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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (66508)	7/8/2007 12:45:14 PM
From: Chispas	Read Replies (1) \| Respond to of 116555

Gold Eagle - Gold in Japan (Yen) - (SeattleSun) Jul 08, 12:13 If the US Fed wants lessons on how to utterly destroy a currency, it can look to Japan. Despite the latest downleg in the secular US dollar bear, the Bank of Japan still managed to create an impressive 18% loss in the yen relative to the dollar. It's a race to worthlessness! Naturally this has made gold look exceptionally strong in Japan, up 92% since early 2005. And yen gold just made its latest bull-to-date high in mid-April. While it has indeed been consolidating, the eroding yen has created a rising wedge in Japan gold. Japan is destroying its own currency through irrationally low interest rates and excessive money-supply growth in order to subsidize its export industry. This is incredibly stupid. Free markets only thrive when monetary policy doesn't play favorites between savers and debtors. Since savers are getting slaughtered in Japan, more and more are flocking to the immutable stability of gold. The spark that ignites the next global gold upleg could very well prove to be Japanese investors starting a heavier migration into gold to protect their enormous savings. GRAPH gold-eagle.com From Adam Hamiltons piece this week were he reviews gold in 10 different countries/currencies. gold-eagle.com ....................................