Read
the Wednesday Afternoon Wrap-Up for 2/6/2013 and the Thursday Morning
Commentary for 2/7/2013
For years,
I have SCREAMED of the parallels between the doomed Japanese economy and
ours. As technologically advanced as Japan is, other Eastern Hemisphere
nations – like China – can now produce the same things for lower prices; and
thus, Japan’s manufacturing market share (like America’s) has been declining…
Japan autos losing market share in
China: report
…a situation certainly
not being helped by swelling anti-Japanese sentiment in China; amidst an
ongoing territorial dispute…
Japanese auto sales in China fall
sharply in September – IHS Automotive analysis
Throw in the permanent
impact of 2011’s CATASTROPHIC earthquake and tsunami…
Why the Fukushima disaster is
worse than Chernobyl
…and the world’s oldest population…
“DEMOGRAPHIC HELL”
…and it’s easy to see why Japanese stocks have not recovered from
their 1989 crash…
Since then, 17
Prime Ministers and 23 Finance
Ministers have tried to revive Japanese “inflation” with the most insane MONEY PRINTING
scheme of all time; that is, until the Fed, ECB, BOE, and SNB started mimicking them in
2008. In fact, Japan’s benchmark interest rate has been at essentially
ZERO since 1995; an astounding
18 years…
Like the Fed, the Bank of Japan LIES about inflation; and equally
importantly, doesn’t understand MONEY PRINTING always impacts the cost of life’s necessities,
but NOT necessarily things we “WANT VERSUS NEED”…
Tokyo is world’s most expensive city
Better yet…
Since 1992, Tokyo has been the top ranking city in every year except
six. Only Zurich, Paris and Oslo were dubbed the world’s most expensive
city during this time.
Despite this REAL WORLD evidence of inflation, the government
continues to plead “deflation”; announcing their equivalents of “QE9” and
“QE10” in October and December 2012, respectively…
When ¥11 Trillion Is Not Enough:
Japan’s QE 9 Disappoints, Half-life Zero
…failing to budge
the Yen lower; in its quest to “win” the “FINAL CURRENCY WAR”…
BOJ’s QE10 Is Latest Japanese Dud
Thus, the MORONIC Japanese citizens re-elected
Shinzo Abe as Prime Minister (he previous held this position in
2006-07) under a PLATFORM of increased MONEY PRINTING – which is EXACTLY what
he “influenced” the Bank of Japan to do in January.
In other words, Japan adopted Draghi’s “whatever it takes” strategy of
limitless MONEY
PRINTING. However, unlike the ECB – whose goal is to prevent the Euro from
collapsing (ironic, given their “tool” is MONEY PRINTING); the Bank of
Japan’s stated goal is to devalue
the Yen…
Japan agrees to inflation target and asset
purchases – The Bank of Japan (BOJ) has agreed to double its inflation target
to 2% and ease monetary policy, meeting key demands of Japan’s new
government.
…which has decidedly
been accomplished; plunging a
staggering 18% in just three
months, with no end in sight…
Japanese citizens
have immediately felt the impact of this policy, as energy prices have soared…
You Wanted Inflation, You Got It:
Japanese Gasoline Price Rises To Eight Month High
…but the idiotic government
chooses to instead look to the Nikkei stock average as its “barometer” of
success, which has risen 28%….
…although in REAL terms, nearly
all of this gain has been erased by INFLATION…
Guess How Much Japan’s Stock
Market Rose In January?
…just as it was in Weimar Germany; where stocks rose by a factor of a million…
…while the cost of living rose by a trillion…
In the END GAME, the Yen WILL be destroyed by HYPERINFLATION – and the
Nikkei as well…
Source:
Zero Hedge
…perhaps, a LOT sooner than anticipated; just as all other fiat currencies
in the past…
Research Shows ALL Fiat Paper Money Systems
Eventually Fail
And don’t dismiss the parallels with America, the “superpower” whose
currency has been artificially
elevated by “reserve status” since the 1940s. Not to mention, America’s
population is EXACTLY ten years younger than Japan’s, and its stock bubble
burst EXACTLY ten years later…
List of countries by median age
Like the Japanese Nikkei, the “DOW JONES PROPAGANDA AVERAGE”
has recently been on a tear (PPT
support notwithstanding); despite similarly HORRIBLE economic data and
PARABOLIC money printing…
QE4 Here: Bernanke and Federal
Reserve Quadruples Down On Quantitative Easing
…famously using FRAUDULENT inflation assumptions, in everything from
the CPI…
…to the GDP “price deflator”…
Source: Casey Research
In other words, the EXACT same issues; just masked with more FRAUD, and
temporarily protected
by the “reserve status” that prevents nations from dumping dollars at one fell swoop.
It’s only a matter of
time before “JAPANESE HYPERINFLATION” becomes a reality; and
right behind it, ALL the world’s worthless fiat
currencies.
