If you are one of those who never believed in Abenomics, then the following will not come as a surprise. After reading the below, read this piece: Five Years Later, Fed Finds QE Has “At Best, Moderate Effects on Economic Growth”.

There goes the tax hike (and any expectation of fiscal balance). Japanese GDP grew at a miserly 0.6% QoQ, missing expectations of +0.9% (the biggest miss in a year) and slowing from an already revised lower 0.9% growth in Q1. So much for Abenomics breathing life back into a balance-sheet-recessed nation. Typically this kind of miss would be met with cheers as bad is good but in the case of Japan where they are so far down the rabbit hole, there is no moar left. The already collapsing JPY-carry trade is unwinding in a hurry as JPY surges to a 95 handle on the news; the USD is dropping, Nikkei futures are down 200 points, S&P futures are down a few handles, and gold is holding notable gains.

Read more at: Yen Surges As Japanese GDP Misses By Most In A Year | Zero Hedge.