After August’s 2.8% YoY surge in household spending, September has collapsed as yet another false start in the delusional realm of Abenomics comes to an abrupt end.
Against expectations of a 1.5% rise, household-spending plunged 1.6% YoY
And while the economists and statist-supporting, head-nodders proclaim this huge miss to expectations simply a reflection of a series of ‘natural disasters’ (including typhoons that struck Osaka and Tokyo, and an earthquake on the northern island of Hokkaid) which deterred consumers more than expected (which is odd since economists were well aware that they happened), the serial disappointment and collapse in hoousehold-spending (red box above) is arrow 1 in the back of Abenomics.
The weak data adds to signs that gross domestic product may have contracted slightly in the third quarter.
Arrow 2 is worse, way worse; as it appears that since The BoJ started buying everything and anything not nailed down, Japanese peoples’ propensity-to-consume has utterly collapsed.
Of course, Abenomics Einsteinian insanity expansion of the central bank’s balance sheet has had one effect…
The stock market has soared back to its highest since 1991 – so that must mean something is going well, right?
Well Kuroda’s still laughing…
And the old joke from Asian trading floors: “when asked what he thought of the recovery, Shinzo Abe responded “Depends!”“