Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the possibility of a coming Euro collapse. (See the Forex section.)
Japan will reach 2% inflation target and can begin reducing stimulus in five years, BOJ’s Kuroda says. JWR’s Comments: The Japanese Nikkei Average fell from a high of 40,000 at the end of 1989 to under 15,000 by 1992. Then their real estate prices followed suit, with a 60% decline. With the exception of a few years and the effects of artificial stimulus, the Japanese economy has been in a demographics-driven DEPRESSION for more than 35 years. They were the first country to attempt ZERO interest rates, for stimulus. And even that hasn’t worked. So now we are told that “just five more years” of artificial stimulus should do the trick! The sad fact is that the Japanese economy is a basket case. Japan is a country where they sell more adult diapers than they do baby diapers. If you attempt to fight a demographic sea change with monetary policy, you will lose. You fight a demographic war with demographic weapons. Unless the birth rate in Japan increases radically, by the year 2100, Japan will probably become a quaint retirement haven province of China. The United States and the EU nations should learn from Japan’s mistake and ban abortion! A birth rate that does not exceed a mere replacement rate is tantamount to national suicide, in the long term.
Talk about two divergent views! Compare these articles:
(I can safely state that they can’t both be right!)
CNBC video: Commodities are going wild and there’s even more room to run… (Note: Todd Gordon is a die-hard chartist.)
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Forex (Euro Collapse):
Martin Armstrong: Will the Euro Survive by 2021?
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The CPA Journal: Planning for Collectibles
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Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!