Global Inflation In Japan Does Not Speak German

People are right to suspect these consumer price indices insofar as these are nowhere near as exact or accurate as sometimes made out to be. No one can average out consumer price experience for everyone to four decimal places; what even is an average consumer?

But in Japan’s case, like so many others, including the US CPI, we needn’t obtain unassailable levels of precision. The data is unambiguous despite the fuzziness in methodology and statistic construction.

Not just energy or food in each bucket, either, but also core prices recently revised substantially, too; and that matters a bit more because recall all the way back in September 2016, BoJ said that it was going to leave no monetary stone unturned until this core inflation rate reached, surpassed, and then stayed well above 2% annual rates for a prolonged period of time (overshooting policy).

Are these central bankers even capable of embarrassment, let alone something more scientific like recognizing and acknowledging how thoroughly proven QE has been?

Proven in only the respect that this smoke and mirrors is nothing whatsoever to do with printing presses, currency of any kind, or inflation.

There is a spectrum to global inflation conditions – yes, global inflation. The real money out here is eurodollar translated, and it has little use for bank reserves of any denomination including US$ (sorry, Jay). Banks are what make money, not central banks. Without the former, it doesn’t really matter what the latter does.

US inflation experience over the past few months has been temporarily supported (or dealing pain) from Uncle Sam, while in Europe without helicopters to that degree much less. Far less still in Japan from no support whatsoever, the fruits of both QE and money-financed fiscal expansion having been done the longest.

But the main problem is the public; and by that, I don’t blame the average person at all since every one of us has been outright lied to for more than 20 years. Each and every time one of these methodically disproven QE’s is rolled out – and it doesn’t matter where – the media uncritically writes the same thing as what had been written of the very first QE two decades ago:

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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