Liquidity vs Hemorrhage Cycle Revisited

Liquidity (currency devaluation) has always been the solution to all crises. The Japanese have little choice after a devastating disaster. Unfortunately, the economic illusion provided by liquidity phase vaporizes like fog in the early morning sunshine with the inevitable transition to the hemorrhage phase (liquidity vs hemorrhage cycle). Have no doubt, it's coming again.

Headline: Japan sprays more cash over jittery markets

Japan's central bank sprayed more cash over jittery money markets Thursday as a major bank's ATMs suffered a two and a half hour outage nationwide and the yen shot to a record high.

The Bank of Japan injected an additional 6 trillion yen ($76.7 billion) in same-day funds after the dollar hit 76.25 yen in the morning -- an all-time low for the greenback in the aftermath of Friday's earthquake and tsunami that killed thousands and triggered an unfolding nuclear crisis. With same-day funds, banks in need can access cash immediately.

Source: finance.yahoo.com