Make time to watch this video it explains the things Banner has been telling you . . . As the BoJ prepares to thrill us with even more in its latest policy meeting (or not) and with Amari-san now jawboning JPY to some extent to try control the soon to be out-of-control chaos in JGBs, it is worth taking 20 minutes to comprehend just what all this extreme policy action means. The following brief presentation covers it all in a Kyle-Bass-ian facts-and-fallacies manner, Christine Hughes sums it all up perfectly, for Japan, “The Math Is Stacked Against Japan – It’s Not ‘If’, It’s When.”
http://www.youtube.com/watch?feature=player_embedded&v=AR3TyfKTeNE
As we have been saying if you have borrowed in Yen and don’t rush pay it back (yet) — take whatever cash you have and buy dollars and US blue chips, Energy, Agriculture and gold. (wait on gold with large lump sum additions until the dollar takes off).
Why will the dollar will soar to new highs? First, Japan above and second, stop and look at Europe. The smart Europeans will move their cash to the USA before they can’t get out or go to Asia, maybe better. But the bottom line – it is the dollar that is becoming the ONLY game in town. Gold will be held back initially as DEFLATION continues my guess is 2014-5 gold will start take off again so my advice is to accumulate now on dips, even start a savings plan buying a set amount of gold and gold equities each month. Then ramp up on lows.
The banking crisis in Europe is worse that the US ever was. The US was a trading loss, Europe is a systemic failure that is more than $1 trillion in bad loans when the USA was $700 billion.
