If you want to understand where the economy
is headed, look to Japan from 1990 to present.
Low interest rates coupled with a bad economy
spells economic stagflation. Bank of Japan (BOJ)
kept their rates low and thus enticed massive
borrowing of the Yen and investing those borrowed
Yen in other FX markets. This is called the carry
trade. Borrow for cheap and invest where interest
rates are high. Makes sense. Either the USD/JPY
or the GBP/JPY made you rich. It's only recently
this knowledge came out in the mainstream
but I profitted off of it in the past particularly in
the GBP/JPY where the interest rate differential
was over 12%. It was phat city.
But what it does to the economy of the lower
interest rate bearing currency is absolutely
devastating. All this cheap borrowing leads to
a lowering in purchasing power of that currency,
hence prices go up and production ramps up
as industry chases the rising prices. In Japan
however, they are a net importer, so this phe-
nomenon was not seen, but rather the opposite.
Prices rose as purchasing power declined, and
people wound up working longer and longer
hours in order to keep up with higher COSTS of
living instead of prices of products sold. Hence
the modern notion that the Japanese are hard-
working...no, they'd rather kick back at home
with their real families instead of the rent-a-family
they see from time to time.
In the USA, the same deal is playing out. We have
record low interest rates on Federal Reserve Notes
(colloquially known as US dollars), relatively high
rates in the Aussie dollar....gee, what do you think
traders are gonna do?
Plus, just like in Japan, America is a net importer,
will never pay back its debt, and its industry has been
offshored to China, Phillipines, Vietnam, and India.
So as a net consumer with a rapidly deteriorating
purchasing power, look to the past two decades in
Japan for a clue as to what might happen here.
America used to be the world's largest creditor nation.
America is now the world's greatest debtor nation and
it's not because the people are stupid or lazy (although
many are), it's primarily because of the dubious
activities of the Rothschilds, Warburgs, and the
international banking families who own the private
Federal Reserve, which is no more federal than
Federal Express. It's a private corporation that is
feeding off of the blood, sweat, and tears of largely
an ignorant mass of people who have been
deliberately dumbed downed through the Rockefeller
owned public educational system.
Check out Alex Jones, or Max Keiser, or George Gordon,
or Ron Paul to listen to concise, up-to-date, and pertinent
information on current events, history, and the shadowy
elite who run things from "behind the curtain". And if
you're wondering if this is all conspiracy theory, please
note, the men I just listed only talk about conspiracy facts.
That is, conspiracies which have been proven by scientists,
reporters, and whistle blowers who are also covered by your
mainstream news. The truth is hidden in plain sight and
these guys are simply connecting them. Once you see
what they're talking about, the truth behind the con-
struction industry will be a matter of common sense.
I have dodged many bullets after having listened to these
guys for many years now. Hope you can do the same!
Joe
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