Japan: The Perfect Place For Keynesian Lies To Be Fully Exposed In All Their Disgusting Glory

Japenese Frankenstein Keynesianism is a consequence of Samurai culture, Stockholm Syndrome, Hiroshima, and Nagasaki. (And Mary Shelley.)

Summary

• The Japanese yen could be the key to destroying the myth that higher rates are the solution to higher consumer prices in the Keynesian system.

• An emergency rate hike by the Bank of Japan could lead to a brief strengthening of the yen followed by a collapse, challenging the orthodoxy.

• US regional banks are in trouble again, bank reserves are way down following tax day, and the Fed is ready to stop QT.

• If gold moves above $2,450, the historian is right.

Where is the Tipping Point?!

The way I see it, the entire Keynesian system is hinging on one thread. That thread is the my that higher rates are the solution to higher prices. Once that myth is thoroughly destroyed, we will be on a beeline to the End Game.

Every day now, the yen seems to move up another handle. (Up means down against the dollar.) There is no vehicle more perfect for destroying that final myth than the Japanese yen, because the yen encapsulates within it the mystical Keynesian Wizard of Oz. Just like the communists point to Scandinavia to "prove" that stealing massive amounts of money so the state can take care of you is the best way to go about doing things, any time a rationalist points out the insanities of imagining you can create wealth by increasing accounting units, they point to Japan and say, "Look, it works there!"

So, in a world where poetic justice, or karma, or yin and yang, or מדה כנגד מדה, or עין הרע, has power, and I think it does from a rationalist perspective (it's similar to Newton's 3^rd Law of Motion) then the fulcrum on which Keynesian mythology rests – the Japanese economy – should hopefully be the key to undoing it all.