sovereign-investor.com / Evaldo Albuquerque / December 17, 2012
It’s finally happening.
Analysts have been predicting this event for years, only to be disappointed.
And investors who have bet on this event over the past few years have lost their shirts.
The market has defied those predictions for so long that many were thinking it would never happen.
But, as Carmen Reinhart and Ken Rogoff pointed out in their book This Time Is Different, “in the history of financial crises, when an accident is waiting to happen, it eventually does.”
Today, Japan is clearly the biggest accident waiting to happen.
I believe yesterday, December 16, 2012, will go down in history as the beginning of the accident… the beginning of Japan’s endgame.
For investors who make the right move, this could turn out to be the trade of the decade.
The Bug Has Found the Windshield
John Mauldin, the author of Endgame, colorfully refers to Japan as “a bug in search of a windshield” because of its unsustainable level of debt.
Well, the bug has found the windshield… and the windshield is actually a person.
In yesterday’s election, Shinzo Abe became Japan’s prime minister. He said his number one job is to put an end to the country’s eternal deflation problems. He wants to devalue the currency to create inflation of 3% and promote growth through exports.
In other words, Mr. Abe wants the Bank of Japan (BOJ) to print money like never before.