This week, the news about a Tokyo mega-quake which would kill over 9,600, simulation shows has the Japanese public a bit more agitated than usual. The government there is about to fall…again. But the news about the IMF getting money from Japan to shore up its finances comes as yet another ‘shocku’ to the Japanese public. Like the US public, the government claims it can’t do much of anything due to financial problems while internationally, acts the exact opposite.
The IMF needs more capital. Shoring up most of the EU has drained the coffers and so lending is constrained unless a whole boatload of capital is given over to the IMF people. So, Azumi: $60 bil to IMF was to help global economy, acknowledge quake aid ‹ Japan Today: Japan News and Discussion
Azumi told reporters: “Last year we were hit by a great earthquake and a large number of countries provided assistance. Now we are heading toward reconstruction and we are moving solidly so we have to help (other) people who are in need.”
The IMF says it raised $430 billion after discussions among the Group of 20 major economic powers.
The average American isn’t told how the high oil and food prices are both due to the Federal Reserve bailing out everyone by lending money to everyone at zero interest rates. Quantitive easing is mysterious to the average person because the term hides the truth that this is really rank ‘money printing’ which means…inflation.
The Japanese news covers the UK business in lending the IMF money which the government cannot afford.
Osborne criticised over “IMF bailout bull” – UK Politics – UK – The IndependentBut critics said he was putting the taxpayer on the hook for more bailouts of the struggling eurozone.
He was also accused of dodging a potentially embarrassing parliamentary vote on the extra contribution.
Finance ministers and central bank governors struck the deal, which should boost the IMF’s resources by $430bn, at a meeting in Washington.
Alongside the UK’s increase, Japan is to contribute an extra $60bn dollars, South Korea 15 billion dollars, Switzerland 10 billion dollars and Australia seven billion dollars.
However, the US and Canada have refused to add any more into the pot.
I predicted that this would prove to be a huge problem for the IMF. Bailing out multiple first world nations, bailing out NATO nations, bailing out the wealthier countries would lead to a moral collapse of the IMF mandate. That is, the IMF was for developing nations to ‘help’ them. Not first world nations that go off the cliff due to creating huge credit bubbles.
The more shocking part of this is, the countries giving capital to the IMF are all ‘bubble’ nations that are in the process of collapsing, themselves. Japan being the #1 case of a country far into debt, now running huge trade deficits each month due to Fukushima, bailing out Europe! This is insane, of course. Japan is in no shape to bail out anyone.
I suspect they are doing this to wreck the yen. The strong yen has caused their trade deficit to worsen and they are determined to make it 100 yen or worse against the US dollar so they can export more to the US.
The US is suicidal, running a massive oil embargo at the same time the US public is freaking out over $4+ per gallon gasoline. Japan, anxious to export to the US, has gone along with Zionist demands to cut oil imports exactly when Japan needs these imports badly due to all the nuclear reactors shutting down so Japan decided to insure Iran oil shipments to counter EU sanctions – Tehran Times
The Japanese Transport Ministry held discussions with the Japan Shipowners’ Association about providing insurance, Akimitsu Ashida, chairman of the group representing the country’s shipping companies, said at a conference in Tokyo. India is considering sovereign guarantees, and Chinese government officials also met to discuss ways to prevent sanctions from disrupting Iranian oil shipments.
All except 5 percent of the world’s tankers won’t be able to carry Iranian oil without losing cover against risks, including collisions and oil spills, because their insurers are affected by a European Union embargo that takes effect July 1.
“This shows that Asian countries can’t afford to stop importing from Iran,” said Mark Church, a trade lawyer at Reed Smith LLP in London. “It puts them on a collision course with the countries that are imposing sanctions.”
Japan’s ship owners will ask the government to help provide insurance if the EU doesn’t “appreciate” the Asian country’s efforts to reduce imports from Iran, said Ashida, who’s also chairman of Mitsui O.S.K. Lines (9104) Ltd., the world’s largest owner of supertankers. India’s shipping industry asked for government guarantees to replace cover from European companies, K. Mohandas, then shipping secretary, said on Feb. 28.
In China, Iran’s largest customer, the Transport Ministry and National Development Reform Commission held special meetings on the issue, and the government will make sure shipments will not drop, Yan Zhichong, the general manager of tanker operator China Shipping Development Co. (1138), said on March 16.
All the embargo is doing is destroying the US power over Asian trade partners. I predicted this would happen. The Europeans would love to opt out like all of Asia, too. But are still too scared to go against the Knesset/Congress in this matter. But time is running out…for Europe, not Iran. Iran is laughing at this inept embargo and are certain the US and Saudi Arabia will be forced to back down after taking on a lot of economic injury.
Despite all this, Japan continues to stir the pot for wars Japan cannot fight but expects the US to fight for them: Yoroku: Tokyo Gov. Ishihara’s plan to buy Senkaku Islands causes ripples－ 毎日ｊｐ(毎日新聞).
On to China’s news about the Big Boss being bagged after his wife supposedly poisoned a British friend who evidently refused to ship out illicit money to the UK: Bo’s downfall result of inflated sense of influence: Global Times – Xinhua | English.news.cn
Some in the West imagined a struggle between different political factions in China after Bo’s case, and some Chinese believed it. But they overestimate Bo’s personal influence.
Reform and opening-up has long been established as a basic national policy of China and the Party is working resolutely for the construction of a socialist country with Chinese characteristics. Bo does not have the ability to change China’s political landscape. His influence in Chongqing is regional and cannot expand to the whole country.
There is only one way for high-level officials to realize personal ambitions and influence the development of the country positively, namely to promote the implementation of the Party’s lines. Some hold that Chongqing’s revolutionary song campaign and crackdown on organized crime was part of political in-fighting. They confused local practices with national policies.
The central government has the absolute authority to judge local practices, while local governments are unable to upgrade their local actions to the national stage. There is no political in-fighting.
HAHAHA…there is endless secret infighting in China! I even participated once in one such battle many years ago. The elite rulers are very keen on telling everyone the only place for battles is inside the Beijing Palace! The government there is still quite fragile compared to the US where the people who pull all the strings are totally in control. Even the Ron Paul mini-uprising has been pretty much suppressed and the debates about the future of our government is merely how much the elites will give us after they service themselves and Israel.
We have NO inside battles going on. We do have party politics seeking some tiny item to cling to such as birth control issues or ‘racism’ (sic) or some such. Things that change nothing in the State Department or the Pentagon. Is China worse than the US? Obviously, I see little difference except the leaders of China are more honest about their dictatorship style.
Some people claim that India is doing better than China in some ways so as a reminder, there is this news: Indian rail bosses order train drivers to clear bodies off tracks. Seems that not only do the trains run over people all the time, on a daily basis, people dump bodies on the tracks so they can blame the trains and get money. In Japan today, the police found yet another body of an elderly person mummified in a tiny hole of a home so the adult child could collect pension money.
Desperation abounds all over including the US. We have a lot more open violence here with multiple cases of murder/suicide every week these days. The hysteria about the Hispanic man shooting a black kid who was out of school due to misbehavior still is in the news with the shooter apologizing to the parents of the kid he killed and they refusing this wanting only blood. I see sympathy for them draining out pretty fast after this.
But exploiting anger over a rare event has superseded doing something about the brutal firestorm eating away at the lower classes here as they butcher each other and their own families on a daily basis, far more than all the other first world countries combined.
Back to Japan, there is now a steady brain drain going on there as the more active and adventurous are leaving: Made in Japan engineers find second life in China
Many of the Japanese engineers finding a second life in China do not have the cutting-edge technology that would deal another crushing blow to Japan Inc yet, analysts say, but the long-term impact could be severe because they will give Chinese manufacturers the skills to make high-quality goods efficiently.
“When I first came to China, a product was considered good as long as it didn’t fall apart,” said Aida, one of seven Japanese engineers in Dongguan interviewed by Reuters. “They’ve caught up rapidly since then.”
That shows in recent trade numbers. China’s exports of higher valued machinery and electronic products rose 9.1 percent in the first quarter from a year ago, when they gained 7.6 percent, to $253 billion, according to trade data.
Stemming the outflow of engineers to Chinese manufacturers appears to be impossible.
Engineers used to come to the US. Now, they are increasingly going to China. Japan is debating falling below India and Germany in wealth rankings in the next 5 years. The real danger is, the US is falling, too. Big time. Only our fiat currency buoys up our sinking economic ship. Which is being ignored in the looming Presidential election as both candidates pretend to be interested in the problems while not intending to do a thing about any of it, ever.
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