Krugman 'Really, Really' Worried Abenomics Might Fail

He's worried that it MIGHT fail. What does he call the last 30 years?

Ha ha, good point! It's a case of too little too late. The US Fed proved that massive QE intervention can quickly pull an economy out of recession. The problem has been that the BOJ's timid approach has not worked. The trick is to get the newly printed Yen working in the economy. Other than loading up the helicopters with Yen and sprinkling them across the countryside, it's something that even the Fed struggled with. Basically, they just decided to keep flooding the economy with newly printed greenbacks until some spilled over from the financial sectors into the working economy. Yes, the vast majority of the new money went into driving up the price of financial instruments, but some small part overflowed into the working economy, and that was enough to pull the U.S. out of deflation. So if they feel they need the equivalent of $83 billion injected into the working economy to halt deflation in it's tracks, they probably need to print $400 billion, assuming 80% would just flow into financials and only 20% would ever make it into the working economy. As always with the BOJ, too little too late. They could easily have fixed this 20 years ago if they just had the guts to take the plunge.

Define "pull" please. Is it the same as artificially inflating and supporting the price of just about every asset class available, becoming an implicit and in many cases explicit underwriter of those assets, and mostly enriching those making massive speculative bets on those instruments with impunity, but without contributing anything tangible to the real economy, e.g. improving the country's crumbling infrastructure, education and health care (did I just describe Goldman here?) - or something else?

Since talking about FED hikes rate is so boring.

SUddenly we have all this funny speakers make comment out of Japan. What they want attention now, since The market been just ignore them and pay attention to EUro, US, China lol.