Japan’s Economic Past is U.S. Future
As WealthCycles readers know, history is a brilliant teacher. As Mike Maloney wrote in his book Guide to Investing In Gold & Silver, “As you will see, debasing the currency to pay for public works, social programs, and war is a pattern that repeats throughout history. It is a pattern that always ends badly.” Japan’s story is evidence, yet again, that basic economic principles cannot be ignored forever. Japan and the United States are on the same path of currency expansion and debasement; Japan is just a few years further down the road.
An Historical Perspective
In 2010 we described Japan’s economic collapse like this:
There is a lot about Japan’s story that will sound familiar. It is a story about rampant speculation, asset bubbles and price fixing run amok.
Prior to a collapse, Bass says, will be a qualitative slip—a belief in the collective psyche that the situation is untenable. Bass believes that this phenomenon is already in play and that the countdown clock has already begun ticking...