Saturday, November 01, 2014

Japan's Big Bet

Can't beat deflation and slow growth? Japan has an answer for its decades-old woes. Ignore the facts and just mark up traditional measurements of the economy .I.E. buy stocks and print more wealth a.k.a. money. So the score will look like a win but the real economic game may not necessarily match the score. This includes redirecting the one and a half trillion dollar pension fund to buy more risky assets.Grandma and grandpa don't need this at this time.We already did what Japan is now embarked on.In essence its a currency war.Currency wars can end in hot wars because of survival priorities.I.E.Buy local.These ultra liquidity machinations favor the wealthy and governments who have enormous debt to repay.Deflation would bankrupt those two but would help the rest.Ergo defaltion will succeed because of popular demand. It will be a rocky road. But less government should be one worthy outcome.

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