American Economy Chasing Japan off the Cliff…
Poor Japan. They can’t seem to find anyone slick enough or simply devious enough to just fudge their economic numbers. We’ve got the math massagers here in America telling us everything is groovy, unemployment is amazingly low and our economy is just peaches. But Japan can’t seem to hire the same bold-faced liars that we can. Perhaps their Bushido samurai mentality simply doesn’t allow them play Pinocchio.
Japan’s economy just entered a recession… and for the 4th time in just 5 years! The world’s third largest economy is in the dumps, following the footsteps of their Asian neighbors China (whose economy has been slowing drastically although not truly in recession).
But here in America we’re told everything is awesome! Have you seen the robust 1.5% GDP in the last quarter? Holy Smokes! Jump for joy! Somebody get ready to call the Fire Department on this “en-fuego” American economy.
Let’s all buy more stocks! What’s the worst that can happen?
The truth is, our economy stinks and is headed the same direction as Japan’s and the stock market is going to react pretty poorly when it happens. There’s simply no place left to chase gains…
With the J.V. Squad now ripping through Europe, shooting and blowing up everything in their path, global economies slow-to-near-dead and commodities in a super slump, all signs point to bad things on the horizon. But we’re told to keep buying…
Perhaps it’s time again to get into cash, as we suggested way back at the beginning of the year. There’s a great chance that cash will reign supreme if indeed the US falls back into recession as Japan just has. Speaking of which, here’s more about our Japanese friends from Yahoo! Canada:
“Japan slipped into its fourth technical recession in five years between July and September – spotlighting how the government’s “Abenomics” policies have struggled to drag the economy out of chronic stagnation.
Official data on Monday showed the world’s third-largest economy shrank an annual 0.8 percent in July-September after a 0.7 percent contraction in the prior quarter, putting it firmly into recession – two consecutive quarters of declines.
Monday’s data highlights the need, analysts say, for structural reform aimed at breaking through supply-side constraints including labor shortages in a fast-ageing society, which suffered from chronic deflation for more than 15 years.
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Have a wonderful and profitable week ahead. Keep a lookout for your delivered newsletter which will now come every Saturday.
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