Tuesday, November 15, 2005

Bush Barks at Yuan While Kissing Koizumi's Cheap Yens


By Elaine Meinel Supkis

Bush heads off to Asia to accomplish practically nothing. Koizumi, who has bought enough American bonds and dollars to keep the yen ridiculously cheap, has ordered Bush to never mention the yen and to attack economic rival's currency instead. Both China and Japan understand America is fatally weak now and both yank our drunk ruler back and forth. This is a farce.

From Yahoo:
Bush had hopes of improving his image on the world stage.

"Reasonable people can disagree about the conduct of the war, but it is irresponsible for Democrats to now claim that we misled them and the American people," Bush said in his prepared remarks.

"Only one person manipulated evidence and misled the world — and that person was Saddam Hussein," Bush added.
Before launching into his Kabuki Kookie Act, Bush first has to attack fellow Americans who have reasonable and correct questions about the lies and crimes of the illegal Iraq war. Fact: Saddam said he had no WMD and no nuclear bomb program since 1991 and the reality was he was 100% correct. So for Bush to openly lie about this fact yet again should lead to him being impeached. A country run by deluded war mongers who lie about war causes end up like Japan and Germany.

Speaking of which, this is Bush's dimplomitic goals this trip:
Meanwhile, National Security Adviser Stephen Hadley told reporters aboard the presidential aircraft that two agenda items on Bush's Asia trip were the huge Chinese trade surplus with the United States and a U.S.-Japanese dispute over U.S. beef imports.

Neither dispute was expected to be resolved on the president's trip, Hadley said.
Can you imagine Hu or Wen of China setting forth to do nothing? To go around gawking? To shake hands over absolutely nothing? This is much worse!

Bush is supposed to be negotiating with Japan, our military/trade partner number one, and he belly flops BEFORE even getting to Japan? Announces his attempts at negotiation are already a total failure? What? WHAT? This is a sumo wrestling match where one wrestler enters the ring drunk and falls out of the ring before they even stamp their feet? Hahaha! This is what the State Department run by Cinderella Condi is doing? Hadley should be fired for yapping like this! What a moron! Does anyone think I would begin negotiations with a "I know you will say "no" so why bother, pass the sake!"????

Back to the unfolding diplomatic disaster:
Japan, the first stop on Bush's trip, and Mongolia, the last, are likely to give him the most enthusiastic response, while China and South Korea probably will be cooler but respectful.

In South Korea, Bush also will attend the Asia-Pacific Economic Conference summit in Busan, where 21 member states are expected to agree to support global free-trade talks. The summit also is expected to agree to put early warning and information-sharing systems in place in case of bird flu outbreaks.

"It is good for the president to show up in Asia and say, `We care about Asia,' because that is in doubt in the region," said Ed Lincoln, senior fellow in Asia and economic studies at the Council on Foreign Relations.

At his first stop, in Kyoto, Japan, the president will deliver what aides bill as the speech of the trip on the power of democracy — not only to better individual lives but contribute to the long-term prosperity of nations.

The remarks — aimed at China — will hold up such nations as Japan, Australia and South Korea as models because of their strong democratic traditions and willingness to help establish democracy in Afghanistan and Iraq.

Bush also is expected to press China to reduce its trade surplus, revalue its currency and curb the piracy of American movies, software and other copyright material.
The power of democracy! Too bad we don't have it here! Probably why we are sliding into economic disaster, no? Actually, does Japan have a real democracy? One party has ruled for how many years? That country is about as democratic as Mexico was for 75 years! Now, Mexico is finally having real elections and Fox tried to have his popular opponent arrested in classic single party state politics. Japan doesn't do that, it simply has never reformed voting districts so most of them are depopulated nearly totally as everyone flows into Tokyo. The right wing practices violent intimidation of anyone who speaks up and slowly have not only taken over but are now being very belligerent, openly snubbing other Asian countries, making fun of American GIs with their ceremonies honoring WWII criminals, pulling our chain as they yank our supposed leader around, a man who has very suspicious "wins" in "elections" full of disorder and vote cheating not to mention not even bothering with vote counting!

Well! Meet Mr. Dollar who works for Japan: From Business Week:
In Tokyo, he's a faceless bureaucrat in a town full of them. But in trading pits in London and New York, and among chief financial officers from Detroit to Stuttgart, Vice-Minister of International Affairs at Japan's Ministry of Finance Zembei Mizoguchi enjoys celebrity status. And with good reason: This financial diplomat -- call him Mr. Dollar -- is the architect of perhaps the biggest single-handed currency intervention since World War II. On Mar. 5 alone, the Bank of Japan, acting on orders from Mizoguchi's ministry, embarked on a record $20 billion yen-selling frenzy that pushed the dollar to a five-month high of 112 to the greenback.
Mizoguchi's sole goal in life is to keep our currency and Japan's at a totally fake level. To do this, he basically prints up the same number of yen to equal the purchases of American red ink. So, as we slosh lower and lower into a sea of red ink, our government keeps running because the Japanese convert this into fake yen which they then TAKE OUT OF CIRCULATION. This "money" then sits idle, so to speak, except it is a great tool for Japan: they get to sell super cheap to us and yet the world doesn't flood with yen displacing other currencies like the euro! So the yen is used by exactly no one except domestic Japanese who don't mind the high prices caused by the yen not existing in real time trade at home, it never comes out of the dark to circulate.

Meanwhile, our own government can run up tons of debt and see it never appear, both American and Japanese governments are taking on more and more SHORT TERM debts at ridiculously low interest rates which have been manipulated by Greenspan and Mizoguchi meanwhile, the LONG TERM debts are ballooning, too, because both governments have to now spend like fiends to keep political power! This destabilized system is going to sink both countries for the same reason: both are going to see a huge bulge of baby boom retirees and Japan won't allow any real immigration while their women cease having babies overall. America has tons of immigration so we are much better off.

Except we are spending all our future money now!

While noodling around the net, I found this article about the yen which is a good take on the yen/dollar relationship: From Money Week:
Why is Japan intervening?
Because it believes the yen needs to be held down to keep Japanese exports competitive. Thanks to a decade of deflation, Japan has suffered from anaemic consumer spending as households stave off spending in the expectation of lower prices in the future. As a result, Japan must look to its export sector to revive growth. A policy of intervention puts yen in the hands of foreigners, who are more likely to spend them than the Japanese themselves. At the same time, keeping the yen low helps the fight against deflation: it leads to higher import prices.
We can't leverage the Japanese because they are propping up our reckless government. When Clinton balanced the budget and then talked about paying off the debts hidden in Japanese banks, Tokyo nearly had a heart attack. Bush claims all that millions of loot handed to him for two elections came strictly from Americans.

If anyone believes this, they probably believe that Saddam lied about WMD too.
The policy of intervention began in earnest in August last year, when the decline of the dollar gathered pace. In 2003, the Japanese government spent $100bn buying dollars in an attempt to hold down the value of the yen. In the first two months of this year, it spent another $100bn. And Japan’s parliament has authorised the spending of a further $360bn this year.
The Japanese want us to have a currency war with China but the Bush/Greenspan plan to kill the dollar hit the yen. So Japan stabilized the dollar and caused the euro to shoot up in value. The Europeans figured out this game and have driven down the euro again but this game of "drive your neighbor off the cliff" is exactly the sort of thing that causes world wars! Make no mistake, this will end badly.

America, as the world's currency, cannot play these sorts of games. If we cease to be a solid, reliable floor and become the toy of all other governments, yanking us here and there, forcing us into situations that are bad for us in the long run, we collapse the the world roars into action as chaos ensues. Bush can't even get Japan to buy beef from us! And that is a very low-value trade item! Ridiculous. Forget selling planes or cars, we can't even sell cows!

Fun.

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