Sunday, April 14, 2013

Japan Full Frontal: Charting Abenomics So Far

From ZeroHedge:
Curious how Abenomics is progressing six months after its announcement? These charts courtesy of Diapason should provide a convenient status update.


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And some accompanying thoughts from author Sean Corrigan of Diapason Commodities Management

So the new man at the BOJ, Harohiko Kuroda, has hit the ground running, announcing a package of wild monetary nostrums beyond even the imaginings of the most cynical, the nub of which will see him act to double the monetary base of Japan by buying (mostly, but not exclusively) government debt—with no restrictions as to maturity—to the tune of around 30% of current GDP.

Though much has been made of the fact that the new man will soon be outgunning even Ben Bernanke in relative terms, few have considered that the rate of increase will be less than that effected by the SNB, while the target value of ~60% of GDP will do no more than match that achieved by the supposed monetary guardians of the equally thrifty Swiss, so the move is not exactly unprecedented. So far – and we emphasize that the jury has by no means reached its final verdict in this case – Bern has not managed to ignite a domestic conflagration to ravage the foothills of the Alps, so it might just be that the Tokyo touchpaper turns out to be attached to a similarly damp squib....MORE