Currency Devaluation War Rages Ever More Violently

Protesters Just Broke Into Goldman Sachs’ Building In Milan And Wrote On Walls, which is the really scary part of the raging mobs business which accompanies all economic contractions.  Goldman Sachs once operated off of everyone’s radar but those days of hidden actions is now gone forever.  We all know in detail, how Goldman Sachs manipulates governments, central banks and markets.  

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Thanks to modern interactive media, people no longer are being channeled by the corrupt mainstream media and are now able to organize not just in communities but across the entire planet.  This direct ability to intercommunicate without the filter of either governments or the rich media owners has empowered people in ways that are still being explored.

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The Occupy Wall Street protests go global; while in one country slated for huge social cuts, riots hit Rome where the people yelled, Give Us Money’.  They figured out that the IMF and the international bankers who were rescued in 2008 are now demanding their pound of flesh from everyone else while they funnel ever more money into their own private bank accounts while demanding even more tax cuts and of course, free carbon trade credits so they don’t have to pay their own Bilderberg-created carbon tax that was supposed to stop CO2 growth!

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The G20 tells euro zone to fix debt crisis in eight days.  HAHAHA.  This is too funny.  The G20 has been at war with itself for quite a while.  For over 50 years, the key sovereign wealth nations of the G7 depended on exactly one scheme to enrich themselves: export to the US while refusing to buy from the US except in significantly less quantities.  To do this, they all did the exact same thing: they made their own currencies weaker than the dollar via holding US trade profits in various accounts so it didn’t recirculate.  They also used these seas of US red ink to bankroll lending.  This is why Japan could run up their domestic government debt to over 240% of their GDP.  An amazing misbalance, impossible to do without a huge trade deficit with the US.

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Germany’s sovereign wealth is now going down the tubes in order to bail out foreigners who are part of the loose confederation of states which Germany foolishly got enmeshed in.  Germans hate bailing out their trade partners.  The US isn’t being bailed out by Germany or Japan, on the other hand.  Instead, both plot as much as possible to turn the tables and increase the US trade deficit as much as humanly possible, that is, weaken the euro and yen as much as possible.

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This fix will destroy the US.  The US has thrown away all tools of the past which were designed to protect us from floods of imports.  Since the rulers of the US want to keep expanding our military empire, part of the deal is, as I have laboriously detailed in the past, the game is to put bases in a country, take over their own military and then let them export heavily to the US and thus, become enamored with us and then, become our ‘allies’.  The sad fact that this military imperial plan has a gigantic flaw, namely, it destroys the empire’s core, is lost on these lunatics.

 

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Here is an old story of mine from 2005 on October 11, nearly exactly 6 years ago, where I discuss the implications of the Federal Reserve hiding the true data of money creation within the Fed:  Culture of Life Financial News: Federal Reserve Will Conceal M-3 Monetary Aggregate To Hide Inflation

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Stark memo with no mainstream press trumpets, the Fed decided they are fed up feeding us vital financial information. So they will simply hide it from us so we can’t see how much money they are creating out of thin air.

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From the Federal Reserve:

Discontinuance of M3
On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.

Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).

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So, they will still continue to show us large-denomination “time deposits”– but they won’t show their own contribution to this! You can bet in a year, even that will be hidden from view so the mooing herd of investors can’t panic. You know, if you want to kill a lot of cows, you herd them in a large group into an ever tighter corral, smaller and smaller until each one is forced into the ramp that takes them into the slaughter house.

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Restrictions, restrictions. Note the currency that will be hidden from view will be the euro. Can’t let the Europeans see how the yen/dollar black hole operates. They must be kept guessing.

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HA!  See!  Yes!  Nail on the head!  I pointed out, with intense fury, that the Federal Reserve didn’t merely want to hide inflation facts from the masses, it also wanted to conceal future bail outs of the euro.  These ‘repurchase agreements’ were what the EU bankers and the Fed used in 2008 when the Fed SECRETLY lent them all, many of whom were private bankers and investment firms, over $16 trillion.

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It is worth clicking on my entire article above to read what I said.  I stand by what I say in most matters because I enjoy looking into the future and seeing reality.  To do this, one has to drop illusions and we have many illusions that are planted deep inside our brains, all the way to the subconscious.  Here is a funny news story from the Land of Insane Banks That Never Tell The Truth:  Japan urges Europe to reveal information on suffering banks – The Mainichi Daily News

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Speaking after attending a working dinner for the two-day meeting of the Group of 20 finance ministers and central bank governors starting Friday, Azumi also told reporters that the recent sharp rise of the yen against other major currencies has caused downside risks to the Japanese economy…The Japanese government purchased in January and June a total of around 20 percent of EFSF bonds, offering support to Ireland and Portugal. Its officials say Tokyo has not ruled out the option of buying additional rescue bonds, this time for Greece.

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When the huge bubble in Tokyo blew up in 1991, the Japanese government refused to force bankers to tell the truth.  So they all happily lied.  They pretended they were solvent when they most certainly were not solvent.  By allowing a huge real estate bubble to form, they all happily wrote contracts for property deals that were financially irresponsible and impossible to enforce.  That is, everything in Japan was grossly overvalued.  When it crashed, the portfolios held by these irresponsible banks were nearly worthless over time.

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Instead of amending the value of these ‘assets’ (remember, deposits are debits and debts are assets) they lied about the value of their worthless portfolios.  The government was scared about forcing these lying banks into receivership.  So all systems decided, if lending by the central bank were at zero interest rates, why, then the zombie banks there could happily go to the central bank for capital to keep on running.  This system was supposed to last for only a few years.

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This was exactly 20 years ago.  Japan can’t have interest rates beyond 0.2% or the entire system dies instantly.  They have been mired in this depression ever since.  To keep making money appear magically, they have to reduce something else and this something else was worker’s pay.  So the workers get less and less money while the bankers lend each other at near free rates while at the same time, charging workers high interest rates on loans!  This has killed Japan’s internal economic system.

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Worse, the bankers get richer this way while not paying taxes since government debt costs nearly nothing.  So, beginning in 1992, the Japanese government debt went deep into the red and continues there, becoming this immense debt balloon in the trillions and trillions of yen.  This is utterly unsustainable and the ZIRP program is doomed to die in this big, inflationary explosion or worse for the rulers, an uprising from below as enraged Japanese workers discover they are slated to be replaced by robots or eliminated entirely via offshoring.

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Now, to weaken the yen vis a vis the world’s biggest economic system, the European Union, Japan’s banks and central bank all bought tons of EU debts so 10 Japan institutions have 3 tril. yen exposure to debt-ridden Europe.  So, Japan is already reeling from the effects of a weakening euro and Japan is desperate to buy up European debts in order to strengthen the euro so they can export more goods to Europe!  Well…the problem here is, unlike buying US bonds, Europe has many competing bonds to buy and none of them insure Japan, holding this debt will affect the value of the euro enough to make it financially worthwhile for Japan!

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Here are some old cartoons from 2005, trying to explain how Japan operates.  Culture of Life Financial News: Nikkei Shoots Up As Yen Falls–Japanese Hate Diplomacy Pays Off.  The Japanese cheerfully joined the US in attacking China over currency valuations.  The Chinese were enraged by this but then they finally, by 2007, held enough international debts and trade dollars, it was much larger than Japan’s holdings.  Thereafter, China controlled world currency markets and still does.

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The internationalists know this.  They hate this.  They do not own the Chinese leadership so they can’t get them to do things they want rather than things that are good for China.  The Chinese leaders, on the other hand, are most anxious to make China stronger internally as well as externally.

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Note my cartoon here: when the yen goes down in value, export trade rises and the Nikkei shoots upwards.  The Japanese are highly aware of this even if the US leaders lie to us about this dynamic.  Here is an article from the same month of October, 2005, detailing how the various holding systems in Japan act on the value of their currency and helps them flood other countries with exports: Culture of Life Financial News: Japanese Purchase of American Bonds Drives Value of Yen Even Lower

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The cartoon here from back then shows another matter that has finally shown up just this last year, namely, China has set up a system whereby they control the value of the yen, not Japan!  Once the Chinese figured out how to open Japan’s markets, they began to win all trade wars there.

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That is, they lured Japan into moving factories into China.  Originally, these factories produced stuff for sale within China or export to the US from China.  The US would then be mad at China for the exports while the Japanese industrialists would collect the money and laugh at us for being monkeys.

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Well, China had a plan too!  That was to lure in these factories and then begin exporting Japanese corporate goods to Japan.  Well, the ability to reduce wages in Japan floundered recently due to workers no longer making families at all so Japan had to find a huge labor market to bring profits back up again. So, they moved production more and more to China and then reimported these goods into Japan, itself.  In 2005, this was barely happening.  But once China controlled the value of the yen in international trade, the Japanese were forced to do this to keep things at ZIRP rates at home, that is, to prevent inflation from happening.

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They needed cheap Chinese goods to prevent a rise in interest rates.  Caught in the trap of their own devising, they now can’t escape.  All they can do is to move production from China to an even cheaper foreign locale.  They cannot bring jobs home again:  Sharp sets up 1st office to oversee China, Taiwan operations – The Mainichi Daily News

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“In the very long term, total business opportunities will decrease in Japan due to the declining birthrate and aging population,” Nobuyuki Sugano, chairman and president of the Beijing-based Sharp (China) Investment Co., said at a news conference in Tokyo.

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Sugano, who also serves as Sharp’s senior executive managing officer, said, “We have to significantly expand our business in China, where it’s likely to grow further,” adding, “I’ll have sales (in China) surpass sales in Japan at an early date.”

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The end is near for Japan.  In another 20 years, all the Japanese corporations operating mainly in Chinese-speaking countries will all be owned and run by the Chinese.  Unlike people in many poor countries who can’t run complicated or sophisticated systems, the Chinese invented many of these systems including and above all, fiat paper money systems.  They are highly intelligent, work very hard and are able to analyze systems, they are one of the great civilization centers on earth for the last 6,000 years or more!

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And unlike other old civilizations in the Middle East or India, they are not prey to religious fanaticism that cripples economic thinking.  China is already the richest nation on earth, bar none, with the greatest sovereign wealth holdings as well as very little national debt and a huge industrial base.  So it is exactly right that China is the main nation to call for joint effort to deal with global economic difficulties

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The global economy is challenged by new difficulties which require all countries to join hands in fighting all sorts of protectionism either in trade or in investment, according to a statement issued by the Chinese delegation led by Chinese Financial Minister Xie Xuren and Central Bank Governor Zhou Xiaochuan.

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HAHAHA…the Dragon doesn’t want ‘protectionism’ of course!  None of our allies want us to do this, either.  They are all united with one goal in view: get the US to continue running immense trade deficits with everyone until they are finished with sucking away all our jobs, all our industries or they have bought up all our economic systems, all our assets and all our property!  End of story!

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Why our own government is playing along with this dangerous plan is no surprise.  They are all traitors.  They see the writing on the walls!  But they ignore this because ignoring it means they will all get much richer.  Too stupid to figure out that wealth is useless when ravaging hordes are hunting for wealth to loot, they kick the entire population of America to the curb and hope to hide somewhere when things finally crash.

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Of course, if they strip us of all civil rights, menace us with ever-deadlier missiles such as the Hellfires being used in the war againt al Qaeda – which they already sold to Australia, Egypt, France, Greece, Iraq, Israel, Japan, Lebanon, South Korea, Kuwait, the Netherlands, Saudi Arabia, Spain, Singapore, Taiwan, Turkey, the United Arab Emirates and the United Kingdom, according to Jane’s.  Another version has gone to Greece, Israel, Japan, Kuwait and the Netherlands.  So, everyone and their brother will have these things so they can kill dissent at home as well as here in the US.  For anything used overseas ends up coming home.  This is a given in all systems.

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The grim system being used by our own elites is being hammered into being so it can be used here.  So, if you use modern technology for intercommunication to create actions that will trouble the government, all it has to do is claim, you put up a You Tube speech or twittered something and this gives the secret committee at the CIA the right to assassinate you at home while you post a story online.  And if it kills your family or neighbors, so what?  The elites don’t give a hoot.  They hate troublemakers.  They want them dead.  And as of today, it is totally OK to assassinate Americans who give speeches that the government dislikes.

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Chinese Premier Wen vows to stabilize foreign trade, reassures exporters

 

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Premier Wen Jiabao has pledged more support measures for exporters including “a basically stable exchange rate” for Renminbi to stabilize foreign trade in the world’s second largest economy amidst new external uncertainties…According to reports by the foreign trade sector, rising labor and material costs and the appreciation of Renminbi, or yuan, in recent years had greatly reduced the exporting companies’ profitability and created trouble for their business.

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Since the US let Japan deliberately weaken the yen via the central bank buying up tons of excess government debts, China was pissed off.  So, the gloves are now off.  The race to depress currencies will accelerate.  The US system of floating fiat currencies as a means of balancing trade failed around 40 years ago.  Today, everyone knows exactly how to artificially depress the value of their currencies so all are doing it simultaneously.  This can’t work.

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Europe saw the euro shoot up in value due to rigging their own game so they cannot play the Japanese/Chinese/South Korean currency games. Now, they are most anxious to play it and are desperate to make the European Central Bank more powerful than any of the central banks of Europe.  But this means confiscating Germany’s sovereign wealth and the Germans hate this.  Immensely.

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So, Merkel sets financial tax, enhanced regulation as G20 priorities out of sheer desperation.  She is going to be crucified in the next elections.  All the governments of Europe will probably fall in the next year as Europe writhes on the floating fiat currency currents as money flows in the wrong direction and as the US, Chinese and Japanese currencies race to make themselves weaker vis a vis the euro.

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There is growing regret in Europe as people slowly figure out why confederations are terrible social systems, do note that many libertarians love the Swiss system and it is now collapsing due to the Swiss money shooting up in value.  The Swiss have a strong central bank but foolishly handed it over to the Bilderberg gang and not it is being destroyed and the gold sold off to private bankers who used ZIRP loans to buy it on credit.  Eurozone debt crisis: Euro bailout attempt is utterly dishonest | Mail Online

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The scale of the euro crisis has made one thing abundantly plain: Europe, Britain and the rest of the world would be better off if the euro had never happened. It would be preferable if it were now dismantled in an orderly manner…Merkel and Sarkozy failed to announce details of their programme. But if reports are correct, one plan is for Europe to use some highly dubious financial wizardry to increase the amount it can borrow — injecting toxic assets directly into the bloodstream of the European financial system as it does so.

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The latest idea is to get the European Central Bank (ECB) to lend up to five times the €440 billion of the bailout fund, taking the total available to more than two trillion euros.

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Basically, there will be this central bank not controlled by any one country that will suck down three trillion dollars in bad government debts that can never, ever be repaid.  The countries that represent these debts will be locked in the exact same ZIRP system as the Japanese workers.  That is, wages must always fall, systems must be starved until all inflation is eliminated and thus, the central bank has no ‘haircut’ so it can happily lend to bankers, money at ZIRP rates.  Since these bankers are greedy bastards, they will use this free lending to play in commodity and stock markets and many bubbles will form and pop, over and over, with the rich getting richer and then the streets will flow with blood unless they terrorize everyone into not resisting this insane system.

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In the US, working people to death is seen as the solution.  You keep people going until they wear out and die rather than retire!  So, the way to do this is to deny retirement by raising the government age of retirement to higher and higher levels so…Pension age of 67… sooner than you thought Millions must work longer as retirement age rise is brought forward by up to a decade.  Europe was proud that they didn’t work people to death like the US.  Now, they get to imitate us.

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But then, the Chinese work themselves to death already.  And so we all are on the same track in a terrible way.  Will workers in Japan, the EU and US let this happen passively?  Our own youth are filled with increasing rage as they contemplate a future whereby the need to pay off school loans blights their ability to do anything including building a family and buying their own homes.  This is very destructive. We see it in Japan. It has to be fixed and fixed fast.  And ZIRP isn’t the fix.  Nor is more free trade.  This we know from the past.  This won’t work.  At all.

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8 Comments

Filed under .diplomacy, .money matters, Free Trade, gold

8 responses to “Currency Devaluation War Rages Ever More Violently

  1. adamm

    The German foreign and finance ministers are declaring that the US is the cause of all this and refuting Geithners urgings to “save” the eurobanking systems. We now see more mainstream ie Jeffry Sachs advocating that the protestors are right… I recall he recommended a BIG BANG deregulation etc in Russia as it converted, with disastrous results. Has he smelt the revolution in the air? More of the same, or is this the real deal?? Perhaps.

    Further, this art. about the subterfuge of the economics profession is well worth reading:

    Economics has met the enemy, and it is economics methods and even morals that have got to change

    http://www.theglobeandmail.com/news/politics/economics-has-met-the-enemy-and-it-is-economics/article2202027/

  2. csurge

    HAHAHA…the Dragon doesn’t want ‘protectionism’ of course! None of our allies want us to do this, either. They are all united with one goal in view: get the US to continue running immense trade deficits with everyone until they are finished with sucking away all our jobs, all our industries or they have bought up all our economic systems, all our assets and all our property! End of story!

    Yeah. And so when they finally drive the American Beast insane and it unleashes it’s massive arsenal of nukes, the Europeans, the Israelis, Chinese, and Japanese will reap what they have sowed.

    I thought these people were clever. What is clever about cornering a wounded bear and expecting it to play along with being put on a leash?

    If they don’t want WW3 then the Russians and Chinese will endeavor to put an end to this nonsense right now. No more ravaging the American people and buying off their government. No more playing along with the insane Zionists like it’s business as usual. No more of this free trade bullshit. Everyone must come clean or there will be hell to pay.
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  3. Elaine, you relate The latest idea is to get the European Central Bank (ECB) to lend up to five times the €440 billion of the bailout fund, taking the total available to more than two trillion euros. And you relate the news report Currency Devaluation War Rages Ever More Violently The G20 tells euro zone to fix debt crisis in eight days. HAHAHA.

    I reply, Liz Alderman of the NYT, in Europeans Struggle Toward Debt Solution quotes France’s finance minister, François Baroin, saying “The results of Oct. 23 will be decisive.” So there is likely to either be a debt fix or a debt collapse; I believe the latter. The death of the Milton Friedman Free To Choose floating currency regime can be seen in the Dollar, $USD, rising since September 1st.

    I relate that the Sovereign Lord God, in 1974, appointed the 300 hundred of the world’s elite to met as the Club of Rome. They presented regional economic government as the solution for the chaos that would come from deleveraging and disinvesting that comes with the failure of Mr Friedman’s Free to Choose dream. Their Clarion Call, has been heard by globalists such as Angela Merkel and Nicolas Sarkozy, who in their August 2011 Communique, called for a true European economic government.

    Sovereign armageddon, that is a credit collapse and global financial breakdown, will come out of Gotterdammerung, the clash of the gods, that is the European leaders and the investors together with the rating agencies. This will result in the loss of national debt sovereignty, and extinguishment of state fiscal spending capability.

    God looked down the hallways of time, and has been working his will, drawing out the European sovereign debt crisis. It requires a sovereign solution. One Leader, the Sovereign, Revelation 13:5-10, and his banker, the Seignior, Revelation 13:11-18, will arise to speak for and to the Eurozone, which will be transformed into a Federal Europe, as leaders meet in summits and wiave national sovereignty, and implement a Fiscal Union, empower the ECB as a bank, and develop a common European Treasury. Seigniorage, that is moneyness, will no longer be based upon debt, but rather will be based upon the diktat of structural reforms, austerity measures and debt servitude; people will be amazed by this, and place their faith in it, and give it their full allegiance in accordance with Revelatin 13:3-4.

    Bible prophecy of Revelation 2:27, communicates that God is destroying nations and national sovereignty, so as to reveal the sovereignty of his Son by providing a Super European Government, as part of a ten toed kingdom of regional economic government as foretold in bible prophecy of Daniel 2:42, where according to Revelation 17:12-14, ten kings will rule in each of the ten toes, that is the world’s ten regions.

    Under Neoliberalism, fiscal sovereignty came from sovereign nations issuing sovereign debt. But under Neoauthoritarianism, where nations have lost their sovereign debt authority, the Sovereign and the Seignior will have both sovereign authority and fiscal sovereignty. Credit will not come from the securitization of debt; but rather from the word, will and way of sovereigns and stakeholders appointed from industry and government. Lending will only go firms that are key to the region’s security and prosperity.

  4. Pingback: In China They Placed Their Faith In Ponzi Lending And Collateral Consisting Of Copper Stockpiles « EconomicReview Journal

  5. Clueless

    Elaine said: “I pointed out, with intense fury, that the Federal Reserve didn’t merely want to hide inflation facts from the masses, it also wanted to conceal future bail outs of the euro. These ‘repurchase agreements’ were what the EU bankers and the Fed used in 2008 when the Fed SECRETLY lent them all, many of whom were private bankers and investment firms, over $16 trillion.”
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    Who owns the Federal Reserve? The US government only owns 20% of the Fed, it bankrolled the creation of the Fed in return for 20% ownership. So who owns the Fed? This is what is always conveniently forgotten in all these articles, discussions, etc. (http://www.apfn.org/apfn/fed_reserve.htm)

    Americans have been cooked in their own lard since 1913. If you follow the money it leads to Europe, not not the other way around. For all intents and purposes the US is still a colony by proxy. Until and unless the American people abolish the Federal Reserve, they will never be free. They signed that away in 1913.

  6. emsnews

    Exactly which is why the Fed has repeatedly endangered us to bail out European bankers. I have mentioned this in the past, more than once.

  7. Hello everyone, it’s my first pay a quick visit at this web page, and article is actually fruitful in support of me, keep up posting these articles or reviews.

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