The BOJ devalued the Yen by 1% overnight and robbed the Japanese people of $300Bn overnight. Meanwhile, the bank robbers will go to jail while the lifetime savings robbers will probably get an award – or at least very cushy jobs in the private sector once they are done pillaging the people's money in the Government sector.
In our Member Chat yesterday, we were discussing the fact that we should take Japanese Corporate earnings with a huge grain of salt as they are priced in Yen and the Yen is down (up) to 101.62 to the Dollar today, from (and I am not kidding) 80 at Thanksgiving. That's up (down) more than 25% in 6 months and 80 to the Dollar was about where the Yen was last year as well.
So think about it – if you are a Japanese citizen and you had 80M Yen in your retirement account in November, you had $1M US Dollars. As we know, Japanese banks pay 0.25% for deposits, so effectively zero so today, those 80M Yen would be worth just $787,246.60. How's that for theft! This is how our Governments ultimately balance their books – on the backs of savers. The Investing Class is just fine, thank you very much, as the Nikkei has popped from 9,000 to 14,000 over the same period. That's up 55%. So the rich investors get much, much richer while those who try to save their hard-earned money get raped – and no arrests will be made!
25% of the Japanese people's wealth confiscated to give the top 1% a 55% boost in their portfolios. That's the way of the World folks. And don't go clucking your tongues at the Japanese folks, they are only trying their best to keep up with the US. whose Dollar Index (against a Global basket) is down from 120 in 2002 to 83 today – that's a 30% devaluation of our own savings in 10 years! Not just your savings, of course, anything you own that's priced in Dollars loses value unless it's inflation-proof and it's PRICE (not value) goes up faster than the Dollar falls.
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