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Japan Catches Thrift Bug


JEast

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Not to beat the drum on deflation in Japan, but can Japan save anymore? Apparently so as the Louis Vuitton bags are no longer in vogue. “I’m not drawn to Louis Vuitton at all,” said Izumi Hiranuma, 19. In addition, Wal-Mart Stores finally turn a profit after seven years. Anyway, thought this NYT article interesting and counter to the last theme we on the board had that excess cash was being spent on luxury items.

 

http://www.nytimes.com/2009/09/21/business/global/21yen.html?_r=1&partner=rss&emc=rss

 

 

Cheers

JEast

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  • 2 weeks later...

Just a follow-up since the 30-year is approaching the 4% mark again. If inflation is indeed around the corner, it appears to be several years down the road and the Hoisington folks are on the right track.

 

Japan's core consumer prices dropped 2.4% in August year-on-year, the fourth successive month of record falls.

 

http://news.bbc.co.uk/2/hi/business/8279832.stm

 

 

Cheers

JEast

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I remember a comment Krugman made about 9 months ago recalling his various ideas for Japan during the early nineties.

 

The one I remember is to convince the population that strong inflation is coming... that this belief, if widely held, might cure deflation. Then, he laughed it off... uncomfortably.

 

Curious... Did Japan do quantitative easing during the early 1990s?

 

 

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