Signs of Reflation?

Following up on our unleash the "economic" Kraken theme in Profits, Presbyterians and The Kraken?... 

"By focusing on the plus signs, the degree of Japan's difficulties was understated if not completely set aside. Even at its peak in early 2014, Industrial Production was still 12% less than it was in February 2008. That 10.5% gain during QQE and early Abenomics wasn't really all that significant, and in the wider historical context never really appeared to be. Rather than learn from what is a clear repetition in pattern, these mistaken impressions and interpretations were repeated once more in 2016."

Regardless of "sign", one must give credit where it is due.

Therefore, Industrial Production in Japan just may be the best “reflation” indicator there is anywhere in the world.... a potential rollover in it starting in the middle of last year would be quite concerning as it stands starkly against both inflation hysteria and “globally synchronized growth.” It also represents global economic shrinking and how this has been mischaracterized repeatedly over the last decade.

"Globally synchronized growth" or the reflation of bubbles, while shrinking economic capacity, does not constitute a recovery.

"An upturn is not unexpected, nor is it a recovery. The world desperately needs the latter, having experienced (three times) only the former. Japanese Industrial Production may be the best example of all of it."

Credit can be taken for what never happened (recovery) and a shrinking of economic capacity, by those solely responsible for this festering global economic condition. 

One could ask those in control the obvious, "where's your sign?" Speaking of the obvious and in keeping with our theme, and now this...



More to come in Transitory Emasculation? Stay tuned, no flippin. Recommended reading: The Best 'Reflation' Indicator May Be Japanese - Jeffrey Snider