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.

Deflation: Helps Poor

Central banks around the world and our own Federal Reserve are working to stop creeping deflation. In fact their actions are diametrically opposed to the needs of working people. It's a fact that wages are stagnant if one can even find a job.So the challenge for workers is making meager salaries cover the costs of living.The vast majority need stable or preferably lower prices at stores and show rooms.But the Central Banks answer to governments, corporations and wealthy individuals who all have massive debt to repay.Deflation would bankrupt those three. But deflation will help everyone else.There is no choice. Deflation will come.It will come because of popular demand.So expect it.

Technology Driven Deflation Is Pushing Us Towards Barter System

The unions have gone away. The middle class is going away. Wages are going away on a relative basis when buying power and less hours worked are added up. The Federal Reserve for all intents and purposes is giving money away. to offset the realities of deflationary trends. So far the drunken sailor monetary policy has failed to reignite job growth or wage increase in any satisfactory way. What's to be done? Well its being done. Technology driven deflation is pointing the way to salvation. Salvation will be a barter system. If adopted, a bartering society will erase unemployment immediately. It will also point out people who are worthless to themselves and by implication to society. Barter will also humanely kill off  bureaucrats . There won't be any checks to cash There won't be any interest to collect. And military proxy wars will go away. And humans will take their place and only one place. They won't be able to "invest" in corporations that decimate the planet. Rhinos and other endangered species will get a pass also.

 Barter and kill a bureaucrat or investor. Sounds good to me.

Currency Wars Lead To Trade Wars Lead To World Wide Depression

Today the incoming Japanese Prime Minister Shinzo Abe followed through on his campaign promise to reflate the Japanese economy. He directed the Bank Of Japan to reach 2% inflation in the countries stagnant economy. Two percent does't sound very high? Fact is Japans inflation doesn't exist. Fact is the latest reading is -.4% So from there to 2% probably won't happen But it got him and his party elected and that's what he wanted.. During his campaign he pointed out that the  U.S. and the European Union's printing of money was the main problem for Japan's economic woes. The debased currencies of dollar and Euro were edging out Japan in the market place. Since most every major country in the world have similar products, it may come to just cost of goods and services as the deal maker or breaker.And that means relative currency valuations win the business. Trade has become a zero sum proposition There is just so many people and just so much discretionary income. ERGO .Gentlemen, start your printing presses.

And if cheap money doesn't do the trick? Then the next move by governments will be trade protection laws. That will lead to a contraction in global business and will force layoffs around the planet. Then the odds favor a depression and maybe a war being declared by the major economic powers to really generate business and instill brand loyality and to direct irate voter attention to foreigners and away from the local centarl governments.

Deflation: No More Price To Earnings Ratio

In the future there will be no equity markets as we know them today. Corporations will trade at book value or less.That's because money will be scarce. Consequently barter will be more efficient . Price to earnings ratio will vaporize. But it will be a much better enviornment to live ONCE we get there.

Nervous Warren Buffett is Refreshing

The usually boring bean stacker Warren Buffett was on Charlie Rose's show last night. But he was animated and nervous. He fidgeted in his chair. It was refreshing to see this collector of certificates work up a sweat. He never had to sweat for his billions. He just collected others sweat in the form of equity certificates. How nervous was he? Well he was so nervous that he wrote an article in the op-ed section of the Wall Street Journal asking Congress to tax him and his mega wealthy friends more! Gee he must be nervous. He spoke of the miserable job members of government were doing in closing the huge budget gaps. He opined that a few extra bucks from him and his glutinous pals wouldn't be missed and could help. Not fooling me Warren. He is really worried that his whole stack of stock certificates might become worthless if the U.S. had a financial collapse. And then his whole hollow life would have come to naught by anyones calculations.

Poor Warren. He doesn't know that the real cause of the deficits is the failed philosophy of democracy. He kept on crowing about the power of "printing money"as the ultimate rescue of the United States and its democracy. The man's a bore.

Deflation is in Our Future

Most people living today haven't experienced deflation. In fact most people have based their life on the opposite which is growth and inflation. Democratic governments derive their power from promising ever increasing growth, prosperity and entitlements-i.e. a political inflation. So what will be the end of western democracies? Deflation. Deflation on a scale not even seen in the Depression era, because we did not have the size of government then that we have now. Save your money and have some weapons for self defense handy.