Sunday, March 17, 2013

Japan inflation... It's going to get ugly

In Japan, the really heavy inflation is just beginning. Aiding in this is the appointment of a quite 'liberal' central bank governor, where we can expect Keynesian 'solutions' involving even faster inflation.


Of course, focus will be shifted away from the cause of price increases, which are monetary in nature, and shifted to the mere symptoms such as price increases themselves. The real problem is central bank policy, of course. But expect the proclaimed 'solution' to be anti-price gouging decrees and or limitations in price increases. All of this is to detract from the real issue which could not be avoided, because there's just all this money created that is waiting to enter the market.

There will be higher prices, somewhere, in some sector or several, possibly affecting all sectors even. We shouldn't assume that we know where the price increases will happen. But if history is a good guide, gold and silver will be a beneficiary, or safe haven, depending on how you look at things. My advice is the same: buy more gold and silver.

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