Japan's Steel Companies Demand 10% Price Hike!

Elaine Meinel Supkis

Japan's steel companies decide to reveal real inflation: they demand Toyota pay a 10% hike in prices! Oh, the hilarity this is causing me! So much for the vaunted 'less than 1% or even below 0%' inflation in Japan! And Greenspan says the obvious, that USA bonds will have to hike interest rates to attract irritable Chinese government buyers or ill-tempered Japanese government bankers. So the USA and world stock markets scream and fall off a cliff. Can they be saved by restoring the present goofy, destructive system?

From Market Watch:

The yield of the benchmark 10-year Treasury bond rose to 5.246% after an auction of new issues showed lukewarm demand and after stronger-than-expected inflation out of China.

The market again took its cues from the bond market. Treasurys were pressured by overnight news that China's May inflation accelerated at its fastest pace in more than two years.

Adding to those concerns, an auction of 10-year Treasury bonds showed waning demand.

A short reprieve was seen after a speech by former Federal Reserve Chairman Alan Greenspan, who was quoted by press services as saying he is not worried that foreigners will sell their Treasurys.

Right on the heels of Smith commenting to me that I sound like a well-worn squeaky wheel when talking about international monetary markets, along comes more news confirming that I was right all along and the fact that I have slowly, over several years, made my case with near perfection. Namely, the present system set up by the US Federal Reserve and our supposed allies has turned into a monster that is destroying America's future by allowing our government, the Federal Reserve and the people of America to live entirely and totally and continuously...IN THE RED.

Oh, I know that temptation well! Easy credit leads to recklessness but I assure everyone, that if one pays off everything even if this means living in a tent on a snowy mountain for ten long years, it is well worth it if the goal is to clear away debts and to set up true investments. Today, both stocks and the US bond markets hammered each other in an ugly one/two/one/two punch. I wrote just this morning that Japan, our other banker, has threatened to dump our bonds! This is no idle threat, it was done because the US government is going to hammer China over their currency which has been rising against the dollar nearly nonstop this last six months unlike the yen who dropped from 105 to the dollar last year to a hideous and totally fake 121 to the dollar this year, the only major currency in the world to go DOWN vis a vis the dollar.

The latest economic data from Japan clearly shows they have a totally fake currency and since they are #2 in every catagory but trade profits where they are way far away above all others as #1, the weakness of the yen is due 100% to currency manipulations by the Bank of Japan which has refused to pay savers in Japan virtually any interest on their hard-earned money.

And despite incredible data showing Japan is reaming out everyone in trade and industry, the only stockmarket to have NOT soared this last year has been the Nikkei!

Here are some of the headlines in today's Nikkei report:

Just amazing, isn't it? The only nation to have zero or negative inflation, Japan, is suddenly raising prices! 10% in one day is quite a hike and I suppose the steel makers in Japan demanded this, they are paying the price for Toyota's sales to the USA. This very manipulative system set up by Japan is a pox on world free trade. Why this was allowed for so many years is hilarious: it was to stop China and Russia and contain them!

Well, we have an even bigger trade deficit with China and Russia has Europe in its oily jaws and both are our bankers, holding nearly $2 trillion of excess American dollars and nearly half a trillion in bonds. The other headlines are about how the banks now have to regroup and defend their own turf as the silly scheme to have the yen die is having a side effect: China can buy up more and more yen now and if they want, they can make the yen very strong! Namely, the only way out would be for Japan to create hyperinflation! This would destroy Japan's economy, of course. I have no idea what dirty trick they will come up with to evade this future but I suspect part of it is to goad America into a trade war with only China while Japan destroys our auto industries.

Back to Greenspan, the idiot who helped Japan turn the tables on the Plaza Accords and instead of a strong yen, let them weaken the yen enough so they could undermine our home industries:

From Bloomberg:

Former Federal Reserve Chairman Alan Greenspan defended his comments on the economic outlook, saying observers overestimate his impact on financial markets and stressing that he doesn't talk about interest rates.
*snip*
Benchmark 10-year Treasury notes extended their losses today after Greenspan predicted an end to a global surge in financial liquidity and higher bond yields.

Of course, bonds will have to have higher interest rates! The present system can't run with just Japan buying all the bonds issued by the USA, our government and the Federal Reserve issues way, way too many for Japan to hold! Indeed, for a while they were selling under the table and not one media reported on this except for this blog (hahaha) but now they are buying again except this is pissing them off which is why they switched to threatening us again with selling off to the Chinese and the Chinese are meeting us again this month and they have a big briefcase of 'Do this or ELSE' on hand and the 'ELSE' is their refusal to buy our bonds which will force our reckless wild spenders in DC to peddle this red ink at large and I expect bond rates to shoot up high enough to tempt me if I thought our government won't cheat me by reneging on any bonds I do hold!

And guess what? Japan is spending less and less at home and if we think we can do the opposite, we are nuts! And if we think China will let us spend half a trillion on our military and not hand over Taiwan, we are nuttier than a squirrel in a bag of peanuts at a ball game.

So, thanks to the people holding several trillion dollars, being reluctant to buy our bonds unless we really sweeten the deal, we see chaos in world stocks. This is why the stockmarket is tanking. If the Bank of Japan were to come to the fore and assure everyone that inflation in steel didn't jump by 10% in one day, well, pigs will fly and the squirrels will throw peanuts to the monkeys in the zoo.

All the hedge funds and funny money men who depend on the Bank of Japan faking inflation figures will now end! Japan has admitted there has been significant inflation! How on earth can the price of steel in Japan jump this great so suddenly? Eh? Hello! And Elaine is always right in the end! Har.

From the Street.com:

Lately, Melco shares have been slammed because of fears about the Chinese government's recent decision to restrict travel visas to Macau, the only region of China where gambling is legal. There also has been a rising short interest in the stock.

On Tuesday, Melco shares were down 4.9% to $12.50, hitting a 52-week low.

But Melco's management is finally taking steps to reassure investors, who have watched shares fall 35% since late April.

Melco recently hired Geoffrey Davis, a former Citigroup casino analyst, to work as a senior vice president handling U.S. investor relations, says a buy-side source who owns Melco shares. Davis is based in the U.S. and has already held meetings with several institutional shareholders, the source says.

And the Chinese dragon: it isn't dumb. Ah, ha! Way back when the Chinese government asked me to host a bunch of soon to be high government officials, I was told, they wanted to learn about capitalism. Well, they decided one day after seeing TV commercials about happy gamblers, to go to Atlantic City and get rich quick. I warned them they would be fleeced and explained how casions work. 'Look at them: they can't build these flashy buildings and all that unless they always win in the end!'

Well, the young Chinese future bankers and export officers drove away, sneering at me. They came home the next day, broke. I taught them some tough lessons afterwards. 'Always be the bank! Don't let gambling into your country or you will end up bankrupt!' Anyway, the USA now has gambling and bankruptcy everywhere and we are deep in the red and the Chinese leadership remembers that letting gambling into China means the end of the Chinese people's ability to balance books and be sane. So they are treating it like opium: a dangerous addiction!

And I am not surprised to see them cutting off access to gambling houses! If Chinese come to America to gamble, this is OK since it is far away. Macau is close! It is funny our stock market depends on gambling casinos ripping off zillions of dollars, wasted money that should be used to create capital for investment and now we need it to look rich! Encouraging it so money flows to the government! Gah! In the beginning of the Industrial Revolution, sober non-gamblers who were devout Christians who hated gambling is at the root of the investment of money into things that involved working harder and better. This is still true today.

From Marketwatch:

Now Wall Street has invented a revolutionary new market strategy exclusively for the trillions of unregistered securities they're selfishly creating. For example, Goldman Sachs' new GS TruE (for Tradable Unregistered Equity). Unfortunately, this further disconnects Main Street from Wall Street as the inequality gap widens, further inflating the bubble as frustrated Americans shift from investing to spending.

And speaking of gambling, adding trillions of UNREGISTERED, misnamed 'securities'? Eh? There is nothing 'secure' about these instruments: they are as secure as my Confederate money or the gold certificates from 1929! Right. As secure as a dollar bill lying on a street corner in the middle of the day. Goldman Sachs runs our Treasury and this shows: as our money value dwindles and as our red ink flows, Goldman Sachs runs more and more gambling casino operations using world finances as a game to make their top officers very rich.

From the Financial Times:

Russian president Vladimir Putin called on Sunday for a radical overhaul of the world’s financial and trade institutions to reflect the growing economic power of emerging market countries – including Russia.

Mr Putin said the world needed to create a new international financial architecture to replace an existing model that had become “archaic, undemocratic and unwieldy”.

His apparent challenge to western dominance of the world economic order came at a forum in St Petersburg designed to showcase the country’s economic recovery. Among 6,000 delegates at the biggest business forum ever held in post-Soviet Russia were scores of international chief executives including heads of Deutsche Bank, BP, Royal Dutch Shell, Nestlé, Chevron, Siemens and Coca-Cola.

Oh, are we in trouble. Putin is saying what Hu and Wen have told him behind closed doors. Namely, the wish of the USA that the dollar cease being a world currency and to let it drop off the damn cliff and fall further than even the yen can fall....this wish will come true! As the Chinese explain economic facts to our own negotiators, all of whom are traitors, well, out of this will come all kinds of funny statements designed to paper over the reality that the US can't pay 20% interest on Federal bonds and has decided the Chinese Dragon will continue as is and we will creep away and Congress will happily vote to spend more money, more, more, on wars, more wars in the Middle East and Israel will get another $15 billion in finances and Europe and Japan will continue to sell to us and not buy from us and we will become a has-been empire and what will happen next?

NEVER has the transition from one empire to another not include vast wars. And the USA has troops in 120 nations! So this means a world war, of course.

Or we can do the fiscally sane thing and stop all this red ink! GADS. What does it take?

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Comments

[Liberal AND Proud]

Interest rates going up?!?!

How can this be? There are millions of Chinese child laborers that can be exploited to ensure a steady supply of cheap goods to the US and a stedy supply of dollars to be recycled back to the U.S. to purchase debt.

The Chinese menace must be made to understand that the USA is the sole economic and military power in the world! We are an EMPIRE!

LOLOLOL!

I crack me up!!!

[teddy]

Foreclosures exploding up, yet gasoline consumption in US sets new record, incongruous, but true! We need an energy policy change immediately!

[Elaine Meinel Supkis]

Yes, isn't this odd. Spending is up but so is bankruptcy. Badly.

[blues]

We are now a nation of compulsive, out-of-control omni-addicts. If we are given the slightest taste of anything remotely pleasant, we must have more, more, MORE!!! Why? Well we have had it drilled into us by watching TV, and going to schools where the teachers are paid by putting up advertisements aimed at the students right in the schools. More, more, MORE!!! We are the nation of MORE! And if, for any reason, we don't always get MORE, that means the ECONOMY GOD hates us, and will set like the sun, and we are sure to freeze in the dark. Once we get a taste of something, we must always GET MORE to appease the ECONOMY GOD — for this verily is written on the walls of the classrooms, on the sides of busses, and repeated EVERY 15 MINUTES on every TV! MORE!!!

MORE processing power, MORE driving around aimlessly at MORE speed, MORE cheap junk from MOREmart. MORE!!! MORE!!! MORE!!! Even when that banker who holds the actual deed to the house comes around to kick us out, and we are forced to decamp to some rented replica of what we once owned, we must still manage to grasp MORE of the STUFF mentioned above. We simply must. (This very thing actually transpired in the case of my own cousin. HE had a giant house for about 30 years, where I actually put in the electrical wiring, lost it but continued to live really high.) The power of MORE!!!

Meanwhile, in the 'halls of power', well I have this theory about the chickenhawks. They hung one of their very own, Saddam, in an insanely bloody fashion. They are chickenhawks for sure, but not so much because they fear death all that much, as they are truly bored with life to begin with. No, they will never get down in the trenches with the riffraff, never. But they won't too much mind being hung. They are pirates, after all. Traveling around the earth looting and plundering. (And they ain't got no 'loyalty to that 'merica, neither.) They really don't give a shit about anything. For the first 1/3rd of my life, I thought the dolts at the 'great universities' must have all this figured out. If they do, it's not what they've been teaching, and besides, they are much too busy acquiring salary increases to bother anyway.

Meanwhile, the great moronic masses struggle with the all-important issues of gay marriage, abortion, and whatnot. A great ship of pirate fools we have become.

I read an obscure comment the the other day on some obscure blog where some of these issues were discussed. Suddenly this Amerind pops up, and says [Just paraphrasing] "I just live on the rez, and I could give a fuck what you insane Americans do; enjoy your fourth of July, but it's nothing to me. I don't even care what crazy trouble you American's are in at the moment."

[Tamahagane(Japan steel)]

I'm interested in history of samurai sword.Emperor of Japan "Tennno" is the last royal prerogative supported by ancient myth in the world.
The Oldest japanese myth literature "Kojiki" says that Imperial treasure sword was got by the god Susanoo from eight head dragon in Izumo.
Raw steel of samurai sword is only made by Hitachi Metals at Yasugi Izumo Shimane prefecture.However Hitachi Metals is famous high-tech steel maker,raw material of formal japanese sword is made by ancient steel making method "Tatara". Raw steel is called "Tamahagane"(Jewel like steel).
I hear that it is supreme one for sword making.I wanna get and forge it.

[Elaine Meinel Supkis]

Tamahagane, back when I did diplomatic things in Asia, I got to see the entire collection of Imperial blades that went back several hundred years. It was quite amazing. The swords were not all that long compared to European medieval swords. But the sharpness of the edges were amazing. Nearly flawless.