Elaine Meinel Supkis
The rosy news and happy faces on Wall Street are because the status quo has been saved: Japan just got the green light from the International Monetary Fund to CONTINUE NEAR ZERO INTEREST RATES! The carry trade will continue! But there is a very dark cloud on the horizon: one that surrounds a very angry dragon that breathes fire. This, I say, is why China gave dark hints to the financial traitors running America, that if they continue to demand the yuan rise while assisting the drop in the yen and dollar, open trade war will commence right after the Olympics!
Here is my blog posting about China's threat, yesterday:
China is now threatening to yank on our leash because we are giving them problems. I expected this to happen about now. The US is ignoring this, of course, hoping to keep the fluid red ink money flowing via Japan but I expect the Chinese to use their FOREX reserves to snag the yen.
I knew all this was about the yen, not the dollar or yuan and I am right. The Chinese got wind of this announcement by the IMF today, yesterday.
Interest rates in Japan, the lowest among the major economies, are appropriate and the central bank needn't rush to raise them because inflation isn't a threat, the International Monetary Fund said."Monetary policy remains appropriately accommodative, given very muted inflation risks," the Washington-based fund said Monday in its annual review of Japan's economy. "A return to a neutral monetary stance should proceed in tandem with inflation prospects."
The fund forecasts an annual inflation rate of zero this year and 0.5 percent in 2008. Growth in the economy will slow to 2 percent in 2008 from 2.6 percent this year, the IMF said.
We fought communism because they oppressed the workers and kept them poor. But when Japan's government does this to the Japanese, all we talk about is inflation! Slaves have near zero inflation! Pay people nothing and they cause 0% inflation! Japan has not been in a depression for years and years except this is a very singlular depression: the workers have seen their wages fall and fall and fall and their prospects grow dimmer and dimmer. The whole nation is aging and dying and the young are not haveing anywhere near enough babies to even replace the population and the nation is shrinking. Japan allows 0 immigration, even guest workers are frowned upon. Europeans and Americans who go there discover they can be murdered by Japanese businessmen and no one goes to prison. Zero rights, zero integration.
Japan's population shrank to 127,053,471 as of March 31, dropping by 1,554 for its second consecutive year-on-year decline, a government report released Thursday showed.The number of elderly, defined as those aged 65 or older, rose to 26,675,163, constituting a record-high 21.0 percent of the population, reflecting a sputtering birthrate and rapidly graying population. The elderly were 20.3 percent of the population last year.
Deaths deepened the population decline by hitting an all-time high of 1,081,174, up 8,893 from the previous year.
This blunted the surge in births, which actually rose for the first time in eight years to 1,091,917, adding 26,384 people between April 1, 2006, and last March 31. Births fell to a record low of 1,065,533 births last year.
This ferocious society run by what looks to me to be gangsters, has set up a cruel system whereby, if raw material costs rise, the workers must soak up the inflation alone, themselves! I have shown the Bank of Japan's statistics they publish themselves showing how profits have soared, land values have been rising, the GNP has been going up and up the last 5 years, nonstop, the FOREX reserves has grown monstrously from $150 billion to $1 trillion and all the while, the Japanese government and their sneering bankers have shouted, 'We are in a terrible depression, it is getting worse, the more the world has inflation!' Which is totally insane for the world's #2 economy and #1 export profit holder!
Japan pumps no oil. Japan has few mineral resources. Japan can't feed itself without imports. Yet they have the world's biggest trade SURPLUS! Not China, Japan! China has a big surplus with the US but this is only because Japan is colonizing our industries so they escape the 'import' label. But reap the profits which is why their profits beats everyone.
Since Japan is ravaging our auto industries and is bankrupting us as well as flooding us with carry trade funds that are being used to bury our finances under a mountain of debt, one would imagine the US would be furious with Japan and fighting tooth and nail, not assisting Japan in this fraud! But then, this is why I keep talking about treason: when people dig our grave, we must assume they want us dead.
From the Japan Times:
"There are spillover effects to the rest of the world, but in the end, Japan's policy should be focused on what is best to sustain their recovery," Daniel Citrin, IMF deputy director and mission chief for Japan, said at a news conference in Washington.IMF economists are surprised that inflation remains subdued even as the economic expansion is in its fifth year, Citrin said. He said a long history of low inflation may have suppressed expectations for price increases.
"The fact that Japan has such low inflation at a time when the country is approaching full capacity is a bit of a puzzle," he said.
AAAARGHHH! This man, Mr. Citrin, is either utterly clueless, totally stupid or...a traitor. He could be and probably is, all of these. Mr. Cretin works for the US but is stationed in Japan. He has been obviously a person of interest to the Japanese who are not at all shy about bribing people. They bought President Reagan for a mere $2.5 million in 1988 dollars. About $5 million in today's dollars. So, this financial genius appointed by Bush to care for our interests vis a vis our Japanese masters, can't figure out how a nation at full capacity, importing most of their industrial raw material in a world of great inflation in these materials, manages to have DEFLATION! He could read all of my past postings on this matter. There are plenty of things here explaining this little magic trick of theirs.
The Japanese workers, despite nearly zero good information about their afflictions, have had enough when the government two months ago suddenly noticed the fake depression was collapsing and so they instituted this ridiculous sales tax that was squarely aimed at the working class and retirees. In turn, they turned out to vote out these gangsters! Abe is now on the ropes and going down, fast. If there is another election, even if he tries tricks like closing the polling stations at 4pm, for example (they tried this last time!) he will see the end of the power of the LDP.
I am disgusted with the American media that either has been utterly mum about all this or openly lying. You would think, when the news that Japan, for the SECOND TIME in four years, has tried to raise the sales tax to kill sales should have clued even idiots like Mr. I aM a Fricking Cretin that the honesty of his Japanese friends and his Japanese drinking buddies is FAKE. They are cheating him! They are lying to him! Gaddddddssss! What does it take to clue in idiots like him?
From the same article:
The IMF also praised Japan for refraining from intervening in the foreign-exchange market since March 2004, and it said the yen "should continue to be market determined."Directors added that the yen appears to be undervalued according to the IMF's economic models and can be expected to strengthen "over time." The IMF said the yen is now at its weakest level in about 20 years.
AAAARRRRHHHHGGG! Gads. Jibber me timbers. Thar she blows! Good grief. Japan's central bank no longer had to interfere like they ALWAYS DO because of the...carry trade! Duh!!!!! Now they have an even nicer tool: Japanese savers, disgusted with 0% return on their money, using their yens to bet against the yen all over the planet every hour of every day! So they 'clean out' around $14 billion a day doing this! And the Bank of Japan simply has to keep interest rates at .5%! Voila! The yen is weaker than the dollar!
The news for the US is hideous so the dollar has bee so weak this week, the yen has been growing stronger. Instead of moving from 120 to the dollar to 130 to the dollar, it has risen to 117 to the dollar and the Bank of Japan is getting pissed off. Now the worst of all this is, the Empire of the US with our fiat currency, the dollar, should NOT want a world whereby the value of our dollar is determined by whoever throws around the money at any given point in time. If we do want this, we better have a FOREX reserve that is bigger than anyone's..to protect the dollar! We should NOT want a weak dollar, this is bad. Bad! Bad!
Here is the USA IMF numbers and talk about weak! Many second tier countries have more in FOREX reserves than us!
And here is Japan: look at the fruits of 15 years of 'depression'! There is so much money under the futon, it is crushed against the ceiling!
If the Federal Reserve were my dogs, I would have them lined up and I would be saying in a stern voice, 'No, bad dogs. Bad. No, you don't touch this. No, you can't piss on this.' And they would hang their heads. But my dogs are loyal and protect both me and my property! The Federal Reserve people are out to destroy me and steal my property so I will whack them with a rolled up newspaper. 'Bad dog. Bad.'
For the first time in nearly half a century, the House of Councilors has an opposition lawmaker as its president.Satsuki Eda, 66, of the Democratic Party of Japan, was voted in unanimously as a four-day extraordinary Diet session opened Tuesday. His installation follows the opposition camp's capture of the Upper House majority in the July 29 election and the DPJ emerging as the chamber's largest force.
"I will strive hard so that the Diet is run based on justice and fairness," Eda told the Upper House after he was elected. "And together with every lawmaker (in the Upper House), I would also like to do everything in my power to ensure that the chamber lives up to the expectations of the public."
This is hell on earth for all hedge fund hell hounds: the new government might create 'inflation' by forcing up wages, strengthening workers and redistibuting wealth by cutting taxes on the working class and raising taxes on the industrialists and bankers who rule Japan so cruelly! Bravo for the Democratic Party of Japan! Banzai!
Under protection of Western imperial-centers-of-capital, and even as they “chanted the mantra of free trade and laissez-faire,” Japan's Ministry of Finance (MOF) and Ministry of International Trade and Industry (MITI) controlled the government’s budget; set monetary policy; collected taxes; supervised banks, brokers, and insurers; and established parameters for credit, asset values, capitalization, and lending. Through cross shareholding, designed specifically to prevent outsider takeover and to further their mercantilist goals, Japanese corporations were owned primarily by each other.4Japan's collapsed land and stock markets (at their lowest points down 75%) are not the total failures they are loudly touted to be.a The preceding bubble economy was specifically inflated to create finance capital with which to build more industry. Earlier we described how Japan first industrialized in the 19th-Century through selling government-built industry to Japanese industrialists at possibly 30% of construction costs. After WWII, the same rapid industrialization was accomplished through high product prices being protected from imports by arbitrary health, safety and quality standards which permitted charging Japanese consumers three-times the price for consumer products as that paid by the rest of the world.5 Those high prices were only a hidden tax that, along with other dictated policies and creative accounting, gave Japanese industry the same free finance capital as it received 100 years earlier.
The free ride of the Japanese industrialists has rolled on its greased tracks thanks to their generosity of sharing this money with the US and European financial houses in the form of 'carry trade'. This new scheme was created when the US dropped interest rates to 1% and the real estate bubble took off. The Japanese saw this and said, 'Goody gum drops! Hey, we can drop to 0% and get away with it and we will loan these guys this money and get them hooked!' So they did: the present system, set into motion after 9/11, has utterly addicted our financial houses with the notion, they MUST keep the Bank of Japan money FREE for fucking FOREVER! And these guys will be trillionaires and so what if this destroys the EU and USA! Who cares!
Everyone will decamp to all those nifty islands and tiny kingdoms run by royals! From Bermuda to Dubai, from Lichtenstein to Monaco, they can live on their yachts and float around the Seven Seas and ignore the Great Depression, part II.
Japan, because it had few valuable natural resources, was the only country not culturally, racially, and religiously tied to Europe that escaped domination during the expansion of the European empires period. Until Taiwan and South Korea (and now China and Southeast Asia) were industrialized, all under the same protectionist barrier to contain fast expanding socialism, Japan was the only non-white society to industrialize and join the club of wealthy nations.14
Oddly enough, because Japan has little gold and little material wealth, they were left alone unlike the Chinese or Indians. Since the Japanese are a very closed society, even more than French Montreal (heh, I joke), they were able to repel the foreign invasion while embracing the cultural aspects of the West, a very signifcant achievement. The US, for example, used banking houses in Manhattan to use their other banking outfits in South America to transfer war ships and war ship technology to Japan despite Britain trying to keep a cap on this because she and she alone wanted to patrol the Seven Seas.
Back to today before I get lost, musing about history: China is already very angry about the G8 nations attacking them for the value of the yuan while not attacking Japan for the weak yen! They let it be known, if this continues, they will begin to change the way international currencies flow. With the world's biggest FOREX reserves, they are not blowing hot air, they can do this. They will probably work with other Asian industrial powers to start forcing Japan to pay in yen and not dollars when doing business. This will have significant reprecussions.
The US and Japan love the present status quo. It is killing both of us but we love it nonetheless. And like all status quos, our rulers will keep it going until it utterly destroys us which is why empires rise and fall.
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