I get lots of emails from readers giving me URLs. I love this and please keep them coming! Today, even as I roamed the web, everyone sent me the startling and funny news that Iran Kitty, of all people on earth, figured out how to force the yen higher! I just am in awe of this feline. Iran's letter demanding the Japanese buy oil only in yen is pure genius. You can bet, there are others involved in this situation, like a certain major oil pumping nation that demanded the US pull back those missiles being set up in Poland...?
Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran's central bank said it is reducing holdings of the U.S. dollar.
Iran wants yen-based transactions ``for any/all of your forthcoming Iranian crude oil liftings,'' according to a letter sent to Japanese refiners that was signed by Ali A. Arshi, general manager of crude oil marketing and exports in Tehran at the National Iranian Oil Co. The request is for all shipments ``effective immediately,'' according to the letter, dated July 10 and obtained by Bloomberg News.
The yen rose on speculation for an increase in demand for the currency, the result of Japan's annual 1.24 trillion yen ($10.1 billion) of oil imports from Iran. Central bankers in Venezuela, Indonesia and the United Arab Emirates have said they will invest less of their reserves in dollar assets because of the weakening currency.
I was beginning to itch to do a cartoon about Iran Kitty. Well, this is the time! My god, this is probably the most amusing of all my creatures that live in the much more real world of cartoons (real people are less real, it seems). This event is like a lightning bolt tearing through all the world's currency markets! One would think, Iran would ask for euros. But instead, the cat, true to its nature, decided to catch not the bull by the horns but the mouse by the back of its neck. Meow! They took ahold of the world's weakest big nation currency and are forcing the Japanese to use it internationally.
This is, to put it mildly, a gigantic stick stuck in the spoke in the 'carry' trade's little red wagon's wheels. Big time. The Japanese just decided yesterday to keep the below 1% rate going and they did this at the behest of Goldman Sachs, i.e., our Treasury Secretary. The Chinese are filled with real ire over the fact that the yuan is rising faster and faster against both the dollar and the yen but even today, the US is attacking China for 'currency manipulation.'
HAHAHA. Right. China's interest rates are comparable with Europe's. Japan's is totally insane. Into this murky picture of international intrique comes the world's Hamlet: Putin. He is, to put it mildly, pretty pissed off at the Europeans and the Americans. He made it totally clear, if they and we put these missiles on Russia's borders, we will all feel some serious pain up to and including the total annihilation of all humans on half of this planet! So one would think we and Europe would think twice? No?
HAHAHA. Enter the Cat! Putin came to America to give both Bushes a personal warning which was totally ignored. The Europeans then worked with Bush to strangle Iran more and today, Congress, aka, the smaller house of the Israeli Knesset, denounced the Cat and screamed we will fight Kitty to the death or when we bleed white from scratches, whichever comes first.
Enter the Chinese dragon. The Russian bear, the dragon and the cat probably had a discussion. 'Let's kill a whole bunch of birds with one stone,' said Hu. Being a dragon, he thinks first, second and last about money and riches. The Kitty became very excited. 'Oh, this will be royal fun,' he purred. Of course, like Europe with Russia, Japan could refuse to buy Iran's oil. But then, a certain dragon will happily suck it down, anyway, and pay in rising yuan to boot. The US can't allow this.
The US will now demand Japan negate its contracts and abandon the wells it is running. HAHAHA. I see one very happy dragon flying into Iran to take over the production from these wells. The US could attack Iran over this but then, with Putin and Hu both backing Iran in this matter, um, I see a very cold Europe this winter. And $200 a barrel oil for the US which will go bankrupt and bin Laden will win his war with us.
More Kitty mew news:
Iran isn't alone in wanting to drop the dollar for pricing oil. Russia has been examining plans to price the Urals oil export blend in rubles to curb currency risks. The nation plans to open the Energy Stock Exchange in St. Petersburg in the first half of next year to trade oil in rubles, UBS AG reported June 14.
If 1/3 of all oil exporting nations refuse to take dollars then we are going to be in for some very serious pain. The imperial fiat scrip we issue becomes worthless if no one wants it. The dollar used to be, even when we wrecked it in the past, supreme! But now, Asia will be trading in yuan, not dollars. And Russia has the world's 3rd biggest FOREX reserves so they can easily support and protect the value of their currency. Japan can too but refuses.
Already, with today's news, the yen, which the Bank of Japan was planning to drop to 140 to the dollar and god knows how much to the euro, is suddenly going up! This is a huge blow to the power of the Bank there! And it gets worse for Japan! Now that they must treat their currency as an international script and not as only for at home, they must be very careful or all the yen that will now flow to Iran will be parked not in Iran's banks but in a high-interest bearing banking system that the US cannot touch or confiscate!
Enter the money-loving Dragon and his big, dark cave. If a flood of yen flows into the cave owned by the Chinese Dragon, they will end up controlling Japan's own currency! YIKES. I warned Japan but the government doesn't read my news service. Iran does, they have emailed me in the past. So they aren't stupid. And the Chinese. They know me for certain. Ha.
So...I gave both the US and Japan fair warning. I spend weeks examining this and explaining how the scheme to weaken the currencies of the two biggest economic powers on earth was insane, foolish and FATAL.
Crude oil rose to an 11-month high in New York and London after a pipeline shutdown and maintenance work reduced North Sea Brent oil production.
So, are stocks going to soar on this news? So far, reality has been fantasy there. This is pure lunacy. They thought the Japanese game of handing out free money as cover for them all making up money magically via loans, is now going to fall apart. As the Bank of Japan itself noted, 80% of its trade surplus this year was MONETARY due to the cheap yen versus all other currencies. Now watch this shrink magically!
And all SUV drivers: warning---gas ain't going to be cheap. Better downsize before it is too late.
Today is very interesting. Several readers sent me the URL for the lastest insanity to come out of the White House which seems to be filled with endless troops of incompetent fools.
The U.S. is urging China's central bank to buy more mortgage-backed securities after a surge in defaults by risky borrowers in the world's largest economy eroded demand for such instruments.
``It's not a matter whether they're going to do more business in mortgage-backed securities, it's who they're going to business with,'' U.S. Department of Housing and Urban Development Secretary Alphonso Jackson told reporters in Beijing. He met with central bank Governor Zhou Xiaochuan and Minister of Construction Wang Guangtao in the nation's capital this week.
The U.S. housing regulator is seeking to tap China's $1.33 trillion of foreign-currency reserves after surging defaults on subprime mortgages caused the near-collapse last month of two hedge funds run by Bear Stearns Cos. Almost $12 billion of U.S. mortgage securities have been downgraded by ratings companies.
This is part of the secret CIA plan to make the Chinese laugh to death. I must warn the CIA about this: they only laugh if they are angry. So if they do this, run like hell. On the other hand, the CIA laugh to death plan is working...ON ME! HAHAHAHA. Rolling around the floor, scaring the dogs and irritating Fluff: HAHAHAHA. My god. This is too funny.
OK: going to a very irritable dragon who has extended us many loans already and is the #2 holder of our govenment IOUs which keeps us afloat and ordering this dragon to buy worthless securities we won't touch with a ten foot pole? Sigh.
Look guys, stop it. The Chinese sense of humor involves putting bullets in the back of the head of corrupt officials. Don't pull their legs. The Dragon worked hard to earn the cash in its FOREX reserves. This creature even told me long ago, 'I be bank!' And so it is! No surprise from my end. As a harsh mistress, I am proud the Dragon has grown up. I only wish Miz Liberty would call me and ask me to come to DC and explain reality to everyone there.
They know my phone number. If not, ask the FBI or the BATF. If they lost it, ask Bush to call me. He knows my number.
To continue: how dare we demand China prop up our goofy real estate market? The entire thing was cooked up by the Japanese, after all. China has always asked for sensible interest rates on its money, being a dragon and all that, it understands compound interest and checking out financial facts of anyone asking for loans. No way it would loan money out on an ARM to some illegal alien in Stockton, California.
So asking the dragon to take up these dead loans is insanity, an insult and perhaps a declaration of war. Will we have a trade war with China? China, who has lots and lots of our money to spend elsewhere? And what will we do? Buy stuff from EUROPE???? We can't buy squat from them now! The euro is now 50% more expensive than it was a mere 6 years ago!
Consumers put away their wallets in June, sending retail sales crashing by the sharpest amount in nearly two years.
The Commerce Department reported Friday that retail sales fell by 0.9 percent last month, the biggest drop since August 2005. Demand for autos, furniture and building supplies all plunged.
Inflation caused by the Federal Reserve and oil are eating us alive. And people can't afford to spend money so it is vanishing. And of course, trying to steal it from the Dragon involves some serious pain and possible death. When China was very weak in 1933, Japan invaded. They then got involved in this three way war with the communist and nationalist Chinese. These entities still exist and will merge soon. And Japan still won't pay reparations. The Dragon wants that paid in full with compound interest.
What if we close off trade by sea with China? And China closes off Taiwan, Japan and Korea and unleashes Baby 'me go boom' Dragon? And the overland trade flourishes due to the Russian Bear? And we see our currency collapse, oil sells for $1,000 a barrel and WWIII ends with cockroaches running over corpses. Right.
So we must stop this insanity. We can't Hitler or Hirohito our way out of this financial mess we created ourselves.
NEC, Fujitsu Greatly Expanding Asian Engineering Staffs
TOKYO (Nikkei)--NEC Corp. (6701) and Fujitsu Ltd. (6702) will each boost the number of their software developers in Asia outside Japan, particularly in India and China, to more than 10,000 in three years to counter the shortage of such talent in Japan, The Nikkei learned Friday.
Consumer Lenders Likely To Cut FY07 Outlooks On Soaring Refunds
TOKYO (Nikkei)--With a growing number of borrowers demanding refunds of interest overpayments, speculation is emerging in the stock market that the four major consumer finance firms will have to revise down their earnings projections for the year ending March 31, 2008.
S'tomo Mitsui Card To Offer Credit Cards For Tourists To China
TOKYO (Nikkei)--Sumitomo Mitsui Card Co. plans to issue around December credit cards for Japanese travelers to China, quintupling the stores there that take their credit cards, The Nikkei learned Friday.
And here in a nutshell is the harsh truth: Japan needs China. China can ignore Japan and go off and do whatever dragons like to do and then sink Japan's fiscal ship in one swoop or Japan can trade with its dominant partner and start showing respect, honor and courtesy to China. The US is incapable of this. So China will toss more scratching cats into our laps until we figure this out.
The Chinese are an ancient civilization. When the Japanese, Germans and English were howling savages wearing animal skins, China was weaving silks. They are a stupendous culture and one we should handle with care. And if we are good and not naughty, they will love to embrace us and do business with us and let us into their homes. I happen to love the Chinese in many ways just as I love Japanese culture and German culture and all this stuff so why are we acting so stupid????
We must grow up! And learn how to count. And how to shake hands. And how to do real business deals and not act like infants. And please, in the name of Allah, leave the Iranian Kitty alone. Please.
And if our rulers wake up an suddenly say, 'Let's do a sneak attack on Moscow, ' please, strike him with a lightning bolt.