In aviation, the term ‘V1’ is applied to the point during a take-off when the aircraft has reached a speed that is beyond the point of no return.

In other words, upon reaching V1, the aircraft will be travelling so fast and approaching the end of the runway at such as speed that it will no longer safely be able to abort the take-off. It is committed to attempt a take-off, even in the case of engine failure or some other malfunction. This is a rather accurate, if somewhat dramatic, analogy to the state of the Japanese economy at the moment.

Abenomics combined with truly massive QE is attempting to force the economy back on a growth track after two decades of deflation and sub-par growth. Some growth has already emerged, as evidenced by the latest set of GDP figures. Consumption seems to be responding to the spectre of inflation…

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