– And, so it begins………….. (ZeroHedge, Nov 1, 2014):
Courtesy of the StealthFlation Blog
By eviscerating the U.S. Bond market, they have completely destroyed the time value of money. Thus, there no longer exists a viable and productive term deposit on savings.
Moreover, the very same savings deposits provide an indispensable structural foundation for capital formation, when leveraged through a fractional reserve banking system.
Those relatively riskless returns are gone forever, and what we are witnessing in Japan today is a desperate and perverse attempt to recreate the same secure income streams, which are fundamental to a life spent prudently saving one’s hard earned wealth, via the Nikkei Stock Averages.
Regrettably, equities can never replace the security of steady moderate income provided by a normalized Treasury Bond market.
Furthermore, in an environment of flat line growth, the now reflated equity market will not only be unable to generate those same reliable steady returns over time, but will also put those very savings themselves completely at risk.
They have built a Doomsday machine, and thanks to BlackRock’s Larry Fink we are seeing it being fired up in Tokyo.
Make no mistake, the abomination is fast approaching our capital as well………….beam me up Scotty.
How do you feel about wiping out all your people’s savings?