Speaking of Japan, it’s not difficult to figure out why Japanese banks might seek some small pittance from diving back in the choppy waters of eurodollar redistribution. Conditions at home, particularly since the middle of last year (right when the big turn Tokyo dollars came up), have been, to put it mildly, way less than ideal. Politicians listening to central bankers, as they always do, as they all do, were fooled into believing the Japanese economy had only temporarily stumbled in 2018, and with the marvelous assistance of those central bankers had made its way into recovery, or close enough to one, for the twice-delayed VAT tax hike to take effect.
Instead, Japan’s economy peaked during last year’s second quarter and was already partway into (another) recession by the time former PM Abe’s government blundered into its fiscal adjustment. In truth, the Japanese suffered a mild recession in 2018 and the economy was on track to be hit with a double-dip before midyear last year, hardly a system on solid ground for such a tax jolt. Read more…..
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John Sculley is an entrepreneur and investor in high-tech startups. Formerly serving as CEO of PepsiCo and Apple, John now serves as the Chairman and CMO of RxAdvance. He is a mentor and advisor on all things tech.