Wild Money Printing By Japan Re-inflates Housing Bubbles And REIT Investments

More firms selling prime real estate to get cash in Tokyo as the electronic giants of Japan and others go bankrupt due to competition from South Korea and China destroy the once-mighty Japanese power houses like Sony and Sharp.  The Bank of Japan printing press has gone into high gear to flood the market with yen and thus weaken it so Japan can export more to the US and Europe and this, in turn, is causing…more real estate bubbles.  Even as corporations collapse due to the rising South Korea/China boycott of Japanese goods, a desperate Japan Prime Minister Abe says Tokyo 2020 will be ‘inspiring’ due to this ruinous, huge government spending spree.

 

First, startling news in Europe which has been pretty much ignored in America about the IMF and World Bank about its genesis right after WWII:  The banker who shaped the modern world after WWII was a Soviet spy who wanted America to become communist | Mail Online

 

The banker who shaped the modern world after WWII was a Soviet spy who wanted America to become communist | Mail Online
While White’s espionage has been an open secret and acknowledged by Presidents from Truman to Nixon, historian Benn Steil discovered new notes from the economist’s Princeton archives dating from 1944 – when he was at the height of his powers in the administration of President Roosevelt.

The Bretton Woods conference comprised 730 delegates from all 44 Allied nations, including the Soviet Union, and even though White emerged as an American hero he had already begun feeding the Russians information for most of that year.

Among the consequences of the conference were the creation of the International Monetary Fund and the World Bank, two institutions which have been integral to the spread of liberal capitalism around the globe…

Alarm bells rang in the White House and when Secretary of State James F. Byrnes read the report he wanted Truman to immediately withdraw the nomination and have White arrested as did Treasury Secretary Fred M. Vinson.

Regardless, Truman still had a healthy distrust of Hoover and instead of allowing White to ascend to IMF managing director kept him as executive director.

Knowing that appointing another American above White would alert him and his Soviet handlers, Truman searched for a solution he could feasibly pass off.

This came when Vinson met with the venerable Keynes, who was the British governor of both the IMF and the World Bank.He said that Truman was not going to insist on an American head of the IMF but instead wanted an American head of the World Bank.

Alarm bells rang in the White House and when Secretary of State James F. Byrnes read the report he wanted Truman to immediately withdraw the nomination and have White arrested as did Treasury Secretary Fred M. Vinson.

Regardless, Truman still had a healthy distrust of Hoover and instead of allowing White to ascend to IMF managing director kept him as executive director.

Knowing that appointing another American above White would alert him and his Soviet handlers, Truman searched for a solution he could feasibly pass off.

This came when Vinson met with the venerable Keynes, who was the British governor of both the IMF and the World Bank.

He said that Truman was not going to insist on an American head of the IMF but instead wanted an American head of the World Bank.

 

And this is why the tradition continues with Europe running the IMF and the US running the World Bank.  And these lending operations fueled inflation and destabilized the gold standard of the US dollar along with wild US military spending especially for the ruinous Vietnam War.  Continuous military spending via debt feeds wars.  No one surrenders or stops if the money flow is infinite as we saw so clearly in WWI.

 

Wars also fuel inflation.  The US has been at war for a long time, the anti-Shi’ite/anti-lower class peasant Muslim wars has been raging now for two generations and is completely out of control now involving multiple countries at a time and this has fueled tremendous inflation in food and fuel in the US and Europe.  This, in turn, hammers the lower classes, the ‘peasants’ and ‘excess population’  of Europe and America.  The only thing keeping the lower classes heads above water is the illegal drug trade and social programs.

 

Money printing is very easy to do and quite contagious and nearly everyone approves of this because it seems to solve problems if one doesn’t look at all the very serious downsides:  The Sequester Is President Obama’s Fault | The Smirking Chimp

by Dean Baker

 

The basic story is incredibly simple. Demand from the private sector collapsed when the housing bubble burst. We lost $600 billion in annual demand due to residential construction falling through the floor. We will not return to normal levels of construction until the vacancy rates return to normal levels. Vacancy rates are still near post-bubble record highs.

 

We also lost close to $500 billion in annual consumption spending due to the loss of the $8 trillion in housing-bubble-generated equity that was driving this consumption. This demand will also not come back.

 

This creates a gap in annual demand of more than $1 trillion. The stimulus, which boosted demand by roughly $300 billion a year in 2009 and 2010, helped to fill part of this gap, but was nowhere near big enough. Furthermore, stimulus spending fell off quickly in 2011 and the stimulus is now pretty much gone altogether. This means that we are still faced with a huge hole in private sector spending.

 

The terror of all bubbles is quite obvious: spending rates and lending rates are unsustainable and collapse and this, in turn, causes economic pain, unemployment and a collapse in the value of once-high trading commodities and properties.  This is why all governing processes must control bubbles and above all, prevent any bubbles in markets.  And the #1 machine for printing money is often the government in the first place.  So the responsibility is double.  Instead, we have governments desperate to create bubbles because bubbles are very popular.

 

With the advent of the floating fiat currency we have two things at work creating vast seas of red ink which cause bubbles: governments love running in the red and everyone who exports manufactured goods want to flood foreign markets due to the insane ‘free trade’ model we got stuck with since Nixon cut the gold standard.  Japan stands nearly alone in this by constantly weakening the yen as much as possible while using their culture to refuse to buy foreign goods and thus, have run up  until the Fukushima disaster, a trade surplus.

 

Today, they run a deficit alongside a huge government debt that is higher than any other first world nation when compared to GDP.  In turn, this poverty is spreading in Japan as jobs disappear, the people at the bottom half fall into third world living conditions and Japan tries to claw its way back into a trade surplus…while shipping its jobs overseas to cheaper labor venues relative to the value of the yen such as Vietnam and previously, China.  But the Chinese market closing to Japanese goods is going to destroy Japan because China, not the US, is the future growing market that is huge.

 

The US continues to pretend we can run a huge military empire that goes into endless wars but thanks to the sequester, it can’t pretend to infinite military spending anymore to the rage of AIPAC:  U.S. warns Iran: Don’t take advantage of reduced naval presence | The Raw Story

 

“I still have one carrier out there, and I would just caution any enemy that might look as an opportunity to take advantage of this situation that that would be very ill-advised if the president orders us into action,” said General James Mattis, head of Central Command, in a clear reference to Iran.

 

“I have what it takes to make it the enemy’s longest day and their worst day. And we’ll get the other carrier out there quickly to reinforce,” Mattis told the Senate Armed Services Committee.

 

The Zionists and the very evil, repressive looters of Saudi Arabia and the Gulf States pushed hard to convince Americans that we have to go to war with Iran.  I predicted years ago that any boycott of Iran will cause world oil prices to shoot upwards…to the great benefit of oil corporations and Saudi Arabia…and that the boycotts would wreck our own economy due to high oil prices…which it has.  And that the world banking business will take a big, big hit, too. And further, I successfully predicted that this bank boycott would restart the use of gold as ‘money’ again and trigger an alternate banking system based on oil and gold.

 

And that this would hit the US very, very hard.  And it has and will continue to destroy our own economy even as the Zionist press in the US crows that Iran is hurting badly.  Well, la-de-dah!  Doesn’t stop things from collapsing here!  This stupid suicidal military/boycott activity is bankrupting America.  This is doing absolutely nothing good for the American people and this is forcing AIPAC to back off a tad from their endless pushing for more wars.  Further, our actions are making the Chinese, Russians and Iranian leaders to laugh their heads off at us as we try to pretend we can run multiple wars fed by debts.

 

The international offshore banking business struggles to start more bubbles and flee regulations:  Traders Flee Asia Hedge Funds as Job Haven Turns Dead End

 

“Five years on, many of these guys are tired of the huge swings in hedge-fund compensation, and some have not tasted the sweet promise of hedge-fund payouts,” said Will Tan, managing director at Singapore-based recruiting firm Principle Partners Pte. “Investors getting increasingly selective, regulatory environment getting tougher, inconsistent performance of hedge funds and the overall state of the finance industry have all contributed to long-time veterans leaving the hedge-fund space for more stable careers in finance.”

 

They have evaded regulations but Hong Kong is now run by the Chinese communists who are interested now in stopping the Chinese bubbles.  So they raised interest rates and cracked down on wild lending by bankers who have little capital.  Too bad for these damn hedge funds!

 

Meanwhile, the stock markets have gone upwards due mainly to loose money seeking a haven:  Dow Average Jumps to Record as Profits, Fed Stoke Rebound – Bloomberg and  European Stocks Rise, Extending 4 1/2-Year High.  All, while strangling the populations with tax hikes or cuts in government spending.

 

The global housing bubbles continue to pop up here and there and all over the place:  Norway Cracks Down on Mortgage Debt to Fight Bubble Risk.

 

While Chinese homeowners desperately battle to shift property before capital gains tax hits | Mail Online

 

Hundreds of Chinese homeowners scramble to register the sales of their homes before new capital gains tax rules are introduced in a bid to stop the housing boom spiralling out of control.

 

The scenes of panic at the Nanjing Municipal Real Estate Trading Centre were repeated across the country with the government giving virtually no warning before a mandatory 20 per cent tax is introduced.

 

Previously sellers were given the choice of either paying between one and three per cent of the gross transaction value, or a flat 20 per cent capital gains, with most opting for the former…Property investments account for a huge 14 per cent of China’s total GDP with real estate and construction a major driving force in what is the world’s second largest economy so a property crash could have repercussions on the global economy.

 

The main problem with the floating fiat currency business is how easily it can balloon suddenly.  This requires very active measures to prevent sudden bubbles and reluctance to supervise this properly causes these bubbles to pop up nearly constantly.  The entire excuse for this currency system is simple to see: governments can borrow money like crazy under these systems!  So, it fuels wars and trade aggression.  This, in turn, destabilizes governments and the empires that began all of this, the US and UK and European imperialists along with Japan…have been wrecked by this system they created in order to make it easier to borrow money for governments!

 

The worst collapse of this system continues to be Japan:  Man arrested for having his kids work on his newspaper delivery route at 2am in the middle of the night.  He put his 9 and 11 year old children to work alone in apartment buildings delivering papers while he sat outside.  The business pays very little so he outsourced the work to small children which is what we saw during the Victorian era and other times when labor exploitation ran amok.  It is illegal to do this in Japan but then, one third of the adult workforce is, like this poverty stricken man, working for very little pay and no security.  And as the Japanese elites spend government money paving all of Japan with cement, the population gets poorer and weaker.

 

Japanese man dies after being turned away from 25 hospitals for hours and hours and this is not all that unusual in Japan, the collapse of the Japanese healthcare system has been hidden from foreign eyes due to the elites of Japan pretending the Japanese are very healthy and strong when in actuality, Japan is dying.  Proof is easy to find, the population has begun to collapse.  The government is spending much more on the military as the imperialists take over and chest thump against China, Russia and both Koreas.  But the country is feeble and dying which makes this all so bizarre.  Like Israel, Japan hopes to force the US into these confrontations and have AMERICANS die for their pretensions.  Not themselves.

 

And this is why I rage at all the money printing by governments: this leads to wars.  Endless, ruinous wars.  Hyper-spending is very dangerous and kills people.  Millions of people.

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16 Comments

Filed under .diplomacy, .money matters, war and peace

16 responses to “Wild Money Printing By Japan Re-inflates Housing Bubbles And REIT Investments

  1. John

    Keep raging at it, Elaine. While I might not agree with all of your ideas so far as solutions, your analysis of the situation is perhaps the most insightful I’ve ever seen. You identify moving parts of the global machine that almost nobody else even notices.

    As for myself, I rage against the printing press because of something else you’ve said repeatedly: anything which goes to infinity falls to zero soon after. I see a purposeful effort to collapse the dollar, as this will destroy the sovereignty of America. Then, the IMF & World Bank do to us what they’ve done to all those African nations. The UN is appointed by the banksters as the global government, the banksters’ global currency is foisted upon the whole world – and the UN’s “Agenda 21” forbids the ownership of private property. Presto! The feudal system od Old England and Europe is recreated. And this time, there is no “New World” to which anyone can flee from the new “landed nobility” banksters. This, I firmly believe to be their end game, and it’s nearly upon us.

  2. We are heading to a Post Carbon, SteamTech Feudal System

  3. John

    Captain Picard technology for the oligarchy – and Ben Franklin technology for the serfs…if we’re lucky…

  4. ziff house

    Few are saying it, but the Dow is another bubble, you can see it in the chart technicals, overbought and staying there. Just like the Naz. in 03? month after month ignoring negative signals. But my guess is that this time with Fed involvement there will be support for any drop.
    Although with the Naz. there was support also, a long rally when bearish patterns resolved with more bearish patterns , at a higher level!

  5. Christian W

    The stock market in Zimbabwe was doing “fine” even during the crazy run away inflation period.

    The oligarchs will frack the hell out of the planet before we return to any steam tech culture. There is a LOT of shelf gas and oil lying about, only problem fracking will ruin the life quality for the serfs/thralls but who cares about that right?.

  6. Inflation pushes everything “real” up. But the media tries to sell if the down is good it´s all right !

  7. lucky13

    SCI N WAR…not sure what you mean?

    The UN is appointed by the banksters as the global government, the banksters’ global currency is foisted upon the whole world – and the UN’s “Agenda 21″ forbids the ownership of private property..

    John, the Birch Society started warning folks in the 1950s about the bankers and the UN.
    They got drubbed, time and again. Not to many listened.

    I hear on AM [yes Rushes show] rand Paul is filibustering the nomination,
    saying drones should not fly.

  8. I mean inflation makes money useless but makes real and necessary things to go up. making the market paper go up where it represents real assets;

  9. John

    Lucky 13,

    The leftists were very good at screaming “racist bigot sexist!” at anyone who pointed out what the banksters and globalists were doing. They still are, for that matter; they’ve added “homophobe nazi!” to the litany since then.

    I heard about Rand’s filibuster – he’s actually up talking, like a filibuster is supposed to be done. He’s one of the very few statesmen we have left.

    Given that the Rothschilds bankrolled Marx, and the Morgan bank bailed out the Bolsheviks, anyone who is paying even a little attention should understand that collectivist doctrine is the means to divide the middle classes and subjugate all of humanity under the “new noble” bloodlines of the financeers.

  10. Christian W

    What are you on about John?

    The Rothschilds bankrolled Cecil Rhodes as well and CR’s vision was:

    “To and for the establishment, promotion and development of a Secret Society, the true aim and object whereof shall be for the extension of British rule throughout the world…. the occupation by British settlers of the entire Continent of Africa, the Holy Land, the Valley of the Euphrates, the Islands of Cyprus and Candia, the whole of South America, the Islands of the Pacific not heretofore possessed by Great Britain, the whole of the Malay Archipelago, the seaboard of China and Japan, the ultimate recovery of the United States of America as an integral part of the British Empire… “

    These big shots tend to be bat shit crazy.

  11. emsnews

    I was at the hospital today and came home to the real filibuster and just did an article about it.

    Rand is a good man to do a real filibuster. Good for him! But a SOCIALIST, the only one in our government, did this recently, too, and the GOP slammed him down and the Democrats didn’t support his filibuster.

  12. emsnews

    Also, as a true conservative on the left, I wish to let all of you know that we can have WOMEN’S RIGHTS, GAY RIGHTS and other civil rights like laws preventing discrimination, while having Constitutional rights.

    See? Isn’t that awfully simple?

  13. Jim R

    ZeroHedge has an article about this today, too.
    http://www.zerohedge.com/news/2013-03-07/china-threatens-currency-war-retaliation-warns-japan-against-using-china-garbage-bin

    “The president of China’s giant sovereign-wealth fund warned Japan against using its neighbors as a “garbage bin” by deliberately devaluing the yen, joining growing international griping about a potential currency war.”

  14. emsnews

    Bank of England is going to copy Japan. We have been in a currency war since Nixon’s day.

  15. John

    Christian W

    Fascism, statism and communism are all very closely related. It’s all about the top 0.01% living as gods above the “rabble” (that’s all of us, BTW). And the nationless financiers are the keystone of that elitist arch.

  16. Pingback: Anonymous

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