Sharp-eyed readers will know that I’m no fan of fiat currencies. They’re just too easy to manipulate.
There’s a lot of complicated arguments on each side, but at the end of the day it comes down to this:
When you can manufacture something out of thin air, just by government decree, how can it possibly be worth anything?
I’m reminded of the saying
“You can fool all the people some of the time… or you can fool some of the people all of the time… But you can't fool all the people all the time.” The fiscal and monetary discipline required to maintain fiat dissolved over a decade ago. And the charade has continued unabated, even ballooning in size and scale to unprecedented and truly unsustainable levels.
So what gives?
Well, 2 weeks ago, we witnessed the first domino tipping in what could turn into a cascade of fiat failures.
I explained the situation on Friday, so check there if you want details.
Today, I want to give you a general look at what my trading group and I are doing to profit from what I see as the Bank of Japan’s spectacular mismanagement, which could result in the crash of the Yen.
While I’m reserving our exact plays for my trading group, you could look at ticker symbol FXY. FXY is a Yen ETF that rises in value when the Yen strengthens vs the dollar and falls when the Yen weakens.
My group and I are playing it with a series of 3 shorts, spread over the next few months.
As I said in my free Prosperity Pub telegram group,
“I think a collapse in the Yen could be to the market today what Bear Stearns was in 2008. The yen could be the first fiat supernova (among major, developed economies at least).” And remember, the collapse of Bear Stears led to the Lehman Brothers collapse 6 months later. So, when I say “the first domino”, I mean it. A collapsing Yen could be just the first of many fiat currencies to fall.
In life — and markets — there are no guarantees… But if you believe, as I do, that fiat’s chickens are finally coming home to roost, consider playing FXY to the short side.
And stay tuned to my
free Prosperity Pub Telegram group for more updates on the Yen situation as it develops.
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