The Yen Goes Kamikaze 3

COMPLETED 8 NOVEMBER 2014  

If You Thought Atomic Sushi, Hello Kitty and Pixelated Porn Were Some of Japan's Most Famous Exports, We Have News For You........Yeah.....You, Fag

1.   Who's Fucking The Yen? (Or Is The Yen Fucking Itself?)

1.   None of this is happening in a vacuum. That Japan's version of QE started hours after the US officially claimed to have ended theirs, should raise eyebrows...... 

2.   The present scenario is this:  the Jap Government intends to buy ALL of its own bonds.  Forget market pricing, the free market blah, blah blah.  It's a manipulated scenario intended to levitate the stock market and the bond market, so that it appears everything is looking fine......Yes, it will boost the Jap stock market, but it will also boost the US stock market because the Japanese State Pension Fund and the Ministry of Finance will chuck money into it as well.  They will be paying in US Dollars to get into that market and selling off the yen.  Effectively, they are moving the pensioners assets offshore - and the US is getting Japan to do its dirty work by levitating the US stock market as well.

3.   But.....get this....in Part 2 we showed chart porn that:

• Jap household income was falling;
• Jap household disposable income was falling; and 
• Jap household spending were falling; 

But there's more....the much vaunted Jap household savings rate has also collapsed (as the huge ageing population draws on its savings to live):

4.   Do you get what's brewing...??!! You don't...??!!  OK, we'll tell ya.....

• Japan has a huge ageing population, dependent on generous social welfare;
• Japan cannot cut back on its social welfare;
• Japan has MASSIVE private and public debt. 25% of Government revenue goes to pay interest on that debt;
• Japan needs more tax revenue to service debt, but can't get it because of a shrinking (falling birth rates) and ageing population;
• Japan now imports more than it exports;
• the financial position of the individual Jap is collapsing;
• despite the surge in the Jap stock market, the Yen is dropping against other currencies on the FX markets;

5.   THE JAPS ARE CAUGHT IN A TRAP.....

• They desperately want to trigger inflation in their own country. The recent Sales Tax of 8%  that pushed up the cost of living via underlying inflation (and forced the average Jap to cut back even more) is, according to the banksters, not enough;
• Through currency creation out of thin air to buy up the Jap bond market, the Japs are attempting to trigger a massive buying spree on the Japanese and US Stock Markets;
• That currency creation is adding to consumer inflation in Japan - and debasing the Yen by increasing the monetary base;
• Despite the Quantity of Yen being (electronically and physically created), questions will arise about the Quality of theYen as a viable currency;
• That makes the Yen liable to speculative attacks on the FX markets;
• That depreciates the Yen even more;
• Whilst that cheapens exports, it increases the cost of imports - and underlying inflation, forcing the Jap consumer to cut back even more;
• With a weakening yen and mounting financial liabilities, Japan may be forced to sell its overseas investments in order to import capital;
• That sell off of their overseas assets can trigger Deflation abroad - whilst the Japs are desperate to trigger (even more) inflation at home;
• On the one hand, the Japs are desperate to import capital.  On the other hand, they need to stimulate the Japanese and US stock markets;
• As the Japs sell off their overseas assets and the Yen weakens, the Chinese Yuan will become stronger - and that will hurt Chinese exports.  Coupled with existing credit and liquidity problems in China, that may trigger Deflation in China as their economy slows down - which as at November 2014 - it already is;
• China and Japan will be in a currency war for survival;
• You seriously expect the US and the EU to be immune to this....??

2.   Our Current Bottom Line As At November 2014

Japan's newest export.......DEFLATION


3.   Memo To Fags

WATCH JAPAN........when Deflation hits, everything goes down in value - including your retirement funds.

The question is......what happens AFTER Deflation......there will still be shit loads of (created-out-of-thin-air) currency sloshing about in so many countries engaged in the debasement currency war, to see who can cheapen their currency to zero first.

Monetary history will tell ya that every fiat currency has failed - just like every reserve currency failed.

We don't fuckin' know what's gonna happen afterwards if we're right on the Deflation-first scenario.

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