I beg to differ. The US is in a deflation. The Japanese bond is under 1.5%. There is no demand for international banks to hold Japanese money. If Bernanke wasn't fooling with the US money, rates would be even lower. Money is always own and when it is in a bank, it is evidenced by debt. There is even more to the situation than meets the eye. Banking isn't logic, it is anti-logic. We are in the midst of a debt bubble the bankers and government are trying to keep going ]
The last figures I read on Japan were put out by Kyle Bass of Hayman Capital. He said Japans government was taking in 40 trillion yen, the same amount it was in 1985. Its expenses were somewhat over 90 trillion yen. Its GDP was 500 trillion yen and the Japanese debt was 1 quadrillion yen. Thus they had a systematic deficit of 10% of GDP, a government debt of 200% of GDP and income of about 8% of GDP. Government expenditures were 18%.
My purpose here was to echo John's, Nero fiddling while Rome is burning attitude of people in the stock market. I suspect we aren't talking about investors at all, but idiots and bankers that are churning the market in a toss back and forth game looking for suckers and pension fund managers who can't quit buying stocks else they admit their models don't work and their funds are bankrupt. Volume has been horrible, nothing that would indicate we are in a real market. Banks are using free money, something called credit, a gift from Bernanke's actions to keep overnight money at near zero. This is also true about the oil markets. Inventories are higher today than they were in 2009 and refineries are running at 84% and change of capacity. When gas was truly in a tight market, back in 2006 and 2007, refineries were running well over 90%. One could blow up today and it would be a near non-event. This is truly a scheme being run off Wall Street, a one hand (stock holdings of major oil companies along with call options) being washed by the other (computer driven higher prices). I venture the draw down that occurred in gasoline stocks for the past month or so were more a result of a sudden rush to the pump by consumers to beat the price increases than shortages. Refinery utilization would be higher if gasoline was not being produced in sufficient amounts. If this continues, the lower half of the population based on income will cease going to the mall and much of the top half will be squeezed as well. Hopefully, wall street will be left holding the bag.