Money growth USA Japan since 1980, Recessions, Deflations,

I attach charts of M1 money supply for both the USA and Japan even though it is difficult to compare money supply concepts between countries due to the different institutional setup.

M1 in USA increased 6-fold from 400 in 1980 to 2400 today.

M1 in Japan increased 8-fold from 70 to 560 over the same time interval

So Japan has been more liberal on their money supply growth. The Japan money spurt began a decade sooner than the USA money spurt because the Japan recession began sooner than the USA recession.

The spurt in money supply has not done much to pull either country out of the recession. Real estate is still weak in both countries as is gold and silver. Case Shiller index attached. Many areas of the USA have been deflating for decades especially in good survival, low pollution and high quality of life areas. Most cities crashed in 2008 and may continue to deflate without more stimulative policies. Low interest rates have not boosted house buying and house prices 2007-2012. Until maybe this year — not clear yet. House inflation seems to be concentrated in areas where rich bankers live and vacation. And products that the rich buy such Porsche, Ferrari, Stocks and bonds. As they bid up the price of bonds then interest rates fall, as we have seen. Stock prices have been rising too. If Obama would boost the tax on capital gains we would see less buying frenzy on stocks and bonds so their prices would fall and interest rates would rise. The current system is rigged to enrich the rich and deflate everybody else into depression. The national economy is rich+poor so the boom in rich areas is masking the depression in poor areas.

http://www.nytimes.com/ref/realestate/greathomes/GH-Hamptons.html?pagewanted=all THE HAMPTONS Lavish and Luminous. Just the words conjure images of beautiful people living in beautiful houses on beautiful beaches. Southampton has long been one of the social centers of Long Island. Founded in the 17th century by English colonists, Southampton was established as a fishing village. Today, some of the architecture reflects its origins. Main Street is wide and tree-lined at the center of a quaint but fashionable village filled with restaurants, art galleries, clothing boutiques and home-furnishing shops, including a branch of Saks Fifth Avenue. Wooden benches dot the sidewalk, providing spots to sip coffee while people watching for famous folk. A mix of old money, industry and media power brokers, and newer Hollywood personalities, Southampton’s high-profile restaurants and nightclubs serve as a playground to this second- home population. Both the billionaire George Soros and Henry Kravis, the financier, have homes in the area. Just as exclusive are the town’s private golf courses, which include the Shinnecock Hills Golf Club, three-time host to the U.S. Open, the National Golf Links of America and the soon-to-open Sebonack Golf Club, where membership, by invitation only, is in the $600,000 range. Housing prices, as always, depend on location. Pat Petrillo of Sotheby’s International Real Estate cited a recent transaction in the Southampton Estate section, where a house on 1.8 acres with a pool and tennis court was sold for $14 million. “About five years ago, you would have expected to buy oceanfront for that,” she said. In the nearby village of Water Mill, Richard Gere paid $2.7 million for his home in 2001, and now just the ground it’s on could be worth as much. “You can’t touch land in Water Mill for under a million dollars,” said Huck Esposito of Blue Bay Realty. “And that’s raw land.” Houses, he added, are in the multimillion-dollar range.
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Bloomberg.com
Boston Booms as Workers Say No to Suburbs: Real Estate The South Boston waterfront was long a bleak area separated from the rest of the city by the Fort Point Channel, its docks and warehouses recalling a faded shipping past. Now, rechristened the Seaport district, construction cranes dot the landscape as builders put up high- end condominiums, offices and hotels in one of the biggest neighborhood transformations in Boston history. “The waterfront is an overnight success that’s taken nearly 30 years to come to fruition,” said Brian Kavoogian, president and founder of Charles River Realty Investors LLC, which has developed or acquired more than 20 million square feet (1.9 million square meters) of real estate in the Boston metropolitan area.

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