Hello Nat, <<Here is a Godzilla play ... On December, 19, 2003 the Financial Times reported that the Ministry of Finance (MOF) “said it would raise the ceiling on the amount it could borrow for intervention by Y21,000bn to Y100,000bn ($930bn) for the period until March, and by Y61,000bn to Y140,000bn for the year starting in April.”
... Let’s put 140,000 billion Yen ($1.3 trillion) in a U.S. perspective. In round numbers it is about equal to next year’s Federal budget deficit, next year’s state budget deficits (all 50 states), and next year’s current account deficit, combined -- with enough left over for the pension plans of every hard-pressed steel and automobile manufacturer in the country.>>
I feel energized, alive, alert, ready to pounce, loot, pillage, and then abscond.
I have been preparing for this scenario as described by FT and am situated so Message 19625942
And so it was written [EDIT: Key words = ‘zero percent’, ‘dying anguish’]:
Message 16037941
<<July 6th, 2001
… No use for emergency cuts. Regular cuts will do as well; because the market has already discounted a zero percent policy in the planet's largest creditor country, and thus implicitly the market has already discounted at least another 250 basis points of cuts in the largest debtor country. The market has not yet discounted the collapse of the principal embedded in the few mega shares (GE, FNM, C), the debt market and the dollar.>>
... and ...
Message 16212324
<<August 15th, 2001
… The final attack could involve a shock troop attack softening down the Dollar or a serious Debt explosion deep within a nation, a corporation or a even a fund. The follow-on attacks will most likely involve the simultaneous Deflationary ‘cratering’ of the real estate funding bubble and the final bleeding of gushing hope from the quiescent population. The exact scenario does not even matter given the weakened state of the defending infrastructure and inadequate cash and FED rate ammunition supply.
Any brightening of hope in the interim is just a fatally toxic fantasy wrapped in shimmering hope tied with comforting propaganda presented on a platter of official deceit. Swallow the fantasy, financial suicide results.
… I am being optimistic and am of course assuming that all the market noise and propaganda smoke is not in fact camouflaging an inflection point connecting Silicon Glory to an as yet unknown “next abracadabra”, as the Rust Belt was once transformed into Silicon Glory but accompanied by much dying anguish and birthing pain.>>
… and …
Message 19129028
<<July 20th, 2003
… I am in fact thinking of adding more to my gold/gold share positions based on the same logic. Here is why …
(a) I believe we are at the beginnings of globalized equalization of cost, whereby many income levels will gravitate toward the pervasive global level;
(b) I believe Greensputin and Bernankaput are trying to reduce the dying anguish of the old order, by printing money, and in effect, unwittingly, expediting the birthing of the new order, also by printing money; …>>
… and …
Message 19587810
<<December 11th, 2003
Ramsey, <<How long can the BofJ keep this up? Do they have a never ending ability to buy dollars?>>
I think the answer is yes until it becomes no, as Japan runs down its pool of savings via monetary inflation, for the greater good of the world ex-Japan, give birth to a World Not As We Now Know It ("WoNawNoKi") and scream the cry of dying anguish.
I figure we should modulate our thinking by following the money, watch where it passes through, see what it does and doesn’t do, and where it eventually ends up.>>
In any case, if Japan goes through with its script, and US responds likewise, Japanese S5B (see definition achamchen.com ) savings will end up in the pocket of W3C in China via the US J6P, to the extent that J6P refuses to save himself by saving a bit of the transfusion of Japanese wealth.
I fear the worst, but am also excited. We will end up most likely either much richer or terribly poorer; there seems little space for middle ground.
Chugs, Jay |
