Wednesday, February 29, 2012

Nomura Analyst: We are Facing 'Monetary Anarchy'

Bob Janjuah, head of tactical asset allocation at Nomura, correctly writes:
We have Monetary Anarchy running riot, where the elastic band between the real economy and the current liquidity-fuelled markets is stretched further and further beyond credulity.

He said bubbles were visible in all asset classes because central bank balance sheets are at the core.

The end of the bubble will be signposted by either monetary anarchy creating major real economy inflation or by a deflationary credit collapse.

Bizarrely, Janjuah also says:
Real assets are relatively attractive. But I am going to wait for this current central bank bubble to burst before going all in.
Note to Janjuah: You get in now and get out when the money printing stops. The price climb on real assets is about to enter a spectacular upside phase.


  1. Monatary Anarchy? Where?

    This Nomura analyst should read Lew Rockwell to educate himself.
    Anarchy is all about avoiding coercion and central planning. What we see is not anarchy but statism running wild. Money printing equals to using force against anyone having interest in vale of this currency.

  2. I think he means Monetary Chaos. People always use the word anarchy improperly.

  3. Get out for what? Cash in a MMF?

  4. Not sure he picked the right term with "Monetary Anarchy."

    We'd be lucky to have monetary anarchy.

    Instead, I'd piggyback Von Mises and call it "Planned Chaos".

  5. This comment has been removed by the author.

  6. How about monetary incoherence

  7. Robert Wenzel ~ If someone cannot buy gold/silver in a 529 or HSA account, are equities a decent option? I'm certainly avoiding fixed income like the plague.