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Mayhem Requiem

Japan Officially Out Of Recession


Economy

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Economy

http://www.wsj.com/articles/japan-q4-gdp-worse-than-expected-at-22-1424044641

 

I decided to make a separate thread for this because this is big news. Japan finally came out of its deep recession last year which was Japans 3rd recession since the 2008 financial crisis.

 

However consumer spending remains very weak and theres concern that wages not keeping up with inflation (even tho its low inflation) could lower consumer spending further and a 4th recession is not out of the question

 

Japan continues to try to debase the currency with lots of money printing to create inflation and lower the currency to help fuel exports

 

Japans interest rates on debt have fallen to 0.34%. Such low rates despite the worlds largest debt burdern (at 230% of GDP) underscores how low inflation is and how reluctant investors are to go into equities and real-estate and how little they trust their own banks, so they lend the Government to keep their money safe.

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monsterdreams

Good, cause otherwise the olympics were gonna be an even bigger issue for them

Haters gonna need more than a flashlight for my shade
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Economy

Good, cause otherwise the olympics were gonna be an even bigger issue for them

its ok... their problems are chronic but life cant end there haha

 

since late 80s their economy is a constant stagnation in and out of recession and deflation, a shrinking population and stalling productivity

 

But their low inflation and low investor confidence and a combo of other factors gives them really low interest rates so the debt just keeps pilling on but they never actually go into a full out credit or financial crisis or make any major changes as a result...

 

so their problems just keep dragging on and on and on and on for 2 and a half decades now :rip:

What does this mean...?

means their economy stopped shrinking, for now

 

but they have so many recessions and periods of stagnation so often that when it seems like they are finally making progress the economy crumbles again right back to square 1

 

its literally been 2 steps forward and 2 steps back for the past 25 years :rip:

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