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| Crowdfunding, Atlanta style |
The Atlanta road trip was a success. Arrived late Saturday night and spent Sunday tooling around town catching up on good food. Last night there was a party in our honor that was fun and loud. This morning it's raining like crazy.
Here was the scenario on Friday:
Allowing for a test of a 78.6% area around 2042.80, things may be progressing according to plan.
If a dip does not materialize, 2050+ is possible first.
Elsewhere, here the sort of crap that passes for financial news these days:
Japan Unexpectedly Enters Recession as Abe Weighs Tax: Economy
No, the failure of Abenomics was almost an absolute certainty; a recession was expected. When madmen control the levers of fiscal and monetary policy, expect the worst.
This is also how news organizations regurgitate the same old tired theories until they eventually become accepted as "truth."
Japan will not come out of deflation until there is a psychological change from financial conservatism to expansion in the form of higher consumption.
Higher sales taxes, higher import prices due to a weak yen (leading to higher food prices), these are the sort of things that reinforce consumer retrenchment.
Higher sales taxes are Abe's "third arrow" of reforms. If he cannot push through a second increase, his agenda will stall, government revenues will miss their targets, and he'll be back in the same corner.
No wonder why he's calling for early elections.
Watch the yen and the Nikkei and JGB yields and US 10-year yields. The S&P is priced for perfection.
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