My thought on JPN – is it the QE canary in the QE coal mine?!
JPN rates instead of going down have shot up. 10 yr from .353 to .98, now .85 (TRIPLED) while their market shot up 11806 to 15943 (35%) back to 13015 (over 60% retracement).
Crazy free money in JPN isn’t working. What now?
What now for USA?
—— So let me expound upon this, Warren Buffet said the USA could have deficits as far as the eye can see as long as they don’t exceed 3% of GDP. Now I have great respect for WB but he is simply FULL OF SHIT in this regard.
Compound interest ALWAYS wins. When the Fed get’s off the QE gas pedal and rates climb, our deficits will balloon because of the increased costs to SERVICE the debt (no pay down, just interest).
Tack on higher borrowing costs = more debt = lower credit rating = higher borrowing costs = more debt = lowered credit rating (ya see the pattern!)
All this debt http://www.usdebtclock.org – note the bottom line (also look at global debt page – scary) will eventually come to a head… I don’t know what will happen but one only needs to look at Greece, Portugal, Spain, Italy and Ireland (euro PIIGS) to at least get a glimmer of the potential for negative GDP, 25%++ unemployment and riots in the streets.
Now we may know why the DHS has purchased Billions of rounds of ammo in the past year – literally they have several bullets for every single citizen of this fine country. And contrary to the head of DHS’s stupid press release, these are hollow points and not for target practice.
Yeah, I’m still waiting for CONgress to get an answer to that idiotic press release *not holding my breath*. DHS is armed and loaded. btw, when DHS purchases a fully auto assault weapon, they call is a PDW. PDW = personal defense weapon – but when we own a semi-auto they (BO & CO) label it an assault weapon?
One question – if I have to wait for the police to arrive, sometimes 20 minutes where I live, shouldn’t I have the SAME weapon they will bring with them and use to protect me??!! Why shouldn’t I use the SAME weapon to protect myself? Because in 20 minutes, whatever happened has happened and the police are only there to write up a report….
Food for thought ~ peace