“You have your fear, which might become reality. And you have Godzilla, which is reality.”
~ Godzilla (1954)
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Destruction…
Disruption…
And the downfall of Japan.
Bankruptcies of businesses across the board are at an 11-year high in Japan.
Yet, their economists are not scared.
No one seems the least bit worried that Godzilla is stomping through the commercial district crushing every business in its path.
Reuters reports:
Japan’s bankruptcies set to hit 11-year high in 2024, data shows
“Japan’s bankruptcy filings this year are set to surpass 10,000 and hit the highest since 2013, private-sector data by Tokyo Shoko Research (TSR) showed on Monday, ahead of a closely watched central bank meeting next week.
In November, 841 Japanese companies went bankrupt, bringing the January-November tally to 9,164, already exceeding last year’s total, data from the credit research agency showed.
The 2024 bankruptcy figure will likely exceed 10,000 for the first time since 2013, when 10,855 firms went bankrupt.”
You can’t ignore Godzilla.
This is reality.
Eventually, your fear of being found out can’t help but be noticed.
Over 10,000 businesses will file for bankruptcy in 2024 – a near record high.
Still, the disillusionment, or maybe the willingness of the Bank of Japan’s governor to let this happen is supported by what the BOJ calls “resilience.”
Bloomberg reports:
Japan’s Economy Shows More Resilience as BOJ Mulls Hike Timing
“Japan’s gross domestic product grew at an annualized pace of 1.2% in the three months through September from the previous quarter, the Cabinet Office said Monday. The result beat a preliminary estimate of 0.9%, largely on better net exports, capital expenditure and inventory figures. Economists had forecast an upward revision to 1.0%.
The stronger growth data support the Bank of Japan’s view that the economy will continue to expand moderately. The decline in both net exports and capital expenditure shrank, while inventory growth was also revised up.
BOJ Governor Kazuo Ueda is expected to closely examine economic data including its Tankan survey on Dec. 13 before the central bank’s Dec. 19 policy decision. Ueda said in an recent interview with the Nikkei newspaper that the timing for a hike is “nearing,” fueling speculation that the bank may increase rates this month.”
Japan’s Banker is relying heavily on GDP growth from the money printer.
They’ve managed to devalue their currency at pace with the US dollar to export their goods at a profitable price.
That way, the stats show the economy is growing at faster pace than previously thought.
Really, the money supply is increasing at a comparable rate to the US dollar so that numbers on both sides look good.
And that means, both are printing more money.
It doesn’t necessarily mean a more efficient economy, but one of the mandates of Central Banks is to manage perception.
The only thing, when Godzilla is crushing Kyoto, people tend to notice.
