BOJ’s Kuroda says pain from bond yield rise is manageable which is pure wishful thinking. Japan can’t let interest rates rise above ZIRP levels for a reason: the huge, huge overhanging levels of debt! The US fell into the Japanese trap, too. As has England and some European countries. Interest rates can and do suddenly shoot upwards when debt loads are too great. This is why taxing the rich is so important, only they can pay down huge debts. And globally, the very rich refuse to do exactly that.
So bond yields are going up while bond values decline which is the yin/yang debt monster at work, a creature the bankers evaded for years via the Derivatives Beast which swelled in size alongside the debt/lending balloons. The first of which was in Japan, not the US or EU.
When I was traveling to NYC to visit the grandson, I saw a Forbes magazine with a high flying Abe cartoon and the headline was all about how Abe saved Japanese elites with his huge currency manipulation and we shoul all dump money into the Nikkei to get rich…so naturally, the headlines the last few days are all about how the Nikkei tumbles 3.2pc on Japanese recovery jitters. It crashed and burned.
Here are some other delusional headlines from Friday: Japan Most Favored Nation in Poll Showing Abe Optimism – Bloomberg. But European Shares Rebound as Yen Strengthens; Oil Declines. And what is really causing the stocks in Japan to crash after false optimism?
The gigantic trade deficit! Japan’s trade deficit expands nearly 70% in April due to the weakening yen! This is a familiar trap, the US is in the same trap.
Japan’s surplus with the United States soared 32.5% to 563.0 billion yen while Japan suffered a trade deficit of 38.6 billion yen with the European Union as exports there kept falling.
With China, Japan’s deficit expanded by 60.2% to 442.5 billion yen as exports rose only 0.3% on a slowing of growth in China’s economy and as political tensions between the two countries continue to weigh on sales of Japanese goods there.
As I correctly predicted, the entire purpose of the sudden currency manipulation was aimed at making exports to the US cheaper and thus, to dominate our market while Japan bought very little from the US. We were victimized by Japan and this was done quite cynically with the US regarding Japan as our forward base to attack China militarily and to do this, we need a fascist militarist imperialist Japanese government which is exactly what Abe, son of a WWII war criminal, is doing.
Japan’s relations with near neighbors is collapsing. The EU isn’t buying Japanese, either due to the declining condition of that confederation. And they are quite angry about the currency manipulation and correctly worried this will lead to South Korea and China doing the same.
The diplomatic disasters continue with Japan as the mayor of Osaka, Hashimoto to apologize to U.S. at Monday’s news conference which he did in a rather odious and insincere way. But then there is the issue of the near neighbors of Japan being angry about WWII crimes: Hashimoto regrets meeting cancelation; wants to apologize to U.S.after South Korean women who were sex slaves during WWII cancel their meeting with him. Hashimoto apologizes for comment on U.S. troops, but not ‘comfort women’ remarks which shows how much a toady he is. The need to keep the massive trade surplus with the US, the only bright thing in the Japanese firmament, is top priority.
Japanese right-wingers protest against S Korean daily’s A-bomb editorial after the South Koreans said the nuclear bombs were ‘divine punishment’ for Japanese war crimes. In the US, almost all of this is being ignored as the propaganda that Japan is our friend and doesn’t hate us has to continue for international domination reasons. But we should all be alarmed at The deeper agenda behind Abenomics – constitutional change ‹ Japan Today: Japan News and Discussion
Abe’s unlikely comeback was engineered by a corps of politicians who called themselves the “True Conservatives,” many of whom share his commitment to loosening constitutional constraints on the military and restoring traditional values such as group harmony and pride in Japanese culture and history…
“He wants to achieve what he left undone – to break free of the ‘post-war regime,’” said Koichi Hagiuda, a lawmaker and special aide to Abe. “What is most symbolic of that is the constitution that was drafted in one short week under (U.S. General Douglas) MacArthur’s Occupation.”
The Japanese must learn English in school nearly to the exclusion of all other languages which is a huge handicap since they need to know German and Chinese, for example, for world trade purposes. One thing everyone notices is, despite many years of English languages and hiring lots of foreigners to teach English at specialty schools, few Japanese can speak English and can barely read it.
This is inherent to their cultural system. They really do not want to learn English but like English and German words but make them more Japanese by adding an ‘oo’ at the end of many words and mangling the pronunciation so it is less English.
The US is insulted every year by the Japanese leaders as Abe defends right to visit Yasukuni Shrine making all sorts of bizarre and obvious excuses while sneering at us. Then there is Fukushima. Subcontractor chided for sacking Fukushima decontamination work whistle-blowers－ 毎日ｊｐ(毎日新聞)
Fukushima Municipal Government regulations governing the decontamination contract state that vegetation for incineration should be separated from soil to help reduce waste.
The labor standards office says the three workers were employed on May 20 and were ordered by the subcontractor to put both soil and vegetation together in bags on May 21 and 22. The three workers were fired one day after notifying the joint venture about the work procedure.
From 2011: Tokyo Starts Burning Radioactive Waste from Other Areas … Tokyo …AP: Over 30 million tons of nuclear waste in Fukushima alone …Japan is Poisoning Other Countries By Burning Highly-Radioactive …: the burning of radioactive materials to disburse it is poisonous, evil and hideous. And has been going on for several years now with the wind carrying this garbage to near neighbors in China and the Koreas.
The disregard for everyone characterized by the disconnected Japanese government which is, like in the US, run mainly for international corporations and rich people, is leading Japan into a collision course with much stronger, irate neighbors. With the US being the main military enforcer for Japan! At our cost, both in human terms and financially. All so we can preserve a trade relationship that is destroying our home base relentlessly.
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