Thursday, May 30, 2013

All Eyes On Japan!! They’re Headed For The Mother of All Crashes

Is the euphoria starting to wear off? Japan is headed for collapse and people are rushing into USD lately. 
I have not seen the USD this strong in 5 years at least..
http://www.xe.com/
http://www.reuters.com/article/2013/05/13/us-markets-global-idUSBRE88901C20130513
Declines of 30% to 60% have taken place EVERY TIME here for 20-years!

CLICK ON CHART TO ENLARGE
The hottest index on the planet, up over 50% more than the S&P500 over the past year is facing a resistance line that has saw it decline from 30% to 60% every time for the past 20 years.
Many of these declines have ended up impacting the S&P500.
Can the Nikkei do something different this time at (2)?
http://blog.kimblechartingsolutions.com/2013/05/declines-of-30-to-60-have-taken-place-every-time-here-for-20-years/
Japan’s Debt Problem Visualized
A short, visual explanation of Japan’s debt crisis by Addogram. Visit http://www.addogram.com for large, data-rich prints on financial history.
The US Debt clock is still on fire !
http://www.usdebtclock.org/
Columbia Economist Dr. Jeffrey Sachs speaks candidly on monetary reform [Full version speech]
We’re Headed For A Crash: Let’s Go Medieval Instead
The only option in the end.
These nervous ones are looking ever more closely these days at the distant nation of Japan, where an interesting scenario is playing out: the last days of a giant industrial-technocratic economy. The story there is actually pretty simple if you peel away the quasi-metaphysical bullshit it comes wrapped in these days from astrologasters like John Mauldin and Paul Krugman, viz. Japan has no fossil fuel resources. Zip. You can’t run their kind of economy without the stuff. And they can’t.
Japan is crapping out, as they say in Las Vegas. Tilt! Game over. As this happens, Japan issues a lot of distracting financial noise that involves evermore “creation” of their own “money,” and the knock-on effects of that, but it’s all just noise.
Japan’s only good choice is to go medieval, that is, to give up on the rather hopeless 150-year-long project of being an industrial-technocratic modern super-state, and go back to being an island of a beautiful artistic hand-made culture. I call that “going medieval,” though you could quibble as to whether that’s the best word for it, since I’m not talking about cathedrals or crusades.
One of Japan’s other choices is to “go mad-dog,” something they actually tried back in the mid-20th century. It didn’t work out too well then. The Japanese leadership is making noises about “re-arming,” and a nice state of conflict is already simmering between them and their age old rivals-victims next door in China, a country that has lately enjoyed the upper hand in the industrial-techno racket (though it will be faced with the same choices as Japan not too many years hence).

http://www.businessinsider.com/lets-all-go-medieval-2013-5

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