Having come back from the Niyodo River, one of the most beautiful Japanese rivers in the Kochi Prefecture shown above, I just pick up some articles and columns which simply point out the world community is now heading to total deflation.
First of all, a brandnew column on my favorite blog written by Barry Ritholtz. He carefully named it “Why has Core Inflation Slowed?” But actually, it’s regarding the current accelerated deflation of US economy. In spite of the massive QE so far, the US apparently fails to inflate its economy as a whole. The point is now when Obama will admit “We’re now facing not inflation but DEFLATINON.”
Secondly, the OECD declares its annual inflation rate slowed to 1.4% in the last February. Bureaucrats of this industrialized nations’ salon also carefully disseminate it by saying the following:
“Excluding food and energy, the OECD annual inflation rate was stable for the fourth-consecutive month at 1.6 percent in February.”
Beyond such a typical rhetoric, nobody can doubt the world economy is just heading to total deflation, while western economies have been trying to pour countless money into the market but in vain.
Finally, an article on the current situation in Spain: Her economy obviously entered the time of deflation, while consumer prices fell for the first time in the last four years there. In addition, the ECB finally explains France, Italy and Spain are now caught in debt trap. Something significant must be done quickly, although poor Mario Draghi isn’t brave enough to do so.
Well, my dearest readers, the truth is quite simple. THE WORLD COMMUNITY HAS JUST STARTED TO GET INTO TOTAL DEFLATION. That’s all. I’ll show you its mechanism simply as follows:
-Solar activity gets troubled and affects lines of magnetic force around the earth.
-That causes dramatic climate change on the globe.
-Especially in the northern hemisphere except for the North Pole, global cooling gives negative effect to traditional centres of western economies.
You may wonder why “global cooling” gives affect the financial capitalism negatively, I suppose. It has something to do with human immune strength. It’s already proven scientifically that human immune strength will be weakened to 60%, when atmospheric temperature will go down 1 °C lower than before.
Based on the facts mentioned above, I can imagine all the eminent investors have been seeking ultimate target of their investment, which is still resilient to this irreversible change of the sun and climate. The answer is JAPAN, while the majority of the Japanese people isn’t even capable of recognizing it.
Until now, the rest of the world has scoffed at the Japanese style of deflation, or “deflation after sudden collapse of the Heisei bubble since 1990”. However, the “Ironie der Geschichte (Irony of the world history)” shows, “Westerners, your turn is coming”, while the Japanese have been forced to train themselves so that their economy can stand massive deflation.
I’m fully aware of the fact that lots of my friends living in other countries than Japan frequently read this weblog, for which I thank you very much. As a token of my gratitude, I’ll give you based on my own experiences in the Japanese type of deflation some tips on how to survive in the next 100 years:
–NEVER GIVE UP. Things won’t be done from now as you will have expected. However, the worst is to abandon your wish and dream. To accomplish them, it will simply need much longer time than before.
–GET BACK TO HUMANITY. The conventional rule, “Winners get all”, won’t work any more, because nobody won’t become winner. Forget “Gesellscahft” and remind yourself to go back to “Gemeinschaft”.
–DON’T FORGET WE ARE LIVING ON THE EARTH. In the era of total deflation, nobody will be trapped by your social manipulation via mass media. Instead of that, the sky and earth, the most simple but indispensable media around us will become more and more decisive for our daily life. Learn how to adapt yourself to them.
Last but not least, I must mention Japan is now heading to the quite opposite direction: “inflation thanks to different dimension led by the BOJ”. Can you understand what will occur in the near future?? Massive capital flights to her market, while others will get into total deflation. You should wonder what the very hard core of Japan prayed for. The Japanese never forget they were forced to give up the once given right to hold the Olympiad in 1940. Before the Summer Olympic Games in Tokyo in 2020 will be held, the obstacle factors in 1940 must be wiped out. What’s it then?? Stay tuned…