Japan Spent 60 Billion Dollars Defending The Yen!

"Manoj Pradhan argued in a note back in March that Japanese workers have seen two years of falling real wages – and this feeling of getting poorer might be one of the things suppressing Japanese consumer spending. He argued back then that consumption growth would only come after consumers have recouped the purchasing power they have lost due to inflation, and that they would need several quarters of wages outstripping prices before they feel comfortable increasing consumption."

"Profits from the manufacturing sector look set to grow 16% this year, with the nonmanufacturing sector set to climb 11%. Both of which would be record levels of profitability."

"The Bank of Japan discuss in their latest report that over a period of time they are fairly confident that the Japanese economy will get into a positive output Gap – and with that positive output Gap you'll see steady income growth for workers and with that steady income growth you'll get steady growth in consumer spending. This is the “virtuous cycle” that they are talking about between income and spending that they believe will get the Japanese economy rolling."

"He says that this change may ultimately provide the context in which the central bank is able to confidently raise interest rates as real wage growth becomes entrenched."

"He says that the government's popularity has taken a pounding because real wages in Japan have fallen so badly that it's now pressuring everyone it can to raise worker wages and if that happens over a period of time you're going to get inflation – and the right kind of inflation."

"the pace of the currency’s decline – which is down about ten percent against the dollar year to date is possibly starting to spook Japanese consumers, which could lead them to reduce their spending – which is the opposite of what policymakers want to happen."

"there will be almost the same number of workers in Japan as retirees by 2050."