Monday, November 24, 2014

Japan GDP numbers miss could be intentional if you believe in conspiracy theories

Dennis Gartman appears on CNBC and explains to Melissa Lee on the Japan trade

The miss[Japan GDP numbers] was so egregiously large, I mean you don't miss by almost 4 percent on one side to another. It would be one thing to expect GDP to be half a percent and it was down half a percent. Instead you were looking for up 2 percent and you were down 1.6 percent. That is an amazing miss. I have a feeling that's been massaged to make certain that we had a bad number so that the Bank of Japan would have absolute cover for continuation of devaluation of the yen, and at the same time that Abe will be given the right to do away with the ludicrous nature of a tax increase. 

The consumption tax shouldn't have been put into effect last year, it clearly should not be put into effect next year. And I think the GDP number if you want to align yourself with conspiratorialist was simply a massaged number to make sure that Abe has clear reign not to go ahead with that tax increase.