• The helicopter discussion is going to matter.
  • The BOJ has been hosing all of this cash without evident effect (except that we can’t know how ugly Japan would be without it), and Japan will soon have to go to the next ditch. If not the last, getting there.
  • As media everywhere have latched on, annualized 2nd quarter U.S. GDP grew by only half of estimates only 48 hours old -- 1.2 percent.
  • The even deeper surprise: consumer spending is still hot, in the second quarter rising to 4.2 percent annualized from 3-percent-ish in prior quarters. The GDP drag is caused by sick investment of all kinds, not just transient inventory and trade adjustments.
  • That picture feels like unsustainable hollowing-out. Nobody wants to invest in new productive capacity because China is overdoing it for the whole world.

If it was Silly Season last week, it’s back to deadly serious now — complete with substantial surprises after a sleepy summer Friday. All of us thought the big deal on Friday would be the Bank of Japan (BOJ) and new stimulus. Would the BOJ go helicopter? Not that it is not already, but there is a technical argument about helicopter vs. standard means of printing money.

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