- Japan is intentionally devaluing its currency through money printing. The recent boost in the Nikkei is simply the result of this flood of new money.
- Japan industry is now experiencing cost increases on two fronts: inflation of the money supply, and rising prices on the global market for commodities.
- Rising bond rates are all but guaranteed.
- Gold vs. the yen is surging and will pick up momentum from here
- The ten predictable events that will happen next, as the unavoidable Japan disaster unfolds
In Part II we explain why Japan has unequivocally entered the terminal phase of its 20-year reflationary experiment.
Further “abundance” harvesting from this point forward will be difficult if not impossible.
Is the devaluation of the yen really the successful technology that will fool nature? We think not. The outcome will have spectacular implications for many global assets, ranging from real estate, to stock markets, to oil and gold.
Observers of Japan from this point forward should be sober about the threshold the country has now crossed. Japan has effectively said to the world: Go ahead, make my day. Sell our currency, give us inflation, and get out of our bonds.
Japan has indeed taken to heart the Krugman dictum, and committed to irresponsibility.