Game Over Japan: Real Wages Crash Most In 21st Century, Savings Rate Turns Negative
Submitted by Tyler Durden on 12/26/2014 22:09 -0500

When about a month ago it was revealed that Japan's shadow economic advisor is none other than Paul Krugman, we said it was only a matter of time before the Japanese economy implodes. Terminally. We didn't have long to wait and last night the barrage of Japanese economic data pretty much assured Japan's transition into failed Keynesian state status.

In fact, after last night's abysmal Japanese eco data, we doubt even the most lobotomized Keynesian voodoo priests have anything favorable left to say about Abenomics: not only did core inflation miss expectations and is now clearly in slowdown mode despite Japan openly monetizing all gross Treasury issuance, not only did industrial production decline 0.6% missing expectations of an increase and record its first decline in 3 months with durable goods shipments crashing, not only did consumer spending plunge for the 8th straight month dropping 2.5% in November (with real spending on housing in 20% freefall), but - the punchline - both nominal and real wages imploded, when total cash wages and overtime pay declined for the first time in 9 months and 20 months, respectively.



And the reason why any poll that shows a recently "re-elected" Abe has even a 1% approval rating has clearly been Diebolded beyond recognition, is that real wages cratered 4.3% compared to a year ago. This was the largest decline since the 4.8% recorded in December 1998. In other words, Abenomics has now resulted in the worst economy, if only for consumers, in the 21st century.

But that's not all: as Bloomberg reported, for the first time ever since records were collected in 1955, Japan's savings rate turned negative.

...............................

More:
http://www.zerohedge.com/news/2014-12-26...-turns-negative


FYI
Abenomics refers to the economic policies advocated by Shinzō Abe since the December 2012 general election, which elected Abe to his second term as prime minister of Japan. Abenomics is based upon "three arrows" of fiscal stimulus, monetary easing and structural reforms.[1]
https://en.wikipedia.org/wiki/Abenomics