Japan Will Take the World’s Breath Away
The Intel Hub
By M.N. Gordon
March 27, 2012
Last Sunday, in Long Beach, California, the impossible happened…it rained for the second consecutive weekend. Just ask anyone who lives here. That never happens.
We’re not complaining. Without the wet weather we would have never discovered the hole in the bottom of our shoe. Nevertheless, we bring this up to make the point that the seemingly impossible happens all the time.
Last August, for instance, something absolutely ridiculous occurred…during the summer twilight the world was preparing for mass inflation and mass deflation in tandem. This manifested for everyone to see when, in broad daylight, $1,820 per ounce gold and 1.98 percent 10 Year Treasury yields came into existence simultaneously. If we hadn’t witnessed this extreme and illogical price disparity with our own two eyes we’d say it was impossible. Yet it happened all the same.
By all accounts, what the world learned last summer was what happens when the Fed borrows vast quantities of money into existence and uses it to buy government debt. For a time, gold prices go up and bond yields go down. But what happens after such devious money games are played is what has yet to be discovered.
Perhaps, we will soon find out…