Ozzy Osbourne was an unlikely Prince of Darkness… but who’s US President? The “Trade Agreement” with Japan is a massive pre-emptive strike opportunity for Japanese Automakers. Will it benefit US Manufacturing? No way! And don’t forget your “Bullsh*t Bingo Card” for tonight’s Tesla numbers.

After the Japan bubble burst in 1989, the economy and stocks suffered three lost decades. Now the Nikkei has (almost) rehit its 34 year high. Is Japan back on track or is it just the weaker yen?

Japan says it is not tightening? Nope. It “eased” yield curve control which is normalisation by any other name. It will have profound global investment flow consequences. Time to buy a new copy of the Japan Company Handbook and put your buying boots on.

The ECB has tweaked the words and now has low interest rates forever, and a new mandate to “tolerate” higher inflation. What will it achieve? To answer look at the failed 30 year experiment in Japan and the multiple parallels. The outlook for Europe as a global economic and innovative powerhouse looks shaky.

Blain’s Morning Porridge, Sept 3, 2020: Lessons from Japan “The [...]