Courtesy of the StealthFlation Blog
By eviscerating the U.S. bond market, they have completely destroyed the time value of money. Thus, there no longer exist a viable time deposit value on savings.
Those relatively riskless returns are gone, and what we are witnessing in Japan is a desperate and perverse attempt to recreate those secure income streams which are fundamental to a life spent prudently saving one’s hard earned wealth.
Moreover, those savings deposits provided the basis for fundamental capital formation through the fractional reserve banking system.
make no istake, the equity markets can never replace the security of steady moderate income streams which were provided by a normalized Treasury Bond market.
Furthermore, in an environment of flat line growth, the now reflated equity market will not only be unable to generate those same reliable steady returns over time, but will also put those very savings completely at risk.
They have built a Doomsday machine, and thanks to Black Rock’s Larry Fink we are witnessing it being fired up in Tokyo today.
via Zero Hedge http://ift.tt/1pf05zV Bruno de Landevoisin