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The something for nothing world of Jewish finance.
Japan is still a baseball playing colony of the USA.
The Japanese are obedient disciplined people.
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Japan's
Sham Currency War:
The
Hidden Objective Behind Japan's Massive Kamikaze Quantitative
Easing
By
Matthias Chang at"Information
Clearing House"
-
US$ dollars have been
flooding the financial markets ever since Bernanke launched
quantitative easing allegedly to turnaround the US economy.
These huge amounts of US$ toilet paper are mainly in financial
markets (and in central banks) outside of the United States. A
huge chunk is represented as reserves in central banks led by
China and Japan.
If truth
be told, the real value of the US$ would not be more than a dime
and I am being really generous here, as even toilet paper has a
value.
That the
US dollar is still accepted in the financial markets
(specifically by central banks) has nothing to do with it being
a reserve currency, but rather that the US$ is backed/supported
by the armed might and nuclear blackmail of the US
Military-Industrial Complex. The nuclear blackmail of Iran is
the best example following Iran’s decision to trade her crude in
other currencies and gold instead of the US$ toilet paper.
If today,
the United States is no longer a military threat and the global
bully that can blackmail with impunity the oil exporting
countries in the Middle East, the global financial system which
hinges on the US$ toilet paper would have collapsed a long time
ago.
The issue
is why has the US$ not collapsed as it should have by now?
When we
apply common sense and logic to the state of affairs, the answer
is so simple and it is staring at you.
But, you
have not been able to see the obvious because the global mass
media, specifically the global financial mass media controlled
mainly from London and New York, has created a smokescreen to
hide the truth from you.
Let’s
analyse the situation in a step by step manner, and apply common
sense.
1. The US
is the world’s biggest debtor. The biggest creditors are China
and Japan, followed by the oil exporting countries in the Middle
East. With each passing day, the value of the US$ toilet paper
is worth less and less. Like I said earlier, even toilet paper
has some intrinsic value. It reaches zero value when everyone
has to carry a wheelbarrow of US$ to purchase anything.
2. For the
US$ toilet paper creditors, they cannot admit the fact that they
have been conned by the global Too Big To Fail Banks (TBTFs)
acting in concert with the FED and the Bank of England to accept
US$ toilet papers. The central bankers of these countries have a
reputation to preserve (not that there is in fact any
reputation, for their so-called financial credibility is also
part of the scam) and the political leaders that relied on them
is in a bigger bind. How can the political leaders be so very
stupid to trust these central bankers (who have stashed away in
foreign tax havens huge US$ toilet papers as a reward for their
complicity). This is the current state of affairs in plain
English. They are having sleepless nights worrying if and when
the citizens would wise up to this biggest con in history i.e.
the promotion and acceptance of fiat currencies, the US$ being
the ultimate fiat currency.
3. The
global financial elites led by the FED know that this state of
affairs is to their advantage and they are exploiting it to the
hilt! They also know that no country or organisation has the
military resources to threaten the US to stop this global ponzi
scheme which has been going on since 1945 and intensified since
1971 when President Nixon de-coupled the US$ from gold. The
pound sterling is another story but, it is not relevant for the
purposes of this analysis.
4.
Additionally, and as a result of the above-stated scam,
countries were led to believe and to accept the false economic
theory that export generated growth (GDP) should be the
foundation of economic development, as the United States having
limitless US$ toilet paper has the ability and the means to
purchase the global exports, it being the largest consumer
market in the world. In the result, the world’s factories and
their workers, including those in the developed world such as
France and Germany worked their butts off to be rewarded with
US$ toilet paper whose value is less than the paper and ink that
produce it! The financial frolic went on for more than forty
years and came to an abrupt and foreseeable end in the 2008
global financial tsunami.
5. When
the party ended, the United States was up to her eyeballs in
debts as a result of reckless financial speculation in the
global derivatives casino and the consumption binge financed by
housing mortgages. Debts must be repaid. But, the US has no
means to do so. They cannot produce enough goods to earn the
revenue to pay the debts because US manufacturing has been
outsourced to the developing world – China became the world’s
number 1 factory. So, the financial elite appointed helicopter
Bernanke to lead the charge for the US and the UK to use the
printing press (digital or otherwise) to print more US$ toilet
papers to pay off the debt. In economic jargon, this is
“monetising the debt”. It is outright fraud, but no one (i.e.
central bankers) in his right mind would admit to this fraud as
they would be hung from the lamp-posts if the truth is
discovered as was the case when the Italian fascist leader
Mussolini was hung by the Italian partisans.
6.
Initially, central bankers confronted with this situation and
having to face a restless populace embarked on a regime of
competitive easing/ devaluation of their currencies. But, the
price was horrendous. Inflation spiked in all these countries.
But, this scheme of things did not work out as planned for the
simple reason, the US$ toilet paper continued to be lower as a
result of more QE by Bernanke. China realised the danger and
adopted other means to overcome this situation, one of which was
to enter into bilateral arrangements with her trading partners
to finance trade in their respective currencies. Such agreements
were entered between China and Japan, members of BRIC, Malaysia
etc. This counter-measure was perceived as a threat to the
continued dominance of the US$ toilet paper regime. In the
result, Obama declared at the urging of the financial elites (he
does not have the grey cells to think) a foreign policy shift –
the Asia Pivot to prevent a further deterioration of US$
dominance.
7. When
Japan entered the agreement with China, her behaviour was deemed
unacceptable since Japan was under the nuclear protection of the
US. Japan was caught between a rock and a hard place. It was
expected that sooner or later the US would apply the squeeze on
Japan to behave in a proper manner. Applying geopolitical
strategies, the US towing South Korea along provoked North Korea
by launching a military exercise which included flying B-2
bombers which are capable of carrying nuclear weapons. North
Korea responded in the manner that was expected. Japan was
exposed and in like manner reacted by seeking US protection. To
muddy the waters and complicate the situation, the US engineered
a Idispute between China and Japan over the sovereignty of the
Diaoyu Islands. This was followed by the installation of a new
regime in Japan by the election of the Prime Minister Shinzo Abe
and the appointment of Haruhiko Kuroda as the Governor of the
Bank of Japan (BOJ).
8. Now
comes the mechanics of US counter-measures in shoring up the
artificial dominance/value of the US$ toilet paper. Japan was
ordered to do its part as a quid pro quo for being protected by
the US’s nuclear umbrella. A new version of the Plaza Accord
must be put in place – a “reverse Plaza Accord”.
9. Let me
explain. In the 1985 Plaza Accord, the dollar was devalued to
reduce the current account deficit and to help the US recover
from the recession of the early 1980s. It was a managed
devaluation and the exchange value of the Dollar versus the Yen
declined by 51 per cent from 1985 to 1987 – reaching ¥151 per
US$1 in March 1987. The dollar continued to slide till 1988. The
effect of the strengthened Yen depressed Japan’s exports and
brought about the expansionary monetary policies that resulted
in the infamous asset bubbles of the late 1980s. The G-6
countries then gathered in 1987 in Paris to arrest the slide of
the dollar and to manage and stabilise the international
currency markets. The end result was the Louvre Accord. In the
next 18 months the dollar strengthened to ¥160 per US$1.
10.
However, in the current situation, the devaluation of the US$
toilet paper was the result of massive QEs so as to enable US to
monetise her debts. However, for US to continue to monetise her
debts and have the world’s central banks agreement to continue
to hold dollar reserves, the value of the dollar must
appreciate, failing which the dollar would collapse, the US
defaulting on her debts, as creditors would no longer accept US$
as payment. The trick was to artificially inflate the value of
the dollar without arousing any suspicions.
11. In the
1970s, following the de-coupling of the dollar from gold by
President Nixon, the dollar would have collapsed in like manner
as it was not backed by gold. It became pure fiat money! The
trick then was to create an artificial demand for dollar which
would in turn raise the value of the currency. This was effected
by the proposal of Kissinger to the Arabs that if they would
dollarize their oil exports, the US would guarantee their safety
and survival even from the threats of Israel. When the Arabs
agreed to this arrangement, every country in the world had to
buy oil in US$. Countries have to exchange their currencies into
US$ to buy oil. This demand for US$ strengthened the currency
and prolonged the US fiat money monopoly.
12.
However, this option is no longer available presently as oil is
now being sold in other currencies besides the US$. The
petro-dollar is no longer in dominance. In any event, the
continued use of petro-dollars would spike the oil price and
this would be inflationary and detrimental to the US economy as
well as the world’s economy in the present economic climate –
i.e. deep recession. Another means must be used.
13. This
is the reason for the sudden “shock and awe” monetary policy of
the new Japanese regime of Shinzo Abe and Haruhiko Kuroda. My
detractors will accuse me of indulging in conspiracy theories.
But, the facts speak for themselves. I had said earlier, that
the G-7 countries have collectively attempted to devalue their
currencies but, it did not stem the slide of the US$ because
Bernanke was increasing the intensity of QE since 2008. And the
EU was not willing and or able to adopt a suicide policy of
massive QE as Germany was well aware of such a risk having
suffered the negative effects of hyperinflation. China would not
kow-tow to the US and in fact together with fellow members of
BRIC was adopting counter-measures to confront Bernanke’s QE
financial weapon. That left only one country who can be
compelled to do the US bidding, to commit Hara-kiri to save and
or prolong the US$ toilet paper regime – Japan!
14. And
so, Japan launched its sudden massive QE and the desired effect
is that now the US$ toilet paper has artificially appreciated in
value vis-a-vis the Yen and less so with other currencies. This
cannot be disputed by my detractors because:
On May 11,
the financial elites of G-7 countries explicitly agreed with
this kamikaze policy of Japan.
Koichi
Hamada has also declared earlier that the target for this policy
is to allow the dollar to rise to ¥110 per US$1 and this rise
would be managed in a staggered fashion in small increments
(step by step approach) thereby controlling the rate of
inflation in Japan which would not be allowed to exceed the
agreed target rate.
It is
suggested that Japan can do this because it can utilise its huge
dollar reserves of US$1.2 Trillion to manage the devaluation!
According to Alan Ruskin, the global head of Group of 10
foreign-exchange strategy in New York at Deutsche Bank ASG, he
said “I think we are opening up the door to look at 105 in the
next few months and 110 by the end of the year …” and this
surely must be interpreted to mean that Koichi Hamada’s strategy
is definitely in play.
In
conclusion, it is my view that such “managed artificial
appreciation” of the US$ toilet paper while effective in the
short run would fail in the long run because the fundamental
issues of the US economy have not been addressed and resolved.
Only real economic growth can reverse the dollar’s demise.
Seriously,
would Bernanke stop further QE when the yen exchange rate
reaches ¥110 by the year end? Has not Bernanke declared that QE
would continue till 2015? And since Japan has drawn the Red Line
at ¥110, can Japan risk further damage to its economy and
continue to back-stop US beyond ¥110?
The US$
quadrillion derivative casino is the millstone around the US and
the global economy, and as long as this is not resolved, the
crisis would only get worse. Like water, after sufficient heat,
the boiling point would be reached.
While I
cannot forecast the precise date of the implosion, I am of the
view that the end is near, sparked by a black swan event and
then snowballed to its final devastation.
