So Japan's economy just went phut with a 7 percent annualized GDP decline as consumers refused to be fooled by the monetary sleight of hand on the screen and instead focused on the old fraud behind the curtain. This is a natural consequence of Abenomics - the attempt by Japan to restore growth and prosperity by printing more money and running up enormous government debts. It worked after a fashion for a while but eventually Japan was forced to put up consumption taxes. In response consumers bought forward (much of the incremental growth was probably this) and then stopped. Hence the massive quarterly decline. Once again magic ain't so magic after all.
Liberal (mostly academic) economists are constantly in a pickle. They're liberal because they want to be hip (and God knows that's hard for an economist) and meet cute chicks (even harder). So when their lefty confreres pursue the microeconomic policies of drunken hyenas with the inevitable negative outcome in terms of prosperity, employment and hope they are desperate for a state administered steroid that will magically cover all the chaos that they're terrified to criticize lest the hot Art History major they are dating disapprove.
This is why cats like Paul "Pauly k" Krugman get so angry: the cognitive dissonance between what they know to be true and what they want to be true is so great that they are willing to believe that central bankers are magicians with these cool magic wands and ISLM spells.
It's so bloody Dumbleboring and pathetic. Pauley K: quit humping the Central Banker's leg.
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