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Thursday, April 4, 2013

Fighting Fire With Fire Produces Godzilla-Like Outcomes

While "fighting fire with fire" (fighting crippling, historic, and failing debt burdens with unprecedented currency devaluation and stimulus - $1.4 stimulus announced today by Japan) extinguishes oil well fires with ease, it tends to produce Godzilla-like (destructive) outcomes when used as financial/policy solutions.  Since financial history apps are neither widely available nor immensely popular to the generations using App Stores, failure of today's "fighting fire with fire policy solutions" will surprise, shock, and financially punish all but the select few that understand the driving force of change.  History has shown us over and over that change flows not from public policy but rather forces described as the invisible hand by Adam Smith in Wealth of Nations; this is the reason why the select few accumulate precious metals during periods of change despite the hype and disinformation.

Headline: BOJ to pump $1.4 trillion into economy in unprecedented stimulus

(Reuters) - The Bank of Japan unleashed the world's most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.

New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014 in a shock therapy to end two decades of stagnation.

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