Thursday, April 4, 2013

Samurais being reborn in Bank of Japan?

Samurais being reborn in Bank of Japan? The Japaneses government has decided to declare war on the Yen.Now this is old policy,and not a wise one,the believe that you create inflation to cause prosperity is bit crazy to me and history shows you that you can have inflation without growth or little growth, just look at U.S in nineteen seventies,yes some growth but was wipe out by inflation,it took President Reagan and FED Chair Volcker to save the day.But Bank of Japan believes by buying more bonds(God Know they own already far too many bonds) and even ETFs and REIT and will spur wealth,but it's old game that doesn't work.Japan's problem is aging population and other counties should take note an aging population is problem in Europe and China.I think Malthus and his essay on the principles of population just might be wrong!
Don't cry for me Argentina I'll cry for you.Once again Argentina is verge of bankruptcy.It's amazing Argentina should be rich country but because misrule it's always seems to be drowning in debt.A lesson for all countries population growth is important,especially went country has huge social welfare and pension,medical care obligations  then you must have young people to fill the jobs of older population leaving the work force otherwise there a void and wealth is drain not created.
Watching Bloomberg T.V there always seem to have Elon Musk(the most overrated businessman in the world) and Mohamed El-Erian who is very measured in his speech,hence,he usually says nothing.
Reading in the Wall Street Journal today that Peabody Coal is being sued by credits of Parrot Coal,which was a spin-off of Peabody.Parrot Coal was Eastern part of Peabody,hence,it mines where underground more environmental problems then western mine(in the U.S) of Peabody's.Despite taking beat on Peabody stock(it's very low) and Obama war on Coal I still like Peabody stock especially that these low prices.Peabody not only owns mines in the U.S but also Australia and think there are negotiating with Mongolia for operations there too! I think while demand coal in the U.S is dropping it's  going to pick up world wide once we have a stronger recovery taking place,I can see big demand in India and China.

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