Japan

Collin Kettell sits down with newsletter writer David Skarica in the Bahamas to talk about the markets. David is known for his contrarian views, and his knowledge of investments, economics and the markets in general. David has identified “four major investment themes”, which he has translated into actionable trades. In this discussion, David shares his … Continue reading

The impossibility of economic calculation in a fiat world The purpose of keeping accurate accounts is to quantify net worth at any given point in time – as well as the change from a prior date. It goes without saying that the measure used, money, should be constant if comparisons over time are to mean … Continue reading

Charts speak more eloquently than I can and they speak a brutal truth. Perhaps it is my scientific background or perhaps I appreciate the art that can be found in price charts. In either case, I prefer the message of charts to CNBC blowhards and other so-called experts. Anyone who currently has excess savings they … Continue reading

The feds called out all available hands. Over in Japan, they injected another 21 trillion yen into their economy. You understand why, of course. You don’t? Well, let us explain it.

Standard & Poors cut Japan’s debt rating while Moody’s warned that the USA’s triple-A rating was at risk. The IMF had harsh words for both nations. The report is from Canada.com: “In advanced economies where fiscal sustainability has not been a market concern, credible plans going well beyond 2011 need to be put in place … Continue reading

Many people like to look at Japan as instructive relative to the current situation facing the United States (and most of Europe). The current strong up move in stocks has been relentless. It has been no fun and of no use lately to eruditely point out how bad the underlying economy is and how bad … Continue reading

Gold’s bull market is starting to get warmed up again. The gains ahead in Gold are going to be greater than what we have seen since the secular bull market began at the turn of the century. Gold will continue to outperform general stocks, real estate, bonds and most if not all commodities. Paperbugs will … Continue reading

Remember that Japan is about 10 years ahead of the US, in terms of its economic crisis. The deflationary forces that have plagued Japan are now plaguing the US. Because of its domestic savings……

The US cannot finance its ever growing obligations from existing savings or foreign borrowing. The solution is number three: monetization.