JudeJin

Recent Market Activity: Gold, USD, China and Japan's Sovereign CDS

gold crashed not because of volcker.
there were many reasons:
1. burst of oil bubble
2. gold finished its bull run, reached its theoretical value according to gold standard.
3. china began to export deflation
4. IT revolution
5. rising stocks and declining gold mega trend.

volcker won't be effective now. some other volcker will be effective only when gold will have finished its bull run.

Economic Parallels Between U.S. and Japan

the biggest challenge facing US and Japan is how to deal with the 2 billion chinese and indians that entered the global competition since early 1980s.

special interest groups in both countries seek to dampen the impact of this increased competition on themselves by making all the other people suffer more. thus we see protected industries, like wall street, flourishing and taking home gigantic bonuses, while other ordinary citizens take on the brunt of the impact.

without any intervention and special interest groups meddling in the process, the pain would have been spread out much more evenly across all sectors and among all citizens in both countries.

misallocating resources, gains and pains, will make both countries much less competitive in dealing with this challenge.

india, especially china, will end up to be the biggest winner.

the biggest enemy is not the opponent, but always is within oneself.

The Performance of Japanese Companies: A Growing Connection with External Demand

when growth is dependent upon credit expansion, it can't be sustainable. the current credit system is a ponzi scheme that will implode sooner than we all can imagine.

The Demise of Japan as an Economic Power?

or put in another way, the japanese miracle was a great hallucination resulted from structural lack of competition when the chinese were shut away from the competition.

when the japanese wake up to the reality, things probably will be very very dire. bankcrupt government, failing economy and currency.

The Demise of Japan as an Economic Power?

the real problem underpinning any economic problem is there's not enough work for everyone because the labor can't clear on the current price! japanese are working hard on after hour drinking binges and spent a lot in "snacku". the government intervention has kept the real economy from adjusting to the new labor supply demand equation after china joined the global competition. same problem with the USA.

when i was a teenage in shanghai, my parents was making less than 1000 dollars a year. but once china joined the global trade, hey, a lot of people are making 50K USD a year now, or even more.

in order for the japanese and the americans to compete, the labor market has to clear on market price without any intervention. intervention to keep the wages artificially high will result in higher unemployment. that's a rule of thumb!

Japanese Investors Saying 'No Thanks' to Government Bonds

with gold taking up the spot light, the japanese would be too dumb to ignore the merits of gold over 0 yielding JGB. smart institutions will JGB quietly too.

Japanese Investors Saying 'No Thanks' to Government Bonds

the japanese can save their slumping economy by opening up their turkish saunas to tourists. just a joke.

Japan's Economic Outlook Is in the Eye of the Beholder

japan is sick in the core

The Japan Problem

watch out for japan's zombie banks! they are as rotten as citibank!