May 3, 2013

How Does IT All End? IT is Ending Now, Right Before Our Eyes

The answer is that it is ending now, right before our eyes, it is ending in the likes of Spain, Portugal, Iceland, Cyprus and now in Japan. There is no ‘single’ outcome.

"Sometime during the last six months, the Government of Japan and Bank of Japan did away with the artifice of modern era central banking in one fell swoop. No longer is there a separation between ‘church’ and ‘state’ – between governments and their respective central banks. For the first time in history
, a leader in a ‘modern’ economy has been elected on a platform of ‘powerful monetary easing’. In the last six months, the world has been introduced to the term Abenomics named after recently elected (and former) Japanese Prime Minister Shinzo Abe’s brand of economic management.

Do you want to know what Abenomics is? In a nutshell it the principal of borrowing money that you do not have to add to already crushing debt loads, while demanding that the Bank of Japan purchase large quantities of Japanese Government Debt

in order to keep the debt financeable. In other words, printing money and spending it in order to create economic growth. Nominal economic growth anyway. "

Read this if you have a morbid interest in how the global financial markets work at the Keynesian end point.