GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Thursday, October 2, 2014

Short Japan -- The Yen's Cliff Dive Has Started : Tres Knippa

 Tres is a longtime successful Chicago Mercantile Exchange (CME) floor trader and he started a fund that is structured so the individual investor can short the Japanese Yen and Japanese government bonds. During this 30+ minute interview, Tres updates listeners about the Japanese economy and how GDP has come in under expectations because of higher inflation and because the Japanese government has just about doubled the VAT tax. Jason and Tres talk about how Japan has a basic math problem. Japan's debt principle will never be paid back but now Japan is struggling to pay the interest payments on its debt with artificially low interest rates thanks to financial repression and Japan's central bank manipulating interest rates down. Jason and Tres discuss the different possible ways Japan can keep the game going and avoid a bond market collapse. Jason and Tres talk about how Japan is going to end up a case study for why Keynesian Economics aka Mercantilism does not work and how the best case scenario for Japan is stagflation. Tres thinks shorting the Japanese Yen is a good hedge for Americans, gold investors and investors who think there will be much worse inflation all over the globe going forward.

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