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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj


Saturday 19 January 2013

excellent interview with Doug Casey

http://www.zerohedge.com/news/2013-01-18/doug-casey-we-are-living-middle-biggest-bubble-history

 "the USD is just an unsecured liability of a bankrupt government")  

3 comments:

  1. Shorted Japan for the first time in my life on FRIDAY.

    What is your view of -10% currency decline, 2% inflation target by summer, and ZERO for interest rates?

    Who will fund their 200%+ debt to GDP when you are guaranteed a loss of investment value on the currency translation? They may make Greece situation look quite infantile.

    -TigerPack

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  2. Hi TP ,hope you are well. Kyle Bass is a big proponent of an imminent fiscal crisis in Japan and I have to say it looks pretty grim.The "short yen" trade looks a real winner to me,equities less clear because when I was active in japan the big refrain was that Japan needs inflation in order for pricicng power to return but obviously that could get out of hand very quickly.Im not so in touch with japan as i used to be but all the anecdotal evidence suggests Japan continuing to lose ground to Korea and other asian countries especially in electronics

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  3. I shorted EWJ (ETF 1x long JAPAN)

    http://finance.yahoo.com/q/ta?s=EWJ+Basic+Tech.+Analysis&t=2y

    The Nikkei rise is not quite as good, when you take your money out of the country with the collapsing currency.

    Yes, a small rise in interest rates (now seemingly guarnateed into the summer) will devastate government finances and refinancing needs.

    -TP

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