Peak Stupid.

HELICOPTER MONEY: COMING TO AN ECONOMY NEAR YOU!

Bernanke-San has just had two very secret much publicized meetings with both Abe and Kuroda. What was discussed was highly secret and will never be known by anyone but the attendees of the meetings, including the one attendee who remained absolutely and resolutely tight-lipped for five or six minutes or so after the meetings were concluded.

Originally floated as a “people-are-talking-about-it-but-gee-wouldn’t-it-be-just-silly” idea back in October, the expectation is that several announcements will be made over the coming week or two.

Ever since negative interest rates went down like a lead balloon, reported sightings of helicopter money trial balloons have been increasing exponentially over the last few months. And now we’re here.

Poor, poor Japan has been reduced to the offshore economic laboratory of a crazed, deluded, megalomaniacal, mad scientist.

The proud and noble citizens remain unaware. Their reckless leaders remain blissfully unaware. In fact, Abe and Kuroda were both so grateful for Bernanke’s time and helpful advice, they personally delivered him back to his private plane, The Enola Gay.

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EVASIVE ACTION:
Use pullbacks to add to your positions. This is getting scary.

Markets have euphorically bought the rumour, and it is my belief that they will just as pragmatically sell the news (particularly as we reach this juncture of nose-bleed index heights combined with a fifth straight quarter of profit declines). That is, I expect the shelf life of this latest mass delusion to last somewhere between Kuroda’s NIRP (less than 45 minutes) and Draghi’s Bazooka (less than a few weeks).

I’m serious about the scary part. While the few of us here have the common sense and foresight to hedge against gross policy stupidity, I hold grave fears for the great majority who will be blindsided by the fallout.

Without sounding like a nutter/ gold perma-bull/ gold bug / religious zealot/ doom and gloom merchant/ crazy relative, it might be a good idea to tip valued friends and close family into a few of the better gold miners. While they’ll curse you the very nano-second they drop to -0.01% on their investment, my gut feel is that they’ll be thankful over the longer term.