Wednesday, November 30, 2005

Nikkei Shoots Up As Yen Falls--Japanese Hate Diplomacy Pays Off


By Elaine Meinel Supkis

The Japanese frontal attack on trading partners pays off as once again, Japan fends off all forms of mutual trade, making it either unsavory or physically impossible for anyone who is a competitor to do business within Fortress Japan. As I keep pointing out, reading diplomatic cables is very productive towards understanding economic plans for the future.

From the BBC:
Japan's Nikkei share index has touched the 15,000 mark for the first time in five years, as strong demand for domestic shares continued.
Investors have been inspired by signs of recovery in the economy, and a rally in US tech stocks has also helped.

Recent data shows industrial output up, improving production and household spending, and more people seeking work.

The Nikkei briefly rose as high as 15,013.24, before it slipped back to 14,872 at the end of trading.

Market 'breather'

Japan's economy has bounced back this year as a pick-up in consumer spending and capital investment has made up for a slowdown in exports, particularly to China.
Alarmed at the potential inroads the South Koreans and Chinese were making in Japanese domestic markets, the ruling party of Japan (with permission from the Emperor's all powerful Household Advisors) undertook a deliberate strategy of culturally and diplomatically alienating their rising trade partners.

Anti-Chinese and anti-Korean propaganda and lessons in school were paired with manga and news commentary that is inflamatory and racist. Then Koizumi deliberately gave honor to war criminals America unilaterally executed. The curious silence in America, the chief victim of Japanese machinations, isn't surprizing when one considers how easily they purchased Ronald Reagan's devotion.

Our own rulers and industrial capitalists are all traitors so seeing them enable or assist the Japanese in humiliatiing America doesn't surprize me. I happen to love parts of Japan's culture, I love anime, for example. Many animators who I admire are anti-militarist/anti-war. They tend to be humanistic and emotional, but they are only a segment of Japan, not the ruling class. They tend to be subversive which is why they appeal to me.

But let's face it: the industrial capitalists and the paramilitary nationalists have formed a fascist front and are in full assault on their trading partners including especially America.

From Xinhuanet:
South Korean President Roh Moo-hyun is not considering a bilateral meeting with Japanese Prime Minister Junichiro Koizumi during the ASEAN-plus-three summit next month in Malaysia, according to the South Korean foreign minister on Wednesday.

"President Roh is not considering any meeting with (Japanese) Prime Minister Koizumi," South Korean Foreign Minister Ban Ki-moon said during his weekly news briefing earlier in the day.

But the South Korean top diplomat said he may exchange views on history issue with his Japanese counterpart Taro Aso on the sidelines of the ASEAN (Association of Southeast Asian Nations)-plus-three summit meeting in Kuala Lumpur in mid-December.

"In the case of Foreign Minister Aso, I will be able to exchange history views naturally and deliver the government's position," Ban said.

"I plan to say that the Japanese foreign minister's prudent attitude toward such an issue will be helpful to South Korea-Japan relations," he added.

However, Ban said nothing has been decided on whether he will meet with Aso. "I don't even know whether he will accompany Prime Minister Koizumi (to the upcoming summit)," he said.
Nothing raises the hackles of the Japanese fascists than a united Korea. It benefits them to keep Korea split and weak. Always, for the last 500 years, Japan has expansionist attitudes towards Korea. This is where WWII really began: in Korea, not Europe.

The Koreans will not get the Japanese to cooperate because they undersell the Japanese in Japan and closing down Korean businesses is vital to the Japanese fascists. So there is no way they will be nice to Koreans, ever.

From Xinhuanet:

An official from China's Foreign Ministry said here Wednesday that it is "impossible" for Chinese and Japanese leaders to hold bilateral meeting in the December summits in Kuala Lumpur due to current chilled relations between the two Asian neighbors.

Cui Tiankai, director of the ministry's Asian Department, said the relations between China and Japan are in difficulties because the Japanese leader stubbornly persists in paying pilgrimage to the Yasukuni Shrine, which honors the convicted class-A World War II criminals along with others died in war.

Japanese Prime Minister Junichiro Koizumi visited the shrine in October, the fifth since he took office in April 2001, which angers China and the Republic of Korea (ROK).

The shrine visit "has severely damaged the feelings of the Chinese and other Asian peoples," said Cui at a news briefing on Chinese Premier Wen Jiabao's upcoming visit to Malaysia to attend the ninth Summit between China and the Association of Southeast Asian Nations (ASEAN), the ninth ASEAN plus China, Japan and the ROK Summit and the First East Asian Summit.

"Under such circumstances, the Japanese side wishes everything proceeds normally as if nothing has happened. That is impossible," said Cui.

Cui said the trilateral meeting among China, Japan and ROK could be decided through consultations of the three parties, but the bilateral meeting between Chinese and Japanese leaders is "impossible."

"The Japanese side should bear full responsibility for the difficulties China and Japan are facing in their relations," he added.
You bet! The Japanese aren't doing any of this accidentally. It is a deliberate slap in the face and the rising economy in Japan is proof locking out trading partners pays off!

I no longer bother with even "liberal" economic websites because the bloggers there are all "free trade" despite the obvious glaring example of Japan. Japan can keep their people employed and happy by severely restricting competition. The many levels of barriers, customs, rules, laws, and sheer nastiness is deliberate and carefully crafted. They will stop at nothing including putting a death grip on our currency, if this makes them stronger.

The worst thing of all is how we fell into this trap: our leaders in the GOP work for the Japanese. They deliberately run up huge deficits so the Japanese can do the currency exchange to keep the yen weak. Note how Bush cuts taxes, even today, he is cutting taxes. This helps the Japanese immensely. It increases their sales in America and increases their leverage over our currency which we have ZERO control over at this point.

When Greenspan tried to raise interest rates, this went agaisnt the Japanese plan so they shot it down. So the housing boom continues as interest rates are below the dollar's inflation, this contrary inflation is a balloon just like our asset market. The Japanese experienced this accidentally in the eighties and they learned that high property values is deadly....so of course, they are enabling this to happen here for unlike the Chinese, they sell us high cost items like cars which require huge debt loads to purchase!

Even though the Chinese trade surplus with us is much bigger than Japan's, little of it is in the high-value spectrum such as very expensive cars. The Japanese are not selling us cheap cars, they are selling very expensive cars, remember! High profit margin cars!

As our own auto industry is rapidly dying, theirs is roaring ahead. Korea has successfully made much cheaper proto-Japanese style cars...I own one...appealing to penny pinchers like myself. I said to the Toyota dealer, "Even if your car is more efficient, the price is twice as high and one would have to drive it for over 20 years to make up the difference," well, you can see why Japan wants us to join in hating China and the Koreas!

Being sucked into the conspiracy, unable to even pry open the door to beef, we go down in flames! The Japanese love "McDonalds" but they eat JAPANESE products there, unlike any other places, the food isn't processed in America and shipped there, it has to be made there, this is why Koizumi pulled buddy Bush's nose very hard and sneered he would not open their markets to American beef!

So, why can't real economic professors or news reporters cover this amazing and upsetting story? Why am I virtually the only person alarmed about the fall in the value of the yen and the diplomatic disaster unfolding in Asia?

Casandra was ignored, too.

Then there is this week's very curious news about Bush and the yuan: From Asia Times:
The November 28 decision by the Bush administration not to name China as a "currency manipulator" has disappointed industry and labor groups here, which say they will resort to international institutions and the US Congress for tougher action. The groups have been seeking an end to China's alleged manipulation of its currency, which they argue makes Chinese exports artificially cheap and puts US jobs and products at risk.
This article as well as the people quoted in it are clueless about Asian manipulation of currencies. I am assuming, I don't have the data to prove this thanks to the Fed making it harder to obtain, the Chinese have resumed buying American bonds and dollars, sinking our inflation into a locked box so the Fed can print oodles of dollars that won't circulate. So it doesn't matter what the relative value of the currencies are, the machine is still grinding along merrily which is why the Fed expects Americans to go even deeper into debt this merry Xmas.

Here is Bloomberg trying to riddle out what is happening: From Bloomberg:

Anyone notice how quickly ``overheating'' has been dropped from investors' China lexicon? In the annals of word-disappearance cases, it merits a mention.

``Not long ago, overheating was all anyone could talk about,'' says John Chan, managing consultant at Shanghai-based China Streetsmart Inc. ``Now, fears of China getting too hot rarely come up.''

Give credit where it's due: Chinese officials seem to be pulling off an orderly deflating of their nation's economic bubble. Along with this year's deftly handled 2.1 percent revaluation of the yuan, the feat suggests leaders in Beijing know what they are doing.

The risk is that China may be flirting with the opposite of overheating: deflation.

Sound like a reach? Not to economists such as Andy Xie of Morgan Stanley. He's eyeing a scenario in which Asia's No. 2 economy experiences falling prices as soon as next year. The reason: overcapacity. China is still producing too much cement, aluminum, textiles and other goods. It's also constructing too many factories, buildings and resorts.
So why is Japan, the most likely place for China to sell increasingly cheap goods to, a closed door? Note that Japan isn't being flooded with cheap Chinese goods! Is the yen strong against the yuan?

Hahaha! Talk about bizarre! The Japanese endured years of depression when the yen was strong under Clinton rather than open their markets to American competition and now, sucking America dry, they end deflation to keep Chinese from underselling them. This means making Chinese goods artificially expensive by deflating the value of the yen, this game is very destructive and usually ends with a war of some sort. In this case, probably WWIII.

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