The DJIA is up 91 as I post
Posted on 06/13/2013 10:51:19 AM PDT by blam
FELIX ZULAUF: Japan Will Cause The Next Big Global Crisis
Steven Perlberg
June 13, 2013, 11:11 AM
For weeks, Japan's stock market has been in an absolute freefall.
Last night the Nikkei fell to 12,445, down 6.4%. But it wasn't long ago that commentators were rejoicing in Abenomics – the policy moniker for Japan's monetary stimulus and government spending plan – for its bold three-pronged approach to juice the Japanese economy.
Now, with the Nikkei taking a turn for the worse and the yen strengthening, it appears Abenomics has not had the intended effect.
Felix Zulauf, swiss hedge fund manager and macro thinker, goes even further. He thinks Japan will spark a global crisis within the next 18 months.
Zulauf spoke with Financial Sense:
I do believe that this will be the root cause of the next big global crisis whenever it breaks out, probably sometime over the next 12 to 18 months or so. First of all, I think the Japanese situation is very dangerous because Japan’s tax revenues, when you look at the numbers, they have to use almost 50% to service their government debt—their Federal government debt. So if interest rates rise further, Japan is basically bust…I think this is a very dangerous thing that the Japanese are starting and I believe it will most likely be the trigger for the next big global crisis in financial markets and the world economy.
For years, the Bank of Japan has been a bastion of economic conservatism. Not anymore.
(Excerpt) Read more at businessinsider.com ...
The DJIA is up 91 as I post
Now, with the Nikkei taking a turn for the worse and the yen strengthening, it appears Abenomics has not had the intended effect.
This is total nonsense. Abenomics wasn’t and hasn’t been built in a day, its still in its formative & planning stages and we are only just now getting to the strategic implementation phase.
Small blips on the screen are going to occur that doesn’t mean its over, give it some time to get things going.
They are not going to pour billions into something and then stand by and let it falter, things haven’t even really started happening yet but already banks are scurrying around trying to distribute money as we speak, and there is all sorts of encouragement to companies to up salaries, bonuses and employment.
Why is the ¥ strengthening against the $ ??
I don't know...it shouldn't be, should it?
18,000 is still less than 50% of the peak 39,000.
BOJ is pausing...they are sucking in the USD shorts...
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