Bank of Japan

World Gone Mad: Japanese Investors Edition

Will we ever learn? Bonds which never pay back principal, yield only 1%, and are converted to equity if the issuer gets into trouble (that is, at exactly the time when you don’t want to own their stock), are being enthusiastically snapped up by Japanese investors.

Ganging Up On Gold

Gold remains the asset Wall Street loves to hate. It is currently under pressure due to the recent increase in rate hike odds and there was definitely a need for stale long positions to be cleared out. When we see the mainstream gang up on gold so quickly though, we tend doubt that the bears will be correct. Of course we have no crystal ball either, but we remain convinced that the monetary experiments of recent years will end quite badly.

Former German Central Banker Reveals "The Real Danger In Finance"

"These distorted markets are increasingly hostage to unfathomable political risk...the real danger in finance is the not one that tends to be discussed: that banks will topple over (as they did in 2008). It is, rather, the threat that investors and investment groups will be wiped out by wild price swings from an unexpected political shock..."

"Pounded" - How Not To Manage A Fiat Currency

The Bank of England’s inept monetary policies under Mark Carney’s governorship seem certain to expose the fragility of fiat sterling to wider public attention and skepticism. If the consequences weren’t so serious, we might thank him for unwittingly toppling the status quo. But the inevitable crisis, many times worse than that faced in 1975, cannot be embraced even by the most extreme financial masochist. This is why people in Britain and America will increasingly find solace in gold.

Kuroda Defends BOJ Credibility, Mocks Fed And IMF Economists

This past Saturday October 8th, Bank of Japan Governor Haruhiko “Peter Pan” Kuroda delivered some prepared remarks on its new QQE with yield control (see here and here) at the Brookings Institute in Washington DC. The conference was attended by "luminaries" like Jeffries’ David Zervos, Princeton economist and Hillary supporter Alan Blinder, as well as many members of the press.

IceCap's Keith Decker Lists Three Scary Movies: "Jaws", "The Shining" And "The Rise Of Interest Rates"

When this crisis accelerates, investors will run away from the bond market and seek safety in stocks, USD currency and gold. It will be a scene, unlike any you’ve seen before and understanding why it will happen and having the correct investment strategies will not only make you happy and calm – it will also make you the star at dinner parties. And when others ask you how did you know, you begin with the least talked about factor in the investment world – interest rates.