Elaine Meinel Supkis
Last month, a person I shall call 'S' contacted me. This individual used to be an officer inside the Japanese banking system at Sumitomo Bank. Not only has this person who must remain anonymous, given me some good information, this person also brought to my attention, the business about Sumitomo Bank and this is time to take a good look at the Japanese banking system, Japanese politics and how they do business and why they can't seem to get out of their depression at all, at least, in the domestic markets. I would suggest the Japanese merely pretend to do things the way we do things but they have an alien system which is now warping our own for we are imitating them, not the reverse. This is why examining the history of Sumitomo Bank is very important for us.
Dear readers, although I disguised the emails here, this still caused some fear in the writer so I deleted it all.
Fear is a big, big part of the magic of money. Since I, myself, have no fear, I can write plainly and openly about things. Alas, this is not true of most people. They know the hammer blows of the ruling elites land on anyone and everyone who dares to openly talk about anything that is 'hidden' from view. Especially when it comes to money.
Indeed, I must caution readers here, if they send me information, to understand, if it has any importance in the real world, it will have an effect on events. I have yanked aside more than one veil in my own life. Bush Jr. even once sent Haley Barbour to NYC to get the NYT to stop me from going after him back in 2000. I have discovered over the years that people, when confronted with open discussion of hidden things, often retreat which is why we see so many retractions in the news all the time.
The internet has a lot of anonymous material. I go to many sites and see 'no name' and the people there will have reams of interesting information that cannot be confirmed. The net overflows with this stuff. Luckily for me, there is a lot of upfront material. Way back in the old days, I used to quote anonymous bloggers but ceased doing this except for very occasionally because it irritates me to see anonymous information.
Long, long ago, I chose to be myself and not hide behind a fake name because I don't care if they go after me. I am not an unknown person. Everyone at the top of our systems knows perfectly well, who I am. The money making part of our culture has been blind-sided by me, they always thought I was purely political. But the mix of money and politics interests me and my main function is to tell the future and to explain why our future is happening. This means putting our financial business under a microscope.
Every time I focus on something, I find an interesting twist. Sumitoto
TOKYO (Kyodo)--Tokyo stocks closed sharply higher Friday for the second consecutive day on the yen's depreciation following comments by U.S. Federal Reserve Board Chairman Ben Bernanke and firm stock markets overseas.
Oct Housing Starts Fall 35% On Year
TOKYO (Dow Jones)--Japan's housing starts fell 35% in October from a year earlier to 76,920 units, marking the fourth straight month of double-digit declines, the Ministry of Land, Infrastructure and Transport said Friday.
First, we must look at the Nikkei today. Note how the system I have talked about for years whereby the yen weakens and INSTANTLY the Nikkei shoots up. It is obvious now that this is the New Japanese World Order. It is so obvious that unlike last year even, the news in Japan regularly reports this as a known fact. Whenever a system becomes this obvious and this open, it is a warning that something is about to collapse. This peculiarity of general knowledge causing wholesale collapses is across the board. For example, if everyone thinks, 'If the dollar goes down against the euro, gold will go up,' then their own beliefs will cause this to happen. One action will trigger the other. But if everyone does this, it collapses from being overweighted which causes bigger and bigger swings.
In this case, it is easy to see the problem developing. The weak yen means more sales to the US which has zero means of controlling Japanese imports at this point in time. But the deteriorating US economic condition coupled with a rising inability to run up more debts means the US will suddenly be unable to buy expensive Japanese manufactured goods. So even if the yen is very, very weak, it still won't increase profits if the US market dies overall. So the Japanese game has a downside. Eventually, a weak yen will only be a weak yen.
The Nikkei shot up due to Bernanke saying he will encourage reckless spending in the US. Japan once did this back when they signed the Plaza Accords and the yen shot up against the dollar and the Japanese went on a wild spending/lending spree at home. Property values shot through the roof and Japan looked like it was the richest nation on earth. I sardonically said, 'They have expensive slums and get to live in apartments the size of my bedroom that are more expensive than my mansion.' Which is like living in Manhattan: a half a million dollars on the Upper East Side buys a one room box with one window and one door and a small closet. Great.
I wish to suggest that the present banking situation in the West and the wild lending and the bizarre games surrounding all this are nearly identical to the Japanese banking collapse and the depression there which has been turned around by Japan into a power base for global expansion and world domination. Only in our case, it is doing the exact opposite. Because of one major difference: we want to spend money and buy things even when we cannot.
I never worked in or for a bank. My only experiences with banks has been via them lending me money on occasion while I develop properties. I have had many battles with banks over the years so they interest me. For example, one bank exploited a mistake I made on a check and it was overdrawn on my construction account where I passed money frequently, due to me miswriting a number. I noticed this three days later and rushed to the bank to correct it. I found out that they wiped out ALL my other account by bouncing this check internally 15 times in three days! They passed it back and forth, cheerfully charging me $20 each time.
I not only forced them to rectify this, I went to the State Attorney General and filed a formal complaint and then sat in on meetings concerning changing the laws so this would be forbidden and only one charge can be made against a check that is overdrawn. I then helped insure this passed into law as well as going to the SEC and demanding better supervision. I went to Washington, DC, to talk about this matter and today, banks are not allowed to do this nationally. This is one action I really enjoyed doing. Also, even though this was going on before I was aware of it, no one did anything until I ran around in a perfect rage about this rip off scheme cooked up by the banks.
It is wonderful hearing from an honest person who worked inside the banking system. Note how 'S' was pressured to make profits one way or another. In Japan, being 'thrifty' is a virtue and 'S' confirms this with the business about keeping overhead down. Indeed, it is done quite ruthlessly. This miserly attitude towards the work force is quite strong.
A Toyota Motor Corp employee died of overwork after logging more than 106 hours of overtime in a month, a judge ruled Friday, reversing a ministry's earlier decision not to pay compensation to his widow.
The Toyota Labor Standards Inspection office, a local branch of Japan's labor ministry, refused to pay the widow the usual compensation for a spouse's work-related death, saying the man had only logged 45 hours of overtime in the month before he died, Japanese media reported.
Americans have this misconception of Japanese workers being taken care of by a benevolent master who looks after them for life. The concept of working people to death is unfortunately part of Japanese culture going back many hundreds of years. During WWII, the Japanese notoriously worked their captives to death. Toyota is a global corporation that works its own people to death in Japan.
The worker in this story probably was working overtime so much in order to get enough money to live. This is due to real inflation killing the purchasing power of most workers. They have seen wage cuts for over a decade now. Toyota has fooled Americans into thinking working for them will be profitable and easy. The plan is for Toyota to utterly dominate our domestic auto markets so they can begin to institute wage cuts and ridiculously long working hours here. This is why the penetration of our markets is so alarming.
The entire Japanese economic model has been reset to force workers to work longer hours for less pay while the price of consumer goods declines but they can't buy any of it because of declining wages. The only way they can buy things is to work longer hours. This is destroying their ability to have children or good marriages and will eventually lead to the end of Japan as a society. But the temptation to set up and run this system is tremendous. It makes the executives of Toyota very, very rich.
'S' got me thinking about Sumitomo Group. It is one of Japan's oldest financial houses. Indeed, aside from the Rothschilds , few banking families have a longer history.
The Sumitomo group of enterprises is one of the oldest surviving business entities in the world, dating to the early 1600s. Sumitomo was originally founded near Kyoto as a medicine and book shop. The discovery by a family member of a new method for copper smelting led the company into the expanding and highly profitable copper trade. The acquisition and development of large copper mines had made Sumitomo one of Japan's largest companies by 1868, when battling clans restored the Meiji emperor to power.
Although Sumitomo supported the losing side in that struggle, the company managed to develop good relations with the new government and later purchased some state enterprises as part of a national modernization campaign. As the company grew, Sumitomo's director general, Teigo Iba, advocated diversification into new fields of business. Flush with money from Sumitomo's copper operation, Iba set up a banking division in 1895 called the Sumitomo Bank.
Note how this enterprise backed the Samurai warlords. A feature of Japan is how elastic they are: no matter how much things are pulled out of shape or distorted, they snap back into the older models and ways of thinking. The Tokugawa regime was an extremely brutal dictatorship. The Tokugawa placed Japan in a military/financial straight jacket which forbade foreign commerce, imports were tremendously restricted and intellectualism eradicated. For 250 years, this miserable system floated along in a dream-like fashion. Over time, the merchants were able to overcome resistance by the overlords to commerce. The Sumitomo family obviously managed to please the Tokugawa military dictatorship and swore fealty to them and supported them in their fight to prevent modernism.
Yet, the minute the other side won, the Sumitomo family rushed over to swear fealty and serve the new government. They then launched into modernization with a passion. This revolution, by the way, was forced upon the Japanese via military invasion by the West. The swift reaction of the Japanese remains a marvel. Nearly alone of all the Asian cultures, they managed to turn this to their own advantage and to use it to rebuild their military dictatorship in a harsher, more effective form.
Acting as the private banker for the ever-expanding Sumitomo enterprises, the Sumitomo Bank experienced smooth and rapid growth. In 1912, in need of further capital, the bank was incorporated and made a share offering. In doing so it became the first Sumitomo division to go public. Between 1916 and 1918 the bank established branch offices in San Francisco, Shanghai, Bombay, New York, and London, and an affiliate, the Sumitomo Bank of Hawaii.
Note how the Japanese immediately began expansionist policies. They learned the modern banking and industrial systems from Westerners who were, incidentally, struggling to figure out all this, themselves, at the same time. The West was pleased that Japan was so cooperative and open with them. But lurking in the background was the desire to establish total control again and the Japanese efforts always ends up acting in this way. The deeper cultural model remains.
Japan emerged as a major world power following its victory in the Russo-Japanese War in 1905 and, later, after World War I. This new prestige afforded companies like Sumitomo new business opportunities throughout Asia as Japan became a colonial power on par with Great Britain, the United States, the Netherlands, and France. The Sumitomo Bank established an interest everywhere the Sumitomo group went--Korea, Formosa (Taiwan), and China.
The penetration of China, Korea and Taiwan was first, commercial and then, military. The military rule was not benign, either. It was as harsh as the Tokugawa rule of Japanese peasants. The merchants preferred this system because it allowed them to charge high rates, control markets and work people to death. So they cheerfully funded the military which was basically, their enforcement arm.
The Sumitomo Bank spun off a division of its own in 1923, when its warehousing arm was incorporated as the Sumitomo Warehouse Company. Two years later the Sumitomo group broadened its financial activities by taking over the management of Hinode Life Insurance, which was renamed Sumitomo Life Insurance the following year. Despite the creation of separate Sumitomo corporations--Sumitomo Machinery Works, Sumitomo Fertilizer Works, Sumitomo Mining, and so on--the Sumitomo group remained a closely knit conglomerate called a zaibatsu (literally, a "money clique") whose constituent companies owned collective majorities of shares in each other.
The power of the various zaibatsu was greatly resented by a quasi-fascist element in the military that rose to power during the 1930s. Advocating Japanese supremacy in Asia as well as a more equitable distribution of wealth, these militarists were bent on the eventual nationalization of the zaibatsu. But because the zaibatsu made up Japan's military-industrial complex, they were essential to the militarists' plans for conquest.
When Japan modernized, they looked at all the world's systems and chose one to copy. Their resounding choice was to copy...PRUSSIA. They were very impressed by Bismark. To this day, though it is now dissolving rapidly, the Japanese schools were a throwback to pre-WWII German schools complete with uniforms and winnowing out the smarter students from the lesser minds at the age of 13 via stringent tests. I went to school in Germany at a classic girls-only Gymnasium. We had to stand at attention when a teacher entered the room and salute them properly, for example.
The German military/fascist model was also copied. And the industrialists imitated Krupp and Zeiss, they set up relations with the government that were very similar to Germany's system. This thumbnail history I am quoting here is excusing Sumitomo for their crimes. For far from hating the military, they were the sponsors of the military and worked closely with the General Staff and profited from all this. All Japanese mining and industrial organizations used slave labor, for example. Quite brutally and cheerfully. Indeed, we must note how they work to create the Tokugawa system over and over again!
The zaibatsu were uncomfortable in their cooperation with the militarists: they stood to profit from Japan's expansion, but they also faced disintegration if the plan worked. Nonetheless, the Sumitomo Bank helped to finance the military's preparation for combat. Many Japanese considered the war a patriotic cause, seeking to remove western imperialists from Asia. But most Japanese companies, regardless of their reservations, were treated according to their cooperation with the militarists after World War II, and the Sumitomo companies were no exception.
The Germans were forced to face the facts about their militarist past and their industrial system enabling this. The use of slaves, the need to loot natural resources, all this was punished. But curiously, in Japan, the need to fight the Korean War killed all attempts at re-educating the Japanese and they have worked very, very hard to hide their ugly past and to paint it in pretty colors. Just like with Tokugawa Japan, we love the art and the culture without understanding the brutality of that reign. I have a book of old photos made when the West came in. The horrible poverty is heartbreaking!
And the malice! Virtually no wheeled vehicles were allowed! Bridges were torn down. The countryside had a desultory look as starving peasants barely eked a living out of the land. The samurai were increasingly poor. Money vanished as circulation was restricted. Despite this, the merchants did flourish...VIA LOANS. This was very medieval. And wherever the Japanese empire planted its flag from 1890 to 1945, money became increasingly rare or worthless and barter took over and slavery increased. The Co-Prosperity Sphere was a fraud.
Despite the militarists' desires, the Sumitomo group, having taken over a number of formerly independent or associated companies, became larger and more concentrated as a result of the war. After the war the Allied occupation authority imposed a series of antimonopoly laws that broke the zaibatsu into hundreds and even thousands of smaller companies. Each was forbidden to use its prewar name or to engage in cross-ownership of stock. The Sumitomo Bank was reorganized under this plan in 1948 as the Bank of Osaka.
A relaxation in industrial laws in 1949, and again in 1952, permitted the former Sumitomo companies not only to conduct business with each other, but also to resume use of the Sumitomo name and cross-ownership of stock. The zaibatsu re-formed, and the Sumitomo Bank became its coordinating entity.
HAHAHA. Sumitomo grew BECAUSE of the military rulers at the top! The US tried to break this up but due to the need to strengthen Japan quickly to stop the Soviets and Chinese communists, we allowed this monster to rebuild itself and to resume its program hatched 200 years earlier. Note how they constantly resume consolidation of economic power. The entire Japanese system does this. They allow foreign penetration only to learn how the foreigners operate and then they carefully pluck the goose and cook it. Gradually but firmly, foreigners are pushed out again and the zaibatsu gets stronger.
The property/investment bubble of 1987-1990 nearly wrecked everything. When it popped, Japan's zaibatsu leaders were frightened that Westerners would flood into the country and take over. On top of this, other Asian giants were interested in turning the tables on Japan. So they hatched a very old scheme: the eternal depression.
This depression meant few foreigners would be interested in investing in Japanese companies or banks. If everything is poisoned with declining values or profits, foreigners would stay away. This cruel solution meant the workers would have to suffer and I will note that this choice was quite popular with the zaibatsu! They did this several times in the past as we can see from the thumbnail history. Note that today, Toyota still wants to work people to death. And they feel no shame about this.
Back to the Japanese system: the Bank of Japan is an arm of the zaibatsu system. They enable this process of building up bigger and bigger entities. Sumitomo group is one of the biggest entities on earth, for example. They keep the lower level staff unaware of the whole system. But at the top, you can bet the president of the organization has an open door to whoever is running Japan, politically. They are one and the same. The LDP has run Japan ever since we allowed this new form of dictatorship reorganize itself after 1950. They do have elections and the possibility that the LDP might lose its stranglehold on the government has all the big bankers and industrialists sweating bullets. They will do anything to prevent this system from changing!
And this goes in spades with their beloved depression. The Japanese ruling corporations LOVE depressions! They get richer and stronger with these! Note that they didn't go bankrupt in the Great Depression. They EXPANDED. Hugely. Via the military. In the Edo period, they flourished. This is why they backed the samurai against the Emperor. When the samurai took over again, they backed this to the hilt. Literally.
So I am not shocked to see them imposing a depression and then happily moving forwards. Here is a story from the early years of this Neo-Tokugawa scheme:
January 28, 1995
In what analysts say was a signal of the first annual loss for a major Japanese bank since the end of World War II, the Sumitomo Bank said today that it expected to report a loss of about $2.8 billion this fiscal year as it writes off mountains of bad loans.
The announcement, which stunned bankers here, reflects the magnitude of the bad-debt problem afflicting Japanese banks. But the move by Sumitomo, the third-largest bank in the world, was also praised by analysts as a bold attempt -- at least for the normally conservative Japanese banks -- to bite the bullet and resolve problems quickly.
"It's a gutsy move," said Alicia Ogawa, an analyst with Salomon Brothers in Tokyo. "It's completely unprecedented. It will make other banks answer the question of why they are not doing that."
Many major banks in the United States have had losses from writing off bad debts. Investors often regard these moves as positive for the long run because they speed the cleanup of the balance sheet.
But in Japan, analysts said, the all-powerful Ministry of Finance has restrained banks from reporting losses for fear of undermining public confidence in the banking system.
As a result, banks have been disposing of their bad loans bit by bit, and selling stock in companies they own to compensate for the write-offs. "If every bank did not take equity gains, every bank would have a net loss," said Elizabeth Daniels, banking analyst with Morgan Stanley & Company in Tokyo.
The slow disposal of bad debts, however, has been delaying Japan's recovery from a three-year-long recession, because banks weighed down with bad loans have been reluctant to lend new money.
A misconception in the West is, the refusal to 'clean up' at the Japanese banks led to bad things. As far as the Japanese are concerned, things went remarkably well when they played the game the old Japanese way, not the modern Western way. The reluctance to lend meant the Bank of Japan could institute the program we see today: they can drop rates to literally 0% and loans do not appear anywhere in Japan EXCEPT for within the zaibatsu system. Namely, they are loaning to EACH OTHER and cutting those pesky peasants out. If the peasants need money, it is like in Tokugawa Japan: brutal rates of interest are charged. Even while everything at the top is free money, at the bottom, it is NOT free at all! Not even slightly.
So consumers can't consume but this doesn't bother the guys at the top. They are busy trying to take over the economic systems of the world via the cheap loans, weak yen and expanding foreign markets! I will note here that the biased West will yell about slave labor in China or India but NOT in Japan! Toyota can work people to death and get no bad publicity or punishment. The Japanese government is very much responsible for this sort of cruelty. They pass few laws protecting workers and they conspire to keep this depression straight jacket on the working class. And they do this with the connivance of the big financial houses in the West.
Who want to imitate this system. This is why the US has passed draconian bankruptcy laws that apply only to peasants, not the super-rich and their corporate arms! Donald Trump can go bankrupt and then rebuild his empire while going deep into debt yet again, for example! His present profits are not garnished to pay off previous investors. We just saw a huge property bubble form and break. And it is breaking all over the world. Europe is just beginning to feel the effects of this. England is definitely sliding down the same slope Japan and now, the US, are sliding.
The Japanese solution to the lending bubble is quite Japanese. But like all systems, people imitate what works and the Japanese system of killing inflation while seeing commerce at the top grow like crazy is one that all of the ruling elites in the West are watching and thinking, they can do this too. Note how all our central banks worry endlessly about 'inflation' and hope to have us in a totally non-inflationary system. And there is only ONE model for this: Japan! Ergo: we will imitate Japan.
This worries me a lot because perhaps the Japanese people don't mind living miserable lives and don't care if they are worked to death. But I don't think this is a good plan for everyone else. I would suggest any attempt at implementing this scheme will lead to explosive violence in the West. Already we see the seeds of this in Germany and France, for example. In the US, we are still getting loans but more and more, we are being pushed into higher interest loans. Already, if one has a credit card, the loans can shoot up to 33% in an eyeblink if one makes any mistakes like forgetting to pay on time. This is usury, of course. Now we see houses being sold this way. A super-cheap 'teaser' rate and then it shoots to 7-11% and then, if things get worse, 30%! In other words, we have to use credit card terms to buy real property! And in the end, this will bring about a depression.
On top of all this, the modern Japanese banking system is based on PREVENTING SAVINGS. Sumitomo wasn't really a bank, it was a money processing system that worked for its own industrial system! The industrial sector was more important. The myth that the Japanese workers are saving money like mad is now as dead as Toyota factory hands worked to death. Why would anyone save if the savings return from the bank is only 0.5% a year? Eh? Just 30 years ago, the Japanese savers got over 5%. Making saving money a worthless joke means the banks make their profits elsewhere.
I would suggest, via their industrial partners. Both are growing at a good clip while attracting no savings from the working class. This cruel system is being prepared for us.
I sympathize. Thankfully I don't use my mitsui sumito account much but the times I have to, it's always a pain. They gave me a credit card / debit card right when I opened my account though. Although, the expiration date on the card was only good for 3 month -- thanks for the trust. And when it expired they didn't even send a new one.
I suspect this has less to do with foreignness and more to do with Japanese being violently afraid of Credit Card usage. Granted it's getting better but still, it's few and far between when you can go out for a night of drinks and expect to pay with plastic.
And the ATM situation is ridiculous. Not only that, but the limits on hours of usage -- no Sunday night transactions. You can't update your bank book in the ATM after bank hours. And like you point out, the amazing inability to use a foreign card in anything other than scarce foreign ATM outposts or the random city bank sprinkled in Omotesando or Shinjuku. And then you go to a country like Cambodia and have no problems finding an ATM taking foreign cards.
This was from 2005. Easy credit swept the planet but not Japan. Even though Japan has a considerable computer system and a centralized financial system, the retarded way they ran everything compared to even third world countries is not random chance. It is deliberate. Restricting the use of money, the availability of money, forces the Japanese to do things the government wants. For example, the government and the banks let the Japanese know it is OK to make money playing FOREX games. So desperate Japanese housewives who could no longer save money in banks, rushed out and started betting against the yen.
The central bankers then boasted to the Chinese, the yen would drop to 130 to the dollar while the Americans hammer China into raising the value of the yuan. Then Japan's zaibatsu would then invade China's markets and dominate them. This made China turn the tables and they even called upon the Chinese people to retaliate and buy yen to force the yen up! And this worked. The Japanese struggle to get the yen to drop to 110 to the dollar. Lending money to Japanese consumers so they can buy cheaper Chinese goods frightens Japan's rulers no end! Sumitomo must prevent this at all costs! Even if it means ditching their bank into the China Sea! They will kill commerce.
Which is the exact opposite of the Western system right now. But the Western bankers and money makers are quite envious of their Japanese counterparts! Ford and GM would DEARLY love to work people to death! So we are in grave danger from Japan, our ally.
I do not want readers to be unhappy so I deleted all of the Goldman Sachs portion here. Again: the secrets of these people are very important. I can keep, in my own brain, whatever I know. but getting witnesses who can discuss things in public is very hard.
This is how the US operates. 90% of what is really going on has to be obscured or OCCULT. And this occultation of the way things work is life and death. I can't go off and prove much of anything due to lack of witnesses. This is how the Mafia operates. They call this 'omerta.' The Japanese do this all the time, of course. As well as others. The Chinese leadership told me long ago, I shouldn't interfere. Some of them still hold a grudge. As for the CIA: everything has to be secret. The entire history of secret doings is their bread and butter. Even former agents outed by Karl Rove and President Bush cannot name names or talk about their work or they are arrested.
People think we live in an open world filled with free information. But the dark knife of omerta is the actual situation. I will write more about the history of money and how they reward/punish people in the future.