Hi Maurice, <<Japan should go shopping>> and if they do, and do so on Euro luxury, Chinese productive assets, Australian beef, and Thai retirement resorts, the result for the USD would be ...? Rise of Euro, Yuan, Koala, and Baht, conversion of a bit to gold and gold?
The interesting thing about reserve and its conversion is that its effect is at the margin, focused, concentrated, distilled, drawn-out, public, and thus highly destabilizing to value of the reserve (as you correctly noted), just as when the central banks announced that they are and wanted to sell more gold … the rest of the global investing electorates jump on the action and help the deluge along through a very narrow channel within a very short time span.
I do not have any advice for the Japanese electorates, because I am not in their shoe, nor am I the owner of their problems, however effected I may be by collateral damage; but as the nation is getting old fast, needing to take care of old folks, it would appear they have a few options with their Yen
(a) invade some country and import some slaves
(b) invite some immigration and pay for assimilation
(c) buy some country, establish some retirement villages, encourage emigration
(d) invent some robots to do the work
As of now, Japan seems to have chosen option (d). Imagine the productivity increase if services can be robot-enhanced and expert system boosted. Imagine all the people that would be able to play on-line Unreal Tournament and post to SI as a result:0)
Chugs, Jay |
