Posted on 04/03/2013 6:29:19 PM PDT by blam
Edited on 04/03/2013 6:31:19 PM PDT by Admin Moderator. [history]
I’m a Kyle Bass fan.
I think she’s gonna blow....
Remember when we were all told that the Japanese model of a government-industry partnership was going to rule the world.
That does not sound very Milton Friedmanish.
Can someone translate Econese?
Yeah.
We are DOOMED!
;)
In other words, they’re going to try and inflate and bailout their way to a booming economy.
Full disclosure, I only took a few economic classes in college, I’m not a guru.
Do you have you nickels ready?
I bought a massive load of junk silver back in the Carter inflation years. Krugerrands too.
Oh, Yes, I remember...I worked at Intel at the time...KANBAN...
All of this international correction, over-correction, gerry rigging.. It can only have one outcome and it’s not good.
Good.
I bought Krugerrands in the early 90's too.
Psst,...those silver Krugerrands WERE junk.
Having been to Japan multiple times since the early 90s - I can only assume the are talking deflation in regards to non-essentials and the burst real estate bubble. Prices for everyday things in yen and dollars both are more expensive then the early 90s - even soda machines are 110-150 yen compared to 100 yen. Sounds little different then what were going through now - a bimodal economy. They are only looking at the banking industry in my mind and not the everyday world - horse blinders in full mode.
Kyle Bass does a good presentation on Japan as the front leader in the global meltdown to come.
As I remember he presents the debt service the government of Japan is obligated to make payments on and looks at these required debt payments against the government revenues.
If I recall correctly he claims the government revenues can just cover payments against debt. Thus, the government is insolvent and can’t sell more debt because it can’t pay the interest due.
The Japanese government can still print money but that can cause inflation in consumables and also affect exports for which the economy is significantly dependent.
If China ends up at the helm as the new world currency standard .... The US dollar could be in for a heckuva bumpy ride ..... if not terminal ... and Japan could be on a much better financial footing..... at least for a while.
The Nikkei-225 closed up 2,20%.
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