Comments on: Inflation Expectations in Japan at 7%, Spurs Consumption http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7.html Mon, 23 Nov 2009 05:40:52 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: DMD http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7.html#comment-9604 DMD Mon, 16 Jun 2008 14:09:00 +0000 http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7-spurs-consumption/#comment-9604 Jerks. "Savings Glut" indeed. <br/><br/>My net worth is twice my income now, and will be 3 times my annual income within a year or two. Then 4 times, 5 times, 6 times, etc. <br/><br/>I admire the Japanese for being thrifty savers. I wish my country (USA) had the same discipline. Something about the banks and the government telling me I need to spend my money just strikes as completely against my self-interest. But I couldn't say why. Jerks. “Savings Glut” indeed.

My net worth is twice my income now, and will be 3 times my annual income within a year or two. Then 4 times, 5 times, 6 times, etc.

I admire the Japanese for being thrifty savers. I wish my country (USA) had the same discipline. Something about the banks and the government telling me I need to spend my money just strikes as completely against my self-interest. But I couldn’t say why.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7.html#comment-9586 Anonymous Mon, 16 Jun 2008 06:12:00 +0000 http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7-spurs-consumption/#comment-9586 <i>It's amazing to me that so many people fall for this chicanery.</i><br/><br/>The first time I heard about inflation expectations" and savings glut" was quite recent. In a discourse by Bernanke. Spending most of by professional life in non-economic circles, I was amazed by the total absence of decency that those words convey. <br/><br/>"Saving glut" in one of the poorest countries of the world, overpopulated by the way, self-restraining their consumption to feed the West (in some way literally speaking). "Inflation expectations" is no better. All about a fireman finicking over the 911-phone on "what a fire really is"<br/><br/>People will re-learn about the grasshopper and the ant pretty soon and economics...This gas and food inflation is only a nasty starting point. No economics is no consuming science... Consumption is a given in any society. Economics is all about working and saving first. <br/><br/>The American people had a wonderful period of time in a wonder piece of land... You are are now joining in a "world of limited resources". Welcome to our earth, with limited resources including limited money. <br/><br/>This country need REAL economics. A la Volcker. It’s amazing to me that so many people fall for this chicanery.

The first time I heard about inflation expectations” and savings glut” was quite recent. In a discourse by Bernanke. Spending most of by professional life in non-economic circles, I was amazed by the total absence of decency that those words convey.

“Saving glut” in one of the poorest countries of the world, overpopulated by the way, self-restraining their consumption to feed the West (in some way literally speaking). “Inflation expectations” is no better. All about a fireman finicking over the 911-phone on “what a fire really is”

People will re-learn about the grasshopper and the ant pretty soon and economics…This gas and food inflation is only a nasty starting point. No economics is no consuming science… Consumption is a given in any society. Economics is all about working and saving first.

The American people had a wonderful period of time in a wonder piece of land… You are are now joining in a “world of limited resources”. Welcome to our earth, with limited resources including limited money.

This country need REAL economics. A la Volcker.

]]> By: Vijay http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7.html#comment-9581 Vijay Mon, 16 Jun 2008 04:52:00 +0000 http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7-spurs-consumption/#comment-9581 This whole inflation-expectations game is so absurd. Expectations are the result of inflation, NOT the cause of it. Inflation is the growth in supply of money and credit. The Keynsian view of inflation as price-inflation is not even well defined (what measure of price growth is even appropriate and why?)<br/><br/>It's very convenient for central banks to blame inflation on people's expectations when they're the ones cranking the printing presses.<br/><br/>It's amazing to me that so many people fall for this chicanery. This whole inflation-expectations game is so absurd. Expectations are the result of inflation, NOT the cause of it. Inflation is the growth in supply of money and credit. The Keynsian view of inflation as price-inflation is not even well defined (what measure of price growth is even appropriate and why?)

It’s very convenient for central banks to blame inflation on people’s expectations when they’re the ones cranking the printing presses.

It’s amazing to me that so many people fall for this chicanery.

]]> By: S http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7.html#comment-9579 S Mon, 16 Jun 2008 02:51:00 +0000 http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7-spurs-consumption/#comment-9579 Barrons likes japan equities because pricing power is back (one of the reasons). Really sad and perverse. This is the lowest common denominator in investment thesis...the financial community knows no descency Barrons likes japan equities because pricing power is back (one of the reasons). Really sad and perverse. This is the lowest common denominator in investment thesis…the financial community knows no descency

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7.html#comment-9577 Anonymous Mon, 16 Jun 2008 01:25:00 +0000 http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7-spurs-consumption/#comment-9577 Recognizing that the yen carry trade is back in full swing, would not consumer inflation in Japan strengthen the trade due to a weakening yen? That would seem to be the case nless and until the JCB begins to raise interest rates, thus strengthening the yen and diminishing the spread that accounts for the yen carry trade, in which case the carry trade would back off. Recognizing that the yen carry trade is back in full swing, would not consumer inflation in Japan strengthen the trade due to a weakening yen? That would seem to be the case nless and until the JCB begins to raise interest rates, thus strengthening the yen and diminishing the spread that accounts for the yen carry trade, in which case the carry trade would back off.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7.html#comment-9576 Anonymous Mon, 16 Jun 2008 01:22:00 +0000 http://www.nakedcapitalism.com/2008/06/inflation-expectations-in-japan-at-7-spurs-consumption/#comment-9576 Aren't some of those savings in US bonds? And if they pull them out wouldn't that increase rates here in the US? Aren’t some of those savings in US bonds? And if they pull them out wouldn’t that increase rates here in the US?

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