Saturday, March 26, 2011

I didn't Know This

© MMXI V.1.0.4
By Morley Evans

"But what is the yen carry trade? Put simply, it is borrowing at low interest rates in yen and using the loan to buy higher yielding assets elsewhere. During the past decade, the trade has become a “staple” for many investors, says William Pesek Jr on Bloomberg. Perhaps the most popular form of the strategy exploits the gap between US and Japanese yields. Anyone borrowing for next to nothing in yen and putting the money into US Treasuries (US government bonds) has received a double pay-off: from an interest rate difference of more than three percentage points and from the dollar’s rise against the yen. Investors make their profit when they reverse the trade and pay back the yen loan."

Oh. I didn't know this. Did you? There are so many things I don't know.

The central bankers are busy "printing money" like crazy. They have been "printing money" for decades, but they have been going crazy since the world-wide financial meltdown. They say not to worry. They have borrowed and spent our way back to economic recovery.

Canadian politicians are congratulating themselves on their wise policies. Prices are rising. Incomes are rising. Compare prices today with prices ten years ago, or five years ago. Some in Saskatchewan are richer. They are the smart ones. They are doing well. Houses cost five times as much here as they did a few years ago. Top government bureaucrats are paid over $500,000 a year. Everything costs more. "The government has to compete with the private sector to hire clever people who keep the machinery of government running." The politicians, whom the people elect, work for these "civil servants" not the other way around. We live in a cryptocracy, not in a democracy. This kleptocracy is run by kleptocrats. They are parasites: thieving bastards who could not get an honest job anywhere. Wake Up!

Why don't we already have hyperinflation as the Germans had after WW I? (Then, Germans pushed a wheelbarrow of Deutschmarks to the store to buy a loaf of bread. Many Germans didn't have Deutschmarks or a wheelbarrow. Then, they got Hitler and things improved for a while.)

We will have hyperinflation according to Gary North. It's coming. Does anyone remember stagflation in the 1960s? Since then, the financial geniuses have been very busy. They are very clever, you know, but what they have done will have consequences. A financial tsunami that will swamp the world like nothing before is on the way. Remember the financial meltdown? It was just a preview. A Biblical reckoning is coming.

Maybe the world will get honest money and get rid of the whores who run things now. Probably not, but we can hope. You should head for high ground, if you know where it is. I don't know, myself, so I can't tell you.

Here's Gary North:

Do you remember when the tide went out? It went way out. No one has ever seen it go out that far. It has been a good time to walk out where the ocean used to be and pick up shells. Can you see that glimmering white line far away in the distance? I wonder what that is? Very pretty. It is such a nice warm sunny day, isn't it?

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