US durable goods orders jump; China shares tumble; China demographic crisis; older Aussies need to work; swap curves flatten; oil and gold down; NZ$1 = 66.1 US¢, TWI-5 = 70.8

both share markets are correcting slowly which is much much better than china boom and bust cycle.
there will be good buying towards the end of this year early next year as earnings are still strong

Control is lost elsewhere.

The “dollar” problems continued this morning as several proxies continued toward new lows. Copper fell to as low as $2.342 (July contract still) while crude is down close to $47 in the front months. The back end of the WTI curve, perhaps more importantly with respect to growth and fundamentals tied to the “dollar”, fell to new lows. The Brazilian real dropped to 3.38 to the dollar while gold only rebounded by the smallest amount from Friday’s low. Read more

The only positive so far has been how Japan’s renewed descent into its familiar form of depression has finally reversed QQE’s impoverishment through the sudden trade deficit. In other words, to regain a positive (or nearly flat) trade balance it was “necessary” to destroy Japan’s internal growth. While exports increase (year-over-year) in nominal terms on the yen’s renewed devaluation last year, imports have not followed unlike the prior building in the first year of QQE.

That is another common element uniting Japan’s plight in 2015 with the US, as import demand is suddenly non-existent from anywhere (which is why everywhere from Brazil to Australia to Canada through China have found “unexpected” recessions this year). Read more

You don't think it may have something to do with governments eagerness to promote "investment" in the stockmarket cough Kiwsaver cough.

Japan has a older segment moving through - this exacerbates a global problem, which is why it hit them early.

It is a factor which the "highly educated" report writers haven't cottoned on to yet as they never learnt to analyse the money and market from the hands-on position. (sticking to theories, trends and philosophies).

The experts are using a rear-vision mirror, built when our universe revolved around capital shortage and high labour cost - including (remember your Adam Smith...and his time window) very little capital _investment_ in the production cycle. With Smith, anyone with a little training can take up basic tools and do valuable work. That has changed. Now we need hugely capital hungry tools, training, and certification to provide an marketable product. No longer is _labour_ the primary capital serviced.

Thus we have capital vs labour imbalance. (and as a symptom widespread income inequality).

In the past this imbalance was "in favour" of labour input, so injecting more money into the system, increased the financial capital, and allowed increased investment, and rewards from that. this worked because we were short of currency.

We can't just turn back that clock though. Cutting the supply of money will just crash the finance side (supply and demand forces) as the economy would stall. That's we we are now.
Increasing money supply however...will increase the problem...as we are finding now. It eases the immediate issue but labour is less valuable so many can't get sufficient income to keep up sustainable continuous buying levels to keep the economy afloat.

In the past creating more money and spending fixed the problems because we were on that side of the cycle. now we are on the capital rich side of the cycle, that doing that behaviour of pushing futher along that side of the scales isn't going to fix the problem.

My thoughts is that it is the over expensive (over capitalised) cost of production - AND the legal pressures used to force that to be the only valid market. this process has cut off the collapse/risk, and lower ends of competition that allows the market to reset (ie demand remains expense, because cheap supply isn't permitted into the market). This is effectively removing large portions of labour from the market, reduces competition, stops participation by many people and potential companies, makes progress for the remainder very slow. IMO, the financial correction we are experiencing is simply the realignment to that situation ... the result will be a massive beggar class and a shrinking wealthy class.
As those with wealth and having power will struggle to keep themselves in that position.

The solution to me is to explore ways to reduce burden passed on through overcapitalisation in product (and overcapitalisation that comes though as an entire network of compliance pass on costs). Thus reduce cost of production, increase bottom line, increase disposable income _especially_ at the bottom of the pyramid - this is effectively increasing the margin, while keeping prices low; as well as increasing demand to soak up supply.

This is why japan got hit with a quadruple whammy: shrinking labour population, increasing elder capital yield population, the forces described above, and global financial trends. That they're still here at all is testament to some hard work and quick handling!

Anarkist - didn't you here - When we sign the TPP Japans trade barriers will go and they will buy lots of dairy products - So we have nothing to worry about, we will all be rich again yipee