The deputy governor of the Bank of Japan admitted that if yields rise 1 percentage point and they will lose 2.3 trillion yen. This is just the tip of the iceberg. We face a tremendous nightmare. Interest rates have been brought down artificially so low to bailout the bankers, that they have really screwed the rest of society and their own future. There is no place to run for the end is truly near. With rates so low, the slightest uptick will set in motion a real disaster.
It is interesting that the majority of the press are not impressed with the new highs in the Dow. They are confused to say the least. Some look and think perhaps there is a recession, yet the market is at record highs. Economic declines historically coincide with stock market crashes – not booms. People are just outright confused.
The price of artificially lowering rates to bailout the bankers has screwed the economy in a major way. Those who have retired counted on interest income to survive. The Fed has lowered the income of the elderly to help the bankers in NY recoup after blowing up the world. They have also screwed the pension fund industry that is approaching a serious short-fall because they too have lost interest income that was vital to fund pensions. Whatever government has done to help the bankers, has jeopardized everything else. We are preparing a special report on the problem of Pensions and the Sovereign Debt Crisis. This will also be a vital topic at the World Economic Conference in Princeton, New Jersey.