90 seconds at 9 am: Japan's inflation rises, Europe faces deflation; USD gets haven support, IMF chides EMs; NZ$1 = US$0.808 TWI = 76.7

NZ unemployment

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11195559

Mauldin

The idea that ultra-low interest rates cause booms and busts is not new. Economists of the Austrian school, led by von Mises and Hayek, warned that credit-fueled expansions lead to the misallocation of real resources that end in crisis. In the Austrian theory of the business cycle, the central cause of a credit boom is the fall of the market rate of interest below the natural rate of interest. Investments that would not be profitable at higher rates become possible. The bigger the deviation of interest rates from the natural rate, the bigger the potential credit boom and the bigger the bust. 

Like all bubbles, rapid price increases can rapidly reverse when interest rates return to normal levels. The greatest danger will then be to leveraged investors who bought farmland, corporate bonds, some emerging markets, and other bubbles with borrowed money.

http://d21uq3hx4esec9.cloudfront.net/uploads/pdf/140201_TFTF3.pdf

It should be no surprise the growing gap in income inequalities has coincided with the adoption of fiat currencies worldwide. Every dollar the central bank creates benefits the early recipients of the money—the government and the banking sector — at the expense of the late recipients of the money, the wage earners, and the poor. Since the creation of a fiat currency system in 1971, the dollar has lost 82 percent of its value while the banking sector has gone from 4 percent of GDP to well over 10 percent today.

The central bank does not create anything real; neither resources nor goods and services. When it creates money it causes the price of transactions to increase. The original quantity theory of money clearly related money to the price of anything money can buy, including assets. When the central bank creates money, traders, hedge funds and banks — being first in line — benefit from the increased variability and upward trend in asset prices. Also, future contracts and other derivative products on exchange rates or interest rates were unnecessary prior to 1971, since hedging activity was mostly unnecessary. The central bank is responsible for this added risk, variability, and surge in asset prices unjustified by fundamentals.

The banking sector has been able to significantly increase its profits or claims on goods and services. However, more claims held by one sector, which essentially does not create anything of real value, means less claims on real goods and services for everyone else. This is why counterfeiting is illegal. Hence, the central bank has been playing a central role as a “reverse Robin Hood” by increasing the economic pie going to the rich and by slowly sinking the middle class toward poverty.

http://www.zerohedge.com/news/2014-02-01/how-central-banks-cause-income…

Okay , so the only thing that holds a fiat currency is TRUST .

Trust that the Government and its treasury will act responsibly and in the interests of Business , and lets face it BUSINESS IS THE ONLY PRODUCTIVE SECTOR AND CREATOR OF WEALTH AND REVENUE IN ANY ECONOMY .

Governments produce nothing whatsoever , they take from the productive sector  and spend it a loss less judiciuosly than you or I who have slogged and risked all to earn it .

That is why the currencies of tin -pot third world dictatorships are useless as a medium of value store or exchange .

They spend like drunken sailors until it runs out .

There is no way we could ever go back to the Gold Standard , so the Giverment are forced to act responsibly with our economy , spend carefully with thier means