Recently Japanese equity markets were hit by an ‘earthquake’. The biggest bank in Japan – Bank of Tokyo-Mitsubishi UFJ (BOTM) – resigned of his primary dealer status. The reason for such decision is the structure of government debt which can be described as a huge speculative bubble. Who inflated it? The Bank of Japan through countless interventions. Tokio is a leader of zero or negative interest rates scaring any small investor away from the debt market. Today even 10-year bonds are sold with a negative interest rate – a guaranteed loss.

It wasn’t long time ago when Swiss had a referendum about universal basic income (UBI). They rejected it. The initiators of the campaign for UBI wanted a minimum salary to be paid to everyone regardless of their age, occupation or level of income. The UBI was aimed to replace pensions and benefits thanks to which numbers of bureaucrats would decrease. One argument for such a change is advancing automation and the end goal is to disconnect salary from work.

We definitely have an interesting day today. Although I was hoping for Brexit, I thought British were too scared of the Armageddon announced by Cameron and whole ‘Remain’ campaign to actually do it. Ultimately, citizens of the UK showed a lot of common sense and as the first nation in history decided to evacuate from the sinking ship of the undemocratic and insolvent EU. This referendum binds only the UK but it will be remembered as the day the EU has fallen. The implications in both financial and geopolitical sphere are huge.

5

19.06.2016

Some time ago I was sent a film 'Four Horsemen'. Although the movie is from 2011, it can help systemise your knowledge about the system we live in, printing of the currency and the banking sector.

In recent months, we could witness many important events. Their number is so big that I divided this article into two parts. The first part can be found here: http://independenttrader.org/itn-may-june.html

In recent months, we could witness many important events. Their number is so big that I divided this article into two parts.

On June 23rd, British will decide about their future in the European Union. The Brexit vote stirs a lot of discussions and worth noting is the fact that the incoming referendum is not just a whim of a small group of politicians but rather a result of a change that happened in the British society. The UK Prime Minister – David Cameron – committed himself to let people decide whether to stay in the EU during his last campaign. He won also thanks to that promise and now it is time to deliver. The atmosphere is tense as there is no clear winner in the polls. The ‘Remain’ campaign scored higher until Barack Obama visited the UK and recommended UK public to vote for staying. Since then the ‘out’ option gained few percentage points and now polls suggest either deadlock or marginal differences.

After receiving multiple e-mails I decided to share my reading list. If you are considering to invest your hard-earned money you should read at least 20 out of 27 titles I present below.