Japan Takes Huge Tumble... At Risk of another Recession

[Economy 52,951]

http://m.wsj.com/articles/japan-economy-shrinks-7-1-annualized-in-april-june-1410134506?mobile=y

Japans economy in the second quarter of 2014 is revealed to have shrank at a wooping anualized rate of 7.1%! To put that into perspective, the worst quarterly contraction the US had during the 2008 financial crisis was little more than 5%

Business investment and consumer spending which have all been weak just got significantly weaker

Some economists argue that this is only temporary due to the steep sales tax hikes and that as long as it doesnt create a downward spiral, the economy should stop contracting.

If Japan shrinks in the 3rd quarter again, it will technacly enter into yet another recession. 2 quarters in a row (6 month period) of contraction is a technical recession

[Dayman 6,251]

Maybe they should release more Smash Bros and Pokémon games to boost the economy a little...

[Computer 10,980]

They are flopping so hard. They need to take a break and release some Jazz to cleanse their palates.

They have been deflationary for as long as I can seriously remember :lmao:

[Miel 15,009]

Are they still in a deflation?

[Economy 52,951]

They are flopping so hard. They need to take a break and release some Jazz to cleanse their palates.

They have been deflationary for as long as I can seriously remember

well they havent been deflationairy lately. Even their massive economic issues cant create inflation when ur printing $75Billion a month (US) to devalue the yen

Even so yeah it is low inflation. Around 1% right now i think

And im 21... Their troubles started before i even came into existance

But its their fault. They arent dealing with the root issues. Deflation is a symptom of a problem. Printing money is helping the symptom but not dealing with the fundamental problem

As long as they keep trying to fix their supercifical issues, this 25 years of stagnation will continue dragging on and on until they reach a breaking point and collapse

Sure, a debt of 240% of GDP might be manageable for them considering they are paying 0.5% interest on it. But even with rates like that they cant just keep piling it on forever

[Cody Draco 2,531]

Maybe they should release more Smash Bros and Pokémon games to boost the economy a little...

 

Maybe they should bring back the original Yu-Gi-Oh! series for one more season and movie...

 

 

 

I need more Joey Wheeler in my life...

 

[Economy 52,951]

Are they still in a deflation?

on and off as has been for the past 20-25 years

The last couple of years not as much cause they increased money printing through QE to $75 Billion (US) a month and devalued the yen on currency exchange markets big time

Even so inflation has been around 1% only. But economic growth is too anemic to cause natural inflation. If they stopped printing money they would go right back inti deflation now this second! :MANiCURE:

[GagaXCupcakke 3,818]

They spent all there money on ARTPOP and Cheek to Cheek

[HANZ 4,380]

ugh why can't things like this happen to russia or a worse country than my loved Japan?

 

[Altair 2,003]

Most times you don't know if you're in a recession until after the recession, so maybe they're already out of the recession.

[Economy 52,951]

ugh why can't things like this happen to russia or a worse country than my loved Japan?

Russia is a developing Country. Its harder for this to happen to developing Countries whos economies are still developing

Countries that are already developed and industrialized on the otherhand start having a hard time maintaining their peak and competitiveness with other emerging markets without decaying over time.

Its harder to get increased productivity once the population is already educated and your already developed and growth slows. Also after prosperous conditions for decades ppl in developed Nations start to expect more and more which the Government cant always afford but will do it anyways to keep ppl happy but that has long term concequences

In Japans case they are worse off than most industrialized Nations cause their demographic issues are just about the worst in the world and they aready have the biggest debt burden in the world too...

Most times you don't know if you're in a recession until after the recession, so maybe they're already out of the recession.

well this was the past quarter and the 3rd quarter is about to end

The numbers always come in a good month or two after the quarter is done tho if thats what you mean

[HANZ 4,380]

Russia is a developing Country. Its harder for this to happen to developing Countries whos economies are still developing

Countries that are already developed and industrialized on the otherhand start having a hard time maintaining their peak and competitiveness with other emerging markets without decaying over time.

Its harder to get increased productivity once the population is already educated and your already developed and growth slows. Also after prosperous conditions for decades ppl in developed Nations start to expect more and more which the Government cant always afford but will do it anyways to keep ppl happy but that has long term concequences

In Japans case they are worse off than most industrialized Nations cause their demographic issues are just about the worst in the world and they aready have the biggest debt burden in the world too...

 

well this was the past quarter and the 3rd quarter is about to end

The numbers always come in a good month or two after the quarter is done tho if thats what you mean

 

gosh it seems like you can never win in this world

 

perfection is a desease of a nation, in this case, Nippon

[Economy 52,951]

gosh it seems like you can never win in this world

perfection is a desease of a nation, in this case, Nippon

yup

Even the #1 best ranking Country in the world to live in (Norway) may soon have big issues

With only 5 million people and a relatively high oil production they have been able to have high welfare, good healthcare and budget surpluses.

But they also tax a lot. The strong economy is a result of Government spending and not a competitive private sector.

Because of high taxes and high labor costs Norways industry is actually quite poor and 1 in 5 adults of working age are either on disability or welfare sucking the system

Their oil revenue which has allowed them to spend a lot and create prosperity that way is also what has destroyed other industries and sources of generating wealth. The private sector was replaced by Government spending made possible by oil revenue

Now that Norways oil production is beggining to decline what will sustain them? They have a big wealth savings fund but that will only get them so far

[HANZ 4,380]

yup

Even the #1 best ranking Country in the world to live in (Norway) may soon have big issues

With only 5 million people and a relatively high oil production they have been able to have high welfare, good healthcare and budget surpluses.

But they also tax a lot. The strong economy is a result of Government spending and not a competitive private sector.

Because of high taxes and high labor costs Norways industry is actually quite poor and 1 in 5 adults of working age are either on disability or welfare sucking the system

Their oil revenue which has allowed them to spend a lot and create prosperity that way is also what has destroyed other industries and sources of generating wealth. The private sector was replaced by Government spending made possible by oil revenue

Now that Norways oil production is beggining to decline what will sustain them? They have a big wealth savings fund but that will only get them so far

if not even norway is safe in this world............no one is

[Economy 52,951]

if not even norway is safe in this world............no one is

well it will be several years before oil production falls enough to give them trouble... And once that happens they can dip into their savings fund to pay for restructuring and creating a new economy not dependant on oil

So Norway isnt necessairily screwed. My point is that even the most prosperous places have their issues and are at risk of going downhill if not properly managed by their Government

Wealthy Countries that have higher labor costs and a population making expensive demands has a harder time competiting with emerging markets...

and an economy thats already efficient and the population already educated and the country already industrialized will have a harder time growing their GDP and so at best it grows along with population

So its harder for Developed Nations to stay at their peak. Nations like Russia have less of those issues