EYE-BALL’s Guru on – The Turmoil is beginning – Japan’s Economic Stimulus to tip the scales –
Latest GURU Posts:
– 20th Jan – Wayne Swan Tips his hat at New Yorker’s – – 10th Jan – The ANZ Whitehaven Hoax – – 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan – – 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … – 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong – 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting – – 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases – – 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING – – 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s – To see more GURU posts: – click here … |
Title: – The Turmoil is beginning – – Japan’s Economic Stimulus to tip the scales – | Author: EYE-BALL Guru | 22nd Jan 2013 | |
The seeds to more global turmoil are currently being sown by our neighbours to our north. Two of Australia’s largest export markets are playing brinkmanship in war terms over the Senkaku/Diaoyu islands, in addition, Japan have announced a stimulus package that sends a message that Japans decades long currency appreciation is about to end. Japan have been an economic basket case since the early 90’s in the aftermath of the 87′ crash and its fallout. See Yen (¥) currency, and Nikkei Charts below: [click on chart to enlarge in a new window – both charts linked from ‘Trading Economics‘ website.] Japanese ¥ v US$ since 1976: Japanese Nikkei Index 1996: Both these charts tell interesting stories – but first read below a brilliant synopsis published by the UK’s ‘Telegraph’ on what the sabre rattling, and the proposed Japanese stimulus might really mean for the rest of the world.
The story above was re-branded in today’s edition of the SMH – link to that story here … Japan has spent a long time dealing with its deflation and its growing Debt/GDP ratio, its current position is where Australia is headed and how soon it happens depends on how quickly things escalate to our north. When a nation like Japan draws a line – then the world had better take notice. If the sabre rattling with China escalates and the US does become involved – how quickly things will change for everybody. This involves our two largest export Nations, and our only real military ally – all involved in a tryst that would see our interests quickly shunted out and into the crapper – just as easy and natural as it is for a baby to fill its nappy. Does anyone now question the strategic deployment of US armed forces to Darwin only a matter of months ago? Do you think Gillard had, or has any idea what was really behind the deployment – the US wants dumb Leaders representing its allies … and we’ve had that for some time now … The Chart Summary: The Nikkei Index fell from its lofty highs of 37,000+ as shown by the chart – what it does not tell you is the decades long financial disaster when Banks were allowed to sit on their losses arising from that equities crash and this is where the stagnation, and then deflation became a problem. Rather then allow Banks and the like to fail because they became too greedy – just as they have done since the GFC … Japanese taxpayers through Leadership were forced to pay for the cost to prop up the economy through stimulus debt … all sound familiar. 20 years this has gone on for and our Leaders as with European and Nth American leaders are telling and trying to sell a story that does not end up the same way. The ¥ has been a currency that has seen its US$ value appreciate from ¥300+ to the US$, to below ¥80 in a 35 year trend. Since the Japanese PM has talked tough – it has caused a selling of the ¥ on global markets, and a sharp spike in the value of the Nikkei Index as reported above. This is not good for Australia – some of that outflow of capital will find their way here and force our currency even higher. What will Swan and his lab-rats at the Treasury, and the Glen Stevens led RBA do in response? We live in times where all of Nth Africa is a powder keg, add Syria, Lebanon Israel Iran, Afghanistan, Pakistan, and it can be seen that the possible seeds of a much larger and escalated War have already been sown … Have America gone off to early in their claim that killing Bin-Laden will end the War on Terrorism and make the world safer? Has Obama got a real handle on what is happened as America begins its slide from the top perch … are they going to slide willingly or will they try to hold No 1 position … Look around everybody – most are asleep at the wheel and oblivious to what is happening around them … this year is building to be so much and this Nation is at the face of an abyss that nobody really wants or is prepared to talk about … |
|
Please – if you found this story to your liking and would like to promote it to your social media contacts – i.e. Twitter, Facebook, or other icon linked account below – please click your favoured Icon(s) to promote the story. Thank you.
Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
The EYE-BALL Guru … |