The Japanese event isn’t going to be deflationary. There is a lot of money printing, and that will be inflationary. They are also going to buy a lot of things to rebuild. The downtrend in gold and oil isn’t going to continue. All the suspicion about nuclear power now means that there will be an even greater demand for oil in the near future, which will put some upward pressure on the price of oil.
Good idea to be short emerging markets, short the Nasdaq, long on commodities, and short on commodities, particularly the Japanese Yen.
There is inflation in the world. It is only the central bankers, especially in the United States and Japan who are trying to convince us otherwise. We have major problems coming.
