Japan is going negative, except

Negative population growth.

Negative GDP growth.

Negative wage growth.

Negative foreign currency reserves growth rate.

Negative loan growth rate.

Negative foreign direct investment growth rate.

Negative current account growth rate.

The 10-year Bond rate is declining and may go into negative soon.

The list goes on.

And today, we have another negative added to the growing list:

Negative interest rate on some deposits.

It appears that the massive Quantitative and Qualitative Easing (QQE) implemented initially by BoJ’s Haruhiko Kuroda on April 4, 2013 and followed by a series of others are not working to pop the inflation rate to 2% target.

 

Something in Japan is positive though: BoJ’s balance sheet and Japan’s national debt.

Japanese central bank balance sheet. Source: http://www.tradingeconomics.com/

Japanese national debt as a percentage of GDP. Source: http://www.tradingeconomics.com/

Source: Bloomberg

But, the picture isn’t very pretty.

Japan is moving on a slippery slope heading into the land of no return.