From Bill Bonner’s Diary (USA) –
On Easter Sunday, we met a smart man who confessed to having voted for Donald Trump in the Florida primary.
Of course, we wanted to know: What was he thinking?
More on that in a moment…
A headline in yesterday’s paper jolted us away from the election.
“Japan’s hard-up retirees turn to crime,” begins the headline in the Financial Times.
After years of QE (quantitative easing), ZIRP (zero-interest-rate policy), NIRP (negative-interest-rate policy), and Abenomics (Japanese prime minister Shinzō Abe’s stimulus-focused economic policies) – which is to say, all the standard deviations of modern central banking – older Japanese people must now break the law… to get “free board and lodging behind bars.”
Is this what is coming to the U.S.?
“Yes,” is the safe answer.
Japan has been ahead of us on this entire trip. Its stock market crashed in 1989. That led to a Great Recession, which the authorities fought like the Imperial Army defending Okinawa. Japanese policymakers invented QE… and for 26 years, they’ve held interest rates near zero.
Shinzō Abe became prime minister specifically to end Japan’s quarter-century-long slump. He failed.
The “three arrows” of his Abenomics platform – fiscal stimulus, monetary easing, and structural reform – seem to have driven the defenders even further to ground.