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Thursday, January 07, 2016

Don't look at your 401-k today




Among my wacky theories is that man cannot kill the planet be it through nukes, overpopulation, global cooling, global warming, or climate change.

Another is that just as you should not start a land war in Asia, Asians should not start a land grab in the United States, A quarter-century ago, Japanese investors started buying American land at outrageous prices. Their economy caved shortly thereafter and has not really recovered. When China began buying U.S. land, I knew the end was near -- for them.

So today is the fourth day of trading this year on the stock markets across the world and for the fourth time, China had to halt trading as the stocks fell too fast for comfort. Stocks there have lost about a quarter of their value in four days, and it still does not look like a good time to pick up bargains.

From Zero Hedge: "Following the collapse of offshore Yuan to 5 year lows and decompression to record spreads to onshore Yuan, The PBOC has stepped in and dramatically devalued the Yuan fix by 0.5% to 6.5646. This is the biggest devaluation since the August collapse. Offshore Yuan has erased what modest bounce gains it achieved intraday and is heading significantly lower once again. Dow futures are down 100 points on the news."

The Chinese economy is cratering while our own still has not recovered from the 2008 collapse. Europe is being raped by Muslims and the price of oil has thrown another log on the bonfire that is the Middle East.

And nearly half the Democrats think 90 percent-taxer Bernie Sanders is the answer..

4 comments:

  1. An some what the Chinese yuan to replace the dollar as international currency. How would that work out?

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  2. I won't be looking at mine for a couple of months. Thank heaven I don't plan to touch the money for a few years.

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  3. I have been amazed that the dollar is still a very strong currency. With oil prices down impacting the Canadian economy, my savings in Canada from a 2 year stint working in the oil fields in Alberta has gone from par to the US dollar to the CA dollar to being down 27%; and my job disappeared too. About 300,000 jobs in the energy fields in North America have disappeared. Previously, the energy field was the major bright spot in the recovery from the Great Recession. Now what?

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  4. Perceptive of you to notice the similarity in trajectory between Japan and China. Both made the mistake of making too much of a good thing. One thing about the USA I've noticed is that while we have engaged in protectionism we have never gone whole hog for mercantilism. If we ever do it will mark the beginning of a collapse we will never recover from.

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