Clearly, Japan has lost it.
And this week, they announced it to the world.
Their 3rd prime minister in less than two years, Aso entered with a 75% approval rating, now, less than one year later, his popularity sits at a tiny 9.7% approval.
9?!
A single-digit approval rating.
The Japanese Finance Minister, allegedly "drunk" while speaking on camera at a G-8 meeting in Rome, resigns due to "health" reasons. The other G-8 countries are taking the global financial crisis seriously.
It was reported the day before this event that Japanese GDP fell 3.3% for the quarter. In three months. For a developed economy, a 3.3% decrease in GDP in one year is serious cause for concern. This is an annualized rate of 12.7%.
They have allowed themselves to become vulnerable due to a major drop in exports.
For years, the Japanese government has constipated and rudderless -- no vision, inept.
Japan's lost it.
Tuesday, 17 February 2009
Sunday, 8 February 2009
How to hedge against the coming economic / currency collapse in the US?
Where we are right now, there is no rule book. It is entirely possible that more companies will collapse (financial and non-financial), unemployment can spike into double digits and that a flood of money into the system, in an effort to re-kindle a constipated financial system, may spark major inflation, the like we've not seen in 25 years. This inflationary rise - too many US dollars - will reduce the value of the US currency. What can you do now to protect yourself and your investments?
1) Move into non-US dollar investments. Choices: the UK Pound, the Japanese Yen and the EU Euro. The Euro is fast becoming a go-to currency
2) Convert your currency in gold bullion. Gold has long been a hedge against inflation. And with so much uncertainty in fiat currency, it's not a bad place to be.
1) Move into non-US dollar investments. Choices: the UK Pound, the Japanese Yen and the EU Euro. The Euro is fast becoming a go-to currency
2) Convert your currency in gold bullion. Gold has long been a hedge against inflation. And with so much uncertainty in fiat currency, it's not a bad place to be.
A False Economy
Easy credit. Too much credit. Lax lending practices.
This easy credit consumer created a false economy in the United States for years and this impacted the global economy.
-Richard Yamarone
Chief economist at Argus Research Corp in New York.
American consumers had access to too much credit. This credit was used. Consumer debt rose dramatically over the past ten years. This credit was extended to the housing market. Not all of this credit was bad, though. This credit expansion sparked a housing boom as more and more people purchased real estate. Greater demand than supply caused healthy increases in property values. Consumers, keen to keep spending, borrowed this newly created equity in their homes. Over many years this caused manufacturers and producers to scale up to meet the market demand. They produced more, they hired more people and they made more money. Share prices rose. Investors gained. However, these profits and gains were false.
When the banks and financial markets collapsed, this was exposed. Those hired shouldn’t have been hired. Last hired, first fired. Profits and growth were false. The market is now taking back. Don’t see it as decline. See it as a restoration.
Some people, me included, could see this coming, one day. As far back as 2003, I was shocked to read about the magnitude of American consumer debt.
The grey bars in the above chart indicate periods of recession.
The present level of US consumer debt stands at around $15 trillion ($45,500 per household)
This easy credit consumer created a false economy in the United States for years and this impacted the global economy.
”A few years back banks would lend to anyone who could fog a mirror.”
-Richard Yamarone
Chief economist at Argus Research Corp in New York.
American consumers had access to too much credit. This credit was used. Consumer debt rose dramatically over the past ten years. This credit was extended to the housing market. Not all of this credit was bad, though. This credit expansion sparked a housing boom as more and more people purchased real estate. Greater demand than supply caused healthy increases in property values. Consumers, keen to keep spending, borrowed this newly created equity in their homes. Over many years this caused manufacturers and producers to scale up to meet the market demand. They produced more, they hired more people and they made more money. Share prices rose. Investors gained. However, these profits and gains were false.
When the banks and financial markets collapsed, this was exposed. Those hired shouldn’t have been hired. Last hired, first fired. Profits and growth were false. The market is now taking back. Don’t see it as decline. See it as a restoration.
Some people, me included, could see this coming, one day. As far back as 2003, I was shocked to read about the magnitude of American consumer debt.
The grey bars in the above chart indicate periods of recession.
The present level of US consumer debt stands at around $15 trillion ($45,500 per household)
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