your article ZH, the last 2 paragraphs above the currency decline chart versus gold are a worry. the author really has no idea.
- Bernanke is following Greenspan who was following the Japanese, not the other way around - Japan owns most of it's debt - something Bernanke has only now learned to do himself out of necessity. Every country should learn to own it's own debt, that way it is not held to ransom by hostile foreign debt holders and volatile exchange rates - If the author is worried about Japan selling it's US bonds, he must have to change his shorts every time he thinks about China's US bond holdings - Japan's recent restructure might be worth $200bn +, say $300Bn - hardly enough to impress global energy flows. Pressure will be downwards, then only slighly upwards to me - Japan's biggest problems are the trade incomes from Toyota, Sony, Honda, Kawasaki and Suzuki - The US has not seen any inflation yet. It is still paying less than $4.00 a gallon for petrol at the bowser. Food and goods are half the price paid in AUD at parity.
"The great earthquake/tsunami/nuclear meltdown of 2011 will result in more quantitative easing in Japan and the U.S." - newsflash for chickenlittle - this was going to happen without an earthquake in any case
There are bigger trends which Sendai will hardly impress upon. Hence the reason to search deeper into the world of fund flows.
