Tuesday, September 28, 2010


Law of diminishing returns.....velocity of money NOT THE SPEED OF LIGHT.

*click to enlarge all charts.

WHEN Japan needs to fund it's debt it can offer as little as 1% for 10 years and they always sell out the debt.....BECAUSE it's not about the yield....it's about buying the YEN! which has stayed a strong currency so any bonds bought in YEN have appreciated in value.....how about Bonds dennominated in $'s? OUCH!!
Are we setting up for a fiat crisis? competitive devaluation in attempt to stimulate exports? Anybody have any questions on why gold is hitting new highs? Maybe due for brief pullback, but those letter writers, some calling for HUGE pullback to $600-$800 don't have many subscribers left.....and don't understand the back drop.

FED actions have supposedly put a PRICE LEVEL GUARANTEE on the stock market, so that is saying it does not matter where DEMAND is coming from.

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