I quite often read Zero Hedge for an insight into the financial world. Whilst it does on occasion veer towards hyperbole with the odd whiff of tinfoil-hattery, the writing style and humour is more than enough to compensate.

The title of this post comes about from a damned good article today on whether inflation, deflation or both are happening in America (emphasis mine) :

Two weeks ago I discussed that the market would push the yen to the point where the BOJ would be forced to take aggressive action to stop it and then potentially the yen would start to collapse and the JGBs would go with it.  This would then herald the end of the government bond bubble globally (it’s really a fiat currency bubble).  Well, the yen did push the government in Japan and they did act and the yen got smashed by 3% versus the dollar in one of the most powerful reversals I have ever seen.  Does this mean the end of the yen’s rally and JGBs?  Way too early to tell, but I did get something else from it.   Surprise, surprise it is exceptionally bullish for gold. Why?  Because it just proved to another segment of the investment world that perhaps remained in denial that all governments are playing games with your savings.  That fiat currencies are pieces of paper that are being fondled and molested by global central bankers.  That these games will not stop. The Fed can buy all the SPU futures they want and the other players can sell the treasuries they recently bought back to the Fed and then goose the market, but the magicians of mayhem can’t print gold and that is all you need to know.

Worth reading in full.

And, in case you are wondering what on earth fiat currency is then have a look here for an introduction and then here for how various fiat currencies have fallen over in the past.

Time to start thinking about the pretty paper and metal trinkets in your pocket in a rather different manner.