Ann: Quarterly Activities Report, page-39

BC4

glad you enjoyed it!

this is also worth a read imho:

As you know – the Jap central bank announced “unlimited” purchases of 10-yr JGB’s at 0.25% some 3-4 months ago (essentially implementing yield curve control). Since that time – the Yen has been in free-fall…….




this indicates that the Jap Central bank will only allow the yen to fall so far (b/c it will be highly inflationary for households, and also anhialate margins for manufacturing companies in japan)…….

So the trade off of yen value versus 10yr paper will be a series of “steps” (ie yields will actually rise, and the yen will continue to fall…….).

What isn’t yet apparent – is that the “carry trade” (borrow in yen, and invest in 10yr USA paper …..and pocket to yield differential) is over as a result ……….

Also – last Thursday – the Mortgage backed Securities market in the USA – went “no bid” (b/c its expected that the US federal reserve will start unloading some …….)


given energy / foods are in inflationary trend, and Govt's all around the world are doing handouts (rather than try and inc supply), then we could get serious infl........we are already seeing riots in relation to food shortages in some countries........

if the western world goes down the path of Japan (YCC) - then infl will be allowed to run hot ........
this has implications for profit margins, and Gold would be just abt the only thing that ordinary people could own to save themselves .......


ps - RRL should consider sale of equity in mcphilliamies post approvals process....

just a thought!
rgds
V_H