After the tsunami in Japan Keynesian cheerleaders confidently predicted that the disaster would be good for the Japanese economy, because there would be plenty of rebuilding stimulus spending. What they don´t realize is that the destruction of perfectly good assets, and then having to rebuild them-that rebuilding is a drain on resources, not a stimulus. Data shows that the Keynesian are wrong on Japan, and their economy is in real trouble. This from Mish Shedlock.
Japan Machine Orders Drop 7.1%, Exports Down 3 Consecutive Months; Predicted Growth or Predicted Mirage?
Bloomberg reports Japan Machine Orders Fall More-Than-Estimated 7.1% as Yen Climbs
Japan’s machinery orders fell at the fastest pace in three months in December as a faltering global economy and gains by the yen dimmed the outlook for exporters…