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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Japan Daily- Current account surplus declines in August

Posted by WARREN MOSLER on October 15th, 2008


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Unwinding of yen borrowings/shorts is also an increase in what I call ‘savings desires’, and drives the trade gap out of surplus towards deficit.

Japan doesn’t like it but it is an improvement in real terms of trade.

The appropriate fiscal response is to move to sustain domestic demand.

Highlights:

Highlights

Current Account Surplus Down 52.5% In August


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One Response to “Japan Daily- Current account surplus declines in August”

  1. Pierre LePew Says:

    Warren I saw a special on the largest mall in the philippines, the third largest in the world. SM (shoe mart) They interviewed asian princesses who were standing in line in the middle of the mall at a wire transfer counter where mommy and daddy working overseas were sending them remittances so they could shop til they drop. They had some asian finance clone on talking about all the domestic demand was only possible because mommy and daddy were burning the midnight oil overseas working their little fingers to the bone, in a global recession though, these remittances will go down, already in the USA the remittances of illegal latin american types back to mexico and such is not growing like in the past, domestic demand is not going to be able to be sustained, let the tower of babel fall, quit fighting gravity.

    Oct. 15 (Bloomberg) — Japan posted its largest-ever trade deficit in August as soaring energy costs pushed up the nation’s import bill and export growth cooled.

    The shortfall was at 236 billion yen ($2.3 billion) from a year earlier on a balance-of-payments basis, the Ministry of Finance said in Tokyo today. It was the largest gap since the release of comparable figures in 1985.

    Reply

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