Morning Reads

Here’s some fiscal insanity from Japan, where they’re trying to juice the economy with Abenomics while simultaneously promising massive austerity ahead.  I’m sure that will prove very reassuring to markets.

Here’s another heart-warmer. Bank of America  has decided it’s been paying U.S. workers too much to review mortgage and other loan documents.  So it’s off shoring those jobs.  Now workers in India will be checking off on those appraisals, etc.  It should help the “struggling” conglomerate.

Finally, The Guardian reports that Ireland has fallen back into recession “despite” its multi-billion euro austerity drive.  The fact that they use the word “despite” shows you just how far we are from collectively figuring out the obvious.

Good luck to us all.


9 responses to “Morning Reads

  1. Brian Brain

    “Those whom the gods would destroy, they first make mad.”

    • In the same vein. ‘Against Stupidity the Gods Themselves Contend in Vain’ — Schiller.

  2. Prime Minister Shinzo Abe’s government intends to implement comprehensive tax reform, including an increase in the “Who Needs Consumption?” tax, over the next two years. The government wants to cut Japan’s GDP in half by 2015 and achieve a depression by 2020.

    I believe they can achieve these lofty goals. 😉

  3. Just a passing thought, I’ve not heard or read any references to credit card companies having much in the way of reserve requirements. Also the practice of making material donations and then leaving the value space blank to be filled in at some later date, as a tax substitution for a consumer defined sort of fiat currency.

    • my point was that there are ways by which individual citizens can act to change the amount of currency in circulation, which don’t relate to the type or quality of money types.

  4. financial matters

    Definitely 3 off the mark situations. Thanks for the reality check.

  5. golfer1john

    The US has cut its deficit in half, while keeping spending more or less constant and letting taxes go up (mostly due to automatic stabilizers) faster than at any time in history. All with relatively anemic growth. If Japan can get the economy growing, as Vice Economics Minister Yasutoshi Nishimura says they will, I don’t see why they can’t cut their deficit in half, too. Especially if their exports grow robustly. The biggest headwind might be energy imports, unless and until their nukes come back online.

    The hard part will be getting to balance in 2020 without inducing another recession.

  6. golfer1john

    “Workers in the new Bangalore office follow checklists to determine if appraisals are complete…The checklists in India cover 17 items such as whether the appraiser remembered to sign the report”

    Duh … I could do that with a week of programmer time and no employees, in India or elsewhere. Seems like there must be more to it.

  7. Comment on Ireland situation:
    Yea! what’s wrong with bleeding an economy with austerity. Didn’t early medical techniques include bleeding sick patients (to release the poison)? British PM Cameron is proposing at least 3 more yrs. of austerity to turn his country’s economy around. It seems like only countries in Middle East have enough people who are willing to go into the streets and demand a change (also are willing to die for it)