Japan’s PM prepares to print money for the whole world

December 18, 2012 by · Leave a Comment
Filed under: Currency News 

Looks like the Japanese Yen carry-trade will be getting a fresh boost by Japan’s Prime Minister Shinzo Abe.  Instead of allowing deflation and defaults happen to get debt levels down to sustainable levels, instead we are going to crank them up to unprecedented levels.  In the end this will not work because your debasing your currency and it is a race to the bottom that ends in making a formerly valued currency, valueless.   Enter in, a new currency.

Here are a few interesting quotes I wanted to point out:

We think this could be the beginning of a fresh reflation cycle for the global system, combining with the US recovery to mark a turning point in the crisis


It is tremendously important for global growth, and markets are starting to take note

I read the second quote to say, we have to have more credit creation or we will face debt deflation which we want to avoid at all cost.  It will not be pretty when the music stops.

The Telegraph – Japan’s incoming leader Shinzo Abe has vowed to ram through full-blown reflation policies to pull his country out of slump and drive down the yen, warning Japan’s central bank not to defy the will of the people.

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Japan’s Premier Aso says U.S. must expand bailout plan

October 15, 2008 by · Leave a Comment
Filed under: Global News 

Well I hope we listen to the Japanese.  We are not having a liquidity problem.  We are having a serious debt and confidence problem that is creating the symptoms of a credit crisis.  What the give away sign is that the credit problem is actually so acute and it actually slowing business.  When you are dependent on credit, that lack of credit is much more noticeable and effective on your lifestyle.  That changes a person perspective and that changes their purchasing behavior.   In closing, when you bail everyone out then you bail no one out.  

News Piece:


Japan’s Prime Minister Taro Aso said the U.S. government must accelerate steps to bail out financial institutions to help arrest plunging stock values.

“People think the $250 billion plan is insufficient and that’s why markets are falling,” Aso, 68, told lawmakers today in a reference to the U.S. initiative to buy stakes in thousands of financial firms. “They need to make a quick decision to inject capital.”     

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Yen posts biggest advance in decade as carry-trade evaporates

October 11, 2008 by · Leave a Comment
Filed under: Global News 

The yen rose against the euro and posted its biggest weekly gain in a decade against the dollar as a global stock rout prompted investors to sell higher-yielding assets and pay back low-cost loans in Japan.

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Yamato Life in Japan Files for Bankruptcy, Citing Bad Investments

October 10, 2008 by · Leave a Comment
Filed under: Global News 

Well this is not a U.S. crisis or a OECD crisis but a global crisis. We will see more failures in all markets as this global de-leveraging is taking place. The other option is we could see world governments doing more to intervene in the markets and prop up these insolvent institutions and in turn that would make the problem more acute. It would be more acute because the more you change the rules during the game the more people will not want to participate and will just withdraw there assets into cash and wait on the sidelines till they know there is more certainty.

News Release:

Yamato Life Insurance Co., a 98- year-old Japanese insurer, filed for court protection from creditors in the nation’s first bankruptcy in the industry in seven years, with debts exceeding assets by 11.5 billion yen ($116 million).

A decline in the value of securities holdings widened losses at the Tokyo-based company, whose debts total 269.5 billion yen, as value of its investments widened amid the global market meltdown, Yamato Life said at a press briefing in Tokyo.

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Japan’s economy shrinks in second quarter, recession on the horizon

August 12, 2008 by · Leave a Comment
Filed under: Economic News 

Japan’s economy shrank in the second quarter, the government said Wednesday, as slowing exports and waning consumer demand pushed the world’s No. 2 economy to the brink of recession.

Japan’s gross domestic product, or the total value of the nation’s goods and services, dropped at an annual pace of 2.4 percent in the April-June period, a marked downturn from a 4.0 percent rise registered in the January-March period.

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