut comes into effect.

    The article is about the government, not companies. The government is sitting on debt, not cash.

    As for companies, their money is their money, they earned it, they have the right to do what they want with it.

    Posted in: Gov't OKs Y3.12 tril extra budget to fund stimulus spending

  • -1

    sangetsu03

    Raise the tax, and then raise spending, the same old song. Did anyone actually believe that there was ever any intention of paying down debts or lowering deficits when the consumption tax was raised?

    All this money sloshing around and all they can think of is ....'shopping vouchers'?

    What money is "sloshing around"? So far, Japan's economy has lost three yen for every one yen that the increase in the consumption tax added in revenue. The only thing sloshing around in Japan is the world's heaviest national debt, it is slowly but surely drowning the country.

    Posted in: Gov't OKs Y3.12 tril extra budget to fund stimulus spending

  • -1

    sangetsu03

    Huh? Did you read the article sangetsu? These problems date back only to 2003. What does a supposed research program from the 70's have anything to do with Honda hiding defects? Stop trying clutching at straws to find a defense for a Japanese company, when the truth is they simply got caught breaking the law. You lose all credibility.

    When airbags were being developed it was understood that they were capable of injuring people even when they work properly. It was America's NHTSA in the 1970's which pushed the development of airbags, and which mandated their use in all cars. I used to be a traffic accident investigator (for ten years), and can't even count the number of broken noses, arms, and other injuries caused by "properly deployed" airbags. Correctly working airbags Honda did not "break the law" by not reporting defects, which is why no one at Honda, or Takata, or anywhere else has been charged with a crime. The offense they are accused of is "negligence resulting in death or injury".

    From 1990 to 2000, "normal" airbag deployments killed 175 people, mostly children, out of more than 3 million deployments. The number of injuries caused by "normal" airbag deployments is about 2000 times higher. The number of deaths and injuries caused by defective airbags is statistically insignificant in comparison.

    There is no such thing as a safe airbag, or a safe car, for that matter.

    Posted in: Honda fined $70 mil in U.S. for not reporting death, injury complaints

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