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Debt Makes You Dumb, Japanese Edition

April 2, 2014

This post takes us through how debt leads and money printing leads to a weaker currency that in-turn increases exports. Unfortunately this results in greater and great debt and the citizens loosing their savings. To respond the government reacts by raising taxes. However when taxes are raised economic growth slows and now the printing of money is not as affective. Finally the citizens open up their eyes and realize the hole the country is now in so they try to preserve what capital they have left. What do they do? They flee into hard assets. Jest like the Japanese are currently doing.

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