Treasury’s Last Pillar Crumbles

In this month’s edition of Peter Schiff’s Gold Letter, Peter addresses Shinzo Abe’s plans to devalue the Japanese yen. In the aftermath of the fiscal cliff negotiations, Peter seems to be the only one examining the disastrous effects that Japan’s monetary policy will have on the US bond market.

“The yen hit a post-war high against the US dollar in 2011 and has remained strong. For sound-money enthusiasts, this has been cause for celebration. But for Keynesian demand-siders, it’s a crisis.

Rather than attribute decades of sluggish growth to an interventionist industrial policy, Abe and his cadres are blaming the strong yen. In response, Abe has called for the Bank of Japan to target at least 3% inflation.

For some time, the only saving grace for Japanese citizens who are unable to find jobs or secure financing has been that prices have been stable or falling. Abe intends to rob them of that salve while doing nothing to address the underlying infection.”

Continue Reading…

This entry was posted in Peter's Commentaries. Bookmark the permalink.

Comments are closed.