it is so simple... Japan will not fix their entire banking system until a paradigm shift occurs in the culture... at present for a large bank to become liquidated, its CEO or president must commit suicide... the shame in opening the books leads quickly to such a climax... therfore no books are opened yet, no purchases of distressed portfolios has happened yet, nothing get done... heads will inevitably roll, in ceremonious ritual
check recent history for validation... the shame involved in being responsible for massive losses of other people's money is beyond western understanding
business as usual... new LDP leader is most recent winner (loser?) in party's musical chairs contest... next comes a stagnation as coalitions are loosely built, fractious partnerships are made, nothing gets done... LDP now has no credibility, no leadership, no mandate
the people want a change, reform, real progress... they are sick of the govt forced pension investments... but they stubbornly cling to the culture that binds them to the problem
the biggest unstated question pertaining to Japan is ...
*** WHEN IS THEIR BOND MARKET BUBBLE GOING TO BURST ???
*** STOCK MARKET BUBBLE WAS FOLLOWED BY A SILENT BOND MARKET BUBBLE ???
progress economically is predicated upon allowing inflation to regenerate spending (not current hording), which in turn undermines JGB bonds, which pricks the staggering, enormous, calamitous, unprecedented, unspoken bond market bubble !!!!!
nothing will get done, because the solution involves a depression following the bond market bubble burst... take a minute and imagine what happens to your $1,2,3 trillion dollar pension investments after these political mutual funds are unraveled... a sizeable reduction in pension assets !!!
Japan's economy is the closest thing to a mafia running a govt... Japan is an economy planned on the premise of capital costing ZERO, resulting in bond yield converging to ZERO... it worked, and here we are
the solution for Japan requires a 30% reduction in stock market assets, a 30% reduction in pension assets linked to the bond bubble, as interest rates exit FantasyLand
tick, tick, tick / Jim Willie |
