The investment outlook for Japan is pretty grim right now. The world’s No. 2 economy saw its gross domestic product (GDP) decline by 4% in the first quarter – the equivalent of 15.2% annualized decline, and the worst showing in more than 50 years.

In the currency market, the dollar continued to fall against the euro and most other world currencies. Late Thursday, the euro was trading at $1.3671 vs. $1.3485 on Wednesday.

Japan dominates news wires…  US retail sales to drop… Russia devalues the ruble again…  And Now… Today’s Pfennig!

US data may wake up the markets… Toyota reports a loss…  NZD falls, AUD gains… Will the Rupee shine in 2009?… And Now… Today’s Pfennig!

FOMC to cut further…  Bernanke turns his back on inflation…  Kiwi and Australia rally…  Gold continues to shine… And Now… Today’s Pfennig!

Yen slides, dollar dips vs euro on US auto bailout hopes
US could vote on rescue plan as early as Wednesday… BoJ’s Shirakawa comments on FX mkt weigh on yen

Gold was flat to the end of Hong Kong trading, but then pushed higher from there to mid-morning in New York, peaking at nearly $775, before declining slowly to finish at $755.30, up $11.50. Overnight, gold is trending higher.

The Daily Reckoning’s currency expert Chuck Butler says the dollar is being taken to the woodshed. The greenback is losing ground against all major currencies as the credit crisis continues to wreak havoc in the U.S economy. Chuck says disappointing inflation or retail sales data this week will send the dollar to new depths…

On one of my first mornings at our home here, my family and I headed for the Fushimi Inari Taisha shrine. Built in the 8th century by the powerful Hata family, the shrine is best known for the four consecutive kilometers of orange Torii gates covering the mountain on which it was built.

We are living in perilous financial and economic time. Very few Americans are even paying attention. All it takes to re-start an economy is to hand out cheap money…right?