TOKYO (AP) -- Japan's economy contracted at a larger than earlier estimated annual rate of 7.1 percent in April-June, as companies and households slashed spending following a tax hike.
News from The Associated Press
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Rules:
- Trade what you see, not what you believe
- Don't put stuff in your signature that a Mod doesn't like
"Government exists to protect all people’s rights, not some people’s feelings." - A. Barton Hinkle
Great Tools:
http://www.CreditKarma.com
http://www.Mint.com
http://www.SaveUp.com/r/nmJ
there is no inflation. massive debt load does not matter as long as you can swing the interest service on the principal. taxes do not have any effect on consumption or capital investment. an unemployed and aging population does not affect gdp or growth. it's only 10%. rice and mud huts are cool, rustic. so are rocks and sticks.
click your ruby heels dorothy. click your heels.
100g
Don't forget about how much that "interest service" will go up when they start raising rates... only going to 0.5% will double that service cost. Can our GDP handle it? Doubt it.
Oh, and don't forget the 2% GDP "tax" that Cameron proposes on all NATO nations... woohoo, more spending
Rules:
- Trade what you see, not what you believe
- Don't put stuff in your signature that a Mod doesn't like
"Government exists to protect all people’s rights, not some people’s feelings." - A. Barton Hinkle
Great Tools:
http://www.CreditKarma.com
http://www.Mint.com
http://www.SaveUp.com/r/nmJ
I didn't see in the article any reference to the economy's performance prior to the tax hike (tax hike occurred April 1st, and Japanese consumption tax is levied on everything - houses, groceries, medical services, etc.). I know that many households scurried to make "big" purchases prior to April 1st. Cars, electronics, new homes, vacations, what not. So, naturally one would expect a decline in consumerism after April 1st.
An interesting side note - prior to the tax hike, all items for sale had to be advertised by law with the consumption tax (then 5%) included. So, if a bakery was selling bread for ¥99 a piece, that's the price you'd pay at the register. After April 1st, the law changed so that prices can now be advertised without the tax included. So now at this particular bakery I mention, bread costs ¥111 a piece. AND when you pay, they tack on 8% at the register. So now my ¥99 bread is going to cost ¥120. That's quite a markup for a tax that only increased 3%. Needless to say, I eat mostly rice.
Japan has big problems long term demographically. Time to start issuing work Visas to foreigners because there aren't enough young to foot the bill.
S&P500 (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
||
Yahoo Finance Realtime TSP Fund Tracking Index Quotes |
Bookmarks