Elaine Supkis

WSJ Weighs in on Peter Schiff

Hello, Auto 44, you realize, my web address is next to my name.

On top of this, I have archives at three other places: emsnews.wordpress.com/
elainemeinelsupkis.typ.../
culturelifenewsii.blog.../

If you want, you can explore my site. Just look at the cartoons, they explain everything. And one other thing: people grossly underestimate the mess created by the Japanese carry trade. Many Americans who are not inside the investment banking community, probably never even heard of this thing. It is now gone and incidentally, our banking 'liquidity' vanished at the same time.

Now, the US is ZIRP and we are at zero interest rates only it doesn't work for us so hot since we are an importing economy, not a major exporting economy like Japan.

About gold: it is now going up due to desperation. When banks collapse, gold goes up. Double, triple. But it, too, can go down and do this with amazing speed. All we have to do is stop the 0% lending.

WSJ Weighs in on Peter Schiff

Generalized calling of events is easy. Calling them exactly is hard. Saying, 'There is a bubble' is easy. Explaining where the funny money comes from is hard. For example, the housing bubble was NOT local. It was NOT in America. It was GLOBAL.

Now, how was that possible? Someone was flooding the entire planet with lending! Usually, the lenders doing this have super-low interest rates. And who, pray tell, was that?

The Bank of Japan with its ZIRP loans! Duh! I predicted not only the date of the apex of the bubble correctly, I also correctly noted that it was global AND I accurately predicted that the funny money pouring out of Japan would shift towards immense take-over schemes which hedge funds and investment bankers dump epic loans on top of businesses.

I even accurately predicted the month the Japanese carry trade would end and also, that this would cause a freeze up of 'liquidity' as lending ceased to flow from Japan and the rest of the world.

I even figured out who would start the very violent unwinding of the Japanese carry trade and the rise of the yen: China. For China and Japan had a nasty spat in the middle of July, 2007. I must have been one of the few people [I read both Chinese and Japanese economic and diplomatic news] to notice that Japan told China, 'We will drive the value of the yen down to 120 to the dollar and then will flood China with this money!'

And China, fighting rising inflation, said, 'No way in hell...we are going to force the yen up to 100 to the dollar!' And they did and the carry trade unwound starting on August 15, 2007, one month after the diplomatic spat.

International trade is collapsing because too much credit was made from thin air. Schiff could see the vague outlines of what was going on but NOT the details nor the ultimate underpinnings and what to watch.

This is due to Americans and British being very ego-centric. They think they are the world's finance and economic powerhouses when they are both just leaves running in the waters going down the gutter in an Asian downpour.