Japan has been in a two decade long recession. They have 50% more debt as a percentage of GDP than any developed country on earth. They have a rapidly aging population. They have no energy resources. But their central bank does have a printing press.
The master plan announced overnight by their Janet Yellen – Kuroda – is to buy 8 trillion to 12 trillion yen ($108 billion) of Japanese government bonds per month. This means the BOJ will now soak up all of the 10 trillion yen in new bonds that the Ministry of Finance sells in the market each month. This is all being done to reduce the value of the Yen and create inflation.
The central bank is already the largest single holder of Japan’s bonds, and the scale of its buying could fuel concerns it is underwriting deficits of a nation with the heaviest debt burden. The BOJ could end up owning half of the JGB market by as early as in 2018. This is the act of a desperate crazy man. He has set in motion a series of events that will lead to the collapse of Japan. It will be a failed state. It will become a modern day Weimar Republic.
“Bank of Japan Gov Kuroda, laughing like a James Bond villain who knows it’s too late to stop his plan from unfolding.” – Patrick Chovanec
Kuroda is an evil genius. He has single-handedly driven the Japanese stock market up 1,000 points in 7 hours and ignited stock markets around the world. The world is saved. He has proven that the world can be saved by printing trillions in new fiat currency and using it to buy stocks and bonds. Why didn’t we think of that? What could possibly go wrong?
I was reminded of another chart I once saw. Those Germans were in a bit of a pickle after World War I. Their central bank also provoked a stock market rally with the same master plan.
I’m sure the Japanese will successfully save their economy by printing yen at hyper-speed and using it to buy their ever increasing amount of public debt and as much stock as they can get their wily little hands on. Hyperinflation is so old school. No chance of it happening in the land of the setting sun. Right?
Nikkei Futures Up Lock Limit, Yen Collapses, Dollar Up, Gold Down as BoJ Pledges “Unwavering Determination” to Get 2% Inflation
“Whatever it Takes” Japanese Style
It’s a world truly gone mad.
In a surprise move today, the Bank of Japan announced further quantitative easing, dominated by long-term Japanese government bonds. The BoJ also announced it and would triple annual purchases of exchange traded funds and property investment trusts.
BoJ governor Haruhiko Kuroda defied objections from four fellow board members, arguing that a tax-hit economy and a lower oil price have led to “a critical moment” in the country’s bid to escape from deflation.
The Financial Times quotes Kuroda as follows: The extra action “shows our unwavering determination to end deflation. There was a risk that despite having made steady progress, we could face a delay in eradicating the public’s deflation mindset. This is a pretty drastic step, so I think there will be a significant effect [on the economy].”
Stunning Market Reaction
•Nikkei futures up lock limit (1160 points)
•S&P 500 up 1.0% (new all-time high)
•Yen plunges 2.5%
•Dollar rises 0.9%
•Gold sinks 2.75%
•Oil down 1.1%
One of my top two trade ideas worked today: Long the Nikkei hedged with a short-yen position. Gold certainly didn’t. I still have faith central bank madness will eventually light a fire on my second key idea.
Buyer of Only Resort
Not only is Japan’s population in decline, the remaining population is aging. Somehow, Japan believes its economy ought to grow anyway. In addition, Japan wants 2% inflation even though that is the last thing Japanese savers need.
Given that Japanese pension funds are now net sellers of Japanese government bonds, and given Japan’s pledge to destroy the Yen to fight deflation, the buyer of only resort of Japan’s government bonds is the Bank of Japan.
Currency Crisis Awaits
Japan’s government debt is over 250% of GDP. Japan’s debt is so high that an interest rate of somewhere between 2 and 3 percent will consume 100% of tax revenue.
Amusingly, the central bank wants 2% inflation and 0% bond rates. How’s that going to work?
The answer is “It’s not”.
Today’s message is clearly “get the hell out of the yen”. Somewhere down the line, a global currency crisis awaits.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
Japan is in the midst of the 20 year recession. There is an entire generation of lost young adults.
America is following in their footsteps.
One thing I still don’t understand about QE or any system buying government bonds to prevent asset deflation on a banks balance sheet.
Take the 6 years by the Fed in attempt to keep people in their houses and paying their mortgage under the pretext that the home owner is fooled into thinking the value is what it is.
After a period of time. Is it not time to pull the plug on home owners and have them eat their equity loss?
In other words, the bank would have stollen enough of their house in the form of mortgage payments in addition to having stollen enough of depositors money through devaluation to make the bank solvent by now.
After reading Collins, I’d say you’re witnessing the symptoms – the design would be to liquify insolvent bank assets and move them to the BOJ’s balance sheet in exchange for liquid yen on the banks books. Wouldn’t it be the same as what the fed has/is doing? If so, does anyone know if the Jap banks are not lending, etc., ’cause if so, then its the very same. When the SHTF, the BOJ will just say ‘so solly, we no good’ and let ‘er burn – only to reopen with SDR backed yen or whatever. Along the way, the jap gubmint can blame the central bank for greed, corruption, theft, or whatever – swear it’ll never happen again but there’s a slice of shit pie for everybody, and brighter SDR backed days lie ahead………?
True Japan’s population is in decline–which is ultimately a good thing, because the land there is completely overpopulated. True Japan is completely in debt over its head… but the one thing that distinguishes Japan from Amerika is that Japanese can add and subtract.
They spent hundreds of billions on infrastructure and in the end they actually got something to show for all their money–and what did we get after spending several trillion dollars in Iraq and Afghanistan?!
We got absolutely nothing–zip! Zero!
The only people who made out like bandits were Raytheon, McDonald Douglas and the rest of the military industrial complex.
In Japan they have a PRIVATELY OWNED national railway system which includes PRIVATE OWNED bullet trains and PRIVATELY OWNED city bus lines. Their bridges aren’t falling down and rusting. When they spent their money–unlike the USA with fat, lazy, stupid Americans belonging to communist workers union, the Japanese actually broke a sweat and created something.
Japanese cars and consumer products are VASTLY superior to American made junk (as the Japanese deem our stuff). The only thing Americans seem to produce of value now is scrap cardboard, movies, pornography and military weapons…. oh, yes–our ponzi financial system, of which we enforce at the point of a gun in a global “Dollar Tyranny” which is soon to collapse as well.
Most of the articles we see written above is from wonks who have never visited Japan and who have gained all of their material from internet sources, and it all boils down to… baloney.
Shinmen
You evidently didn’t learn maf.
Japan is fucked.
Deal with it.
You dumb fuckers bought Rockefeller Center for $2 billion in 1990 and it was bankrupt 3 years later. Your fucking country has been in a 20 year recession because you propped up your insolvent financial institutions.
I don’t give a fuck about your infrastructure and your bullet trains. You also built nuclear power plants on earthquake faults and coast lines. How fucking dumb is that?
The Japanese are fools and printing trillions of yen will not save your asses. It is accelerating your collapse.
Wonk on that.
Japan: QE As Morphine For A Terminal Patient
Submitted by Raúl Ilargi Meijer of The Automatic Earth
You can jot down Halloween 2014 in your calendar, and it’s unfortunately too tragic to make proper use of the irony involved, as the day Japan committed suicide. The sun is no longer rising. Not that the vital signs weren’t bad before, indeed it might not have survived regardless, but this lethal blow announced today is still quite the statement.
That financial markets interpret it as a reason to cheer and party and make lots of dough is yet one more proof of how shallow and single-minded the people operating in these markets are, lacking all insight in historical context, longer term consequences, wars and politics, and the human mind.
Because the ‘QE as morphine’ concept introduced today by the megalomaniac Shinzo Abe and his central bank raving mad puppets will change the world in ways that make financial gain less than even an afterthought, except perhaps for those of us who cannot see beyond today, or beyond the one single lonely dimension money is of any use in.
If and when a country resorts to having it central bank buy up – the equivalent of – all sovereign bonds it issues, the snake truly eats its tail, and not in a metaphorical sense. Japan eats it children, most of them as yet unborn, to keep its rapidly ageing population contented and in relative wealth, because the alternative would cost Tokyo’s financial-political power cabal their jobs and heads.
Japan’s problem is, and has been for many years, twofold: first, the Japanese people lost the spending power to keep the domestic real economy growing some 20 years ago and never got it back, and second, a whole slew of successive governments refused to restructure the debts in the financial sector, and instead put those debts on the public tally.
The negative growth announced today in US consumer spending should be a warning sign, as should similar numbers that have come from across Europe for a while now, a sign that we need to think about how to run our societies and economies without everlasting growth, and without the ever more failing and ever more costly policies aimed at constructing and maintaining that growth.
However, the worse the policies are for the real economy and the people who depend on it for survival, the more money the financial markets, and the banks, make. It truly is QE as morphine, and Japan has shown us today that morphine can alleviate pain, but it is also in the end the ultimate killer.
It may already be too late, but we can still make the effort to not fall into the same trap Japan has fallen in. Which in essence is simply trying to recreate a past world that is long gone, by applying measures that ‘wise men’ say are sure to bring back the past, and then more.
We must look at ourselves and wonder why we want more. And realize that if we don’t take that look, and we continue on our present path, we will all end up like Japan, guaranteeing that our quest for more will leave us with less, much less. We cannot build our world with credit, we need to work in order to build it. And we cannot borrow our way into growth, nor do we need to grow.
Halloween 2014. A day we could have learned something.
When the economic collapse comes–Japan will weather it without race-riots, without looting and burning and without a civil war.
When the economic collapse comes in the USA… the USA will break apart as did the Soviet Union.
There will be massive rioting, race wars, looting and pillaging when you stupid, fat lazy Americans cannot get their welfare checks, flat-screen tv’s, NFL football live, EBT payments and corn flakes. You will all become slaves to a global financial ponzi scheme introduced to remedy your inability to manage your spending habits.
Japan will survive quite nicely despite some hardships.
America will pull itself apart–like a bunch of school children.
Shinmen
Your collapse is imminent because you have idiotically put your faith in madmen central bankers and politicians. You will do just great with nothing but old people and no energy resources. You are so racist that allowing younger immigrants into the country to work the jobs is a non-starter.
At least your male dominated society has porn and alcohol.
Your history of civility as a country is so glorious. Raping, murdering, plundering, and attacking countries. We should all bow down to the stoic Japanese.
What a fucking joke you are.
What noble people the Japanese are. Mass grave of civilians slaughtered by Japanese soldiers.
Shinmen
Too bad your Japanese engineering skills with cars didn’t translate to nuclear power plants. Don’t eat the Fukushima sushi. 🙂
Shinmen
Too bad your Japanese engineering skills with cars didn’t translate to nuclear power plants. Don’t eat the Fukushima sush
Dear Fat, Lazy, Stupid Amerikan Administrator….
All the reactors in Fukushima were built by Amerikan Engineers.
Namely General Electric.
Wrap your mind around this fact.
And lazy minds always revert back to WWII and the war crimes committed there.
Why don’t you deal with reality of the here and now… as in the imminent collapse of the USA?!
FYI–the USA is going to collapse and take the whole world down with it… including Japan (who will weather the storm easily).
The US “Dollar Tyranny” is coming to a close soon.
Soon the North Amerkan continent will fly different sovereign flags (secession).
Your carrier fleets will be scrapped.
Your missile submarines will be tied up to docks to provide power to the grids.
Your armies will be sent home to pick up trash on the side of the highways (work they are qualified to perform).
And when this all shakes out… Japan will continue to pump out badly needed consumer goods.
American will be living in piles of rubble.
BANZAI!!! BANZA!!!
Your collapse is imminent because you have idiotically put your faith in madmen central bankers and politicians.
And the USA has not?!
The endless QE?! The debt to China to finance endless wars?!
You’ve got to be shitting me.
Your country is 170 trillion dollars in the shitter (on and off books amounts owed).
There is no way this can be paid off, on time or otherwise in any way shape or form.
The US dollar tyranny/ponzi scheme enforced at the point of a gun is coming to a close.
But I forgot to add that when this collapse comes, the USA will provoke a another war to cover the collapse… and the religi-tards, conservi-tard’s, flag-wavers and other idiots will line up like good lemmings and trot off to be slaughtered in nuclear flames.
Japan will sit back and watch this all unfold–unmolseted.
Japan will emerge a superpower again.
The USA has nothing to offer to the world except financial schemes, porn, scrap paper and metal and action movies.
Where is the Newz here? Japan has been Fuked since Fukushima. This doesn’t make their situation any worse, they already were going down the toilet. In fact, LLPOH owes me a bundle on this.
RE
Don’t you know this is all done to bring in the Mark of the Beast economy (ie, buy and sell) and FINAL ENSLAVEMENT of mankind???
The brilliance of the Japanese in one chart.
They’re FUCKED.
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@ Shineman Takezo
You make some excellent points about the problems we face here that Japan doesn’t Shineman.
Fukushima however is just to much of a negative and outweighs the good points you mentioned about Japan relative to us.
Especially when one considers Japan is an island, lacking natural resources, and poisoning the water, soil, and food around it and within it from this disaster with permanent radiation. Printing yen will do little to solve this problem, and those who can leave Japan eventually will. A sad situation that was accidental but a fatal problem it would appear.
China is going to consume Japan and enslave its people. Without the US Military to protect their asses they are finished.
Navy Official: China Training for ‘Short Sharp War’ with Japan
PLA stronger than Japan’s forces in potential conflict, says analyst
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140626000017&cid=1101
Bottom Line———> THE JAPS ARE FUCKED
Thanks Golden Oxen….
For not reverting to past history like a donkey (as did the childish administrator–as did others, who do not speak Japanese, who do not know the culture, and who’ve never, ever visited Japan first hand).
Yes Fukushima is a bad problem–but it encompasses only one small prefecture (county) within Japan. And TEPCO who is allegedly handling the problem is dropping the ball. But Japan in the past has recovered from similar massive disasters: The Kanto and Kobe earthquakes, the criminal firebombings of all its major cites by the USA in WWII, and the criminal nuclear strikes by the USA. FYI–after WWII Japan lay in complete ruins–and then took American philosophy (or work and production) to heart and now dominates the worlds consumer markets with its superior good.
The childish administrator keeps mentioning the aging population–FYI Japanese hi-tech industry has already made secret breakthroughs in AI… which will be bolted into their advanced humanoid robots (which can walk and move like humans) sometime in the very near future when the public can be conditioned to accept the presence of a thinking machine– and this will negate the need for a workforce on production lines which already utilize the most advance 4th generation assembly robots on the planet. Look for Amerikan jobs to evaporate when this happens.
The childish administrator keeps posting the debt ratio chart regarding Japan… it is irrelevant. They know full well a debt collapse is coming and are prepared to deal with the consequences when the “Amerikan debt bubble” pops and sinks all the ships. They are currently building up their military and secretly building up their nuclear forces to deal with a world in which the Amerikan military does not exist. FYI–the cooling pool at Fukushima contains plutonium–which they are storing to use in nuclear bombs (one of several storage facilities in Japan).
Japan will literally be screwed when the debt ships go down–but it will not cease to exist and break apart like Amerika, who will mimic the old soviet union.
Don’t fuck with the USA.
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If the little mindless, chin-drooling child who is posting under the title of “administrator” would compare photos of Nagasaki and Hiroshima back in 1945–and compare these photos to present day Detroit or many other metro areas in the USA, you would not be able to determine where they came from.
The devastation would appear identical.
Photos of Hiroshima are the first thing a “flag-tard'” posts when they cannot respond to reality.
Look at any modern photo of Hiroshima today and you will see a gleaming city that rose out of the ashes.
Look at a modern photo of Detroit, Washington DC or Chi-Congo (formerly Chicago)… and you will see squalor, ruins and desolation on a vast scale.
Amerika won the war, but lost the peace (big freakin’ time)… mainly due to the childish, mindless flag-waving exhibited by the administrator (and those of his ilk) on this thread. The USA and the Amerikan flag-tard’s (like the Administrator) squandered away all of American’s gains (both economic and social) by the middle of the 80’s.
It’s been downhill ever since.
Shinmen, the yellow shill for a dying, dysfunctional, racist, debt saturated, delusional country, needs a little lesson in the future of the Land of the Setting Sun.
Written in 2011 predicting exactly what is happening today. So Solly Shinman. You and your country are fucked. Don’t eat the Fukushima sushi.
Shinman
I hope the United States breaks apart! My ancestor fought a war to try and make that happen. May be ,finally, we will be able to cut the libtards loose. The dumb bastards don’t believe in gun ownership, in the South there’s a gun behind every tree. Wonder who will control that battlefield? PS we will give California back to the mexicans with a note of apology for ever even wanting that F’d up place.
“… compare these photos to present day Detroit or many other metro areas in the USA, you would not be able to determine where they came from. ….. The devastation would appear identical.”
—– Shinmen Takezo
Identical??? Do you engage in extreme hyperbole often?
Yes, Detroit is a shithole. Yes, you can find all kinds of pics of abandoned homes and property.
But, to say the devastation is identical is pure horseshit … and, make it hard to take you seriously.
Wow! Look! Only one building is left standing!!
[img]http://t3.gstatic.com/images?q=tbn:ANd9GcQxS9hsz8RDHM3ysiNreDl08gCVhEVcW7Q-JTpTUAn-f5xNxh1E[/img]
“But Japan in the past has recovered from similar massive disasters: The Kanto and Kobe earthquakes, …blah blah blah” ——— Shitman Takezo
Comparing the worst nuclear plant disaster in the history of the world …. to an earthquake. Bwaaahahahahahahahahahaha!
You have zero fuckin’ credibility. Must be a Jap thing. Get lost punk. Come back if they find a cure for retardation.
Stucky (the white monkey) posts a photos of modern day Detroit… but he fails to mention that half of those high-rise buildings stand completely empty. Like a ghost town Detroit is. Companies and people of substance have fled the city leaving it to rot. More than half of the housing properties stand empty, abandoned or bulldozed by the city–with the forest returning.
Shitman (the slant-eyed chimp) says that the picture @11:03 (french fried Hiroshima) and the picture @7:15 are SO IDENTICAL that you can’t tell the difference.
Fuckmedead.
To all you people who think slanty-eyes have the highest IQ’s … well, Shitman is doing his best to prove you wrong.
“I hope the United States breaks apart! My ancestor fought a war to try and make that happen. May be ,finally, we will be able to cut the libtards loose. The dumb bastards don’t believe in gun ownership, in the South there’s a gun behind every tree. Wonder who will control that battlefield? PS we will give California back to the mexicans with a note of apology for ever even wanting that F’d up place.”
Contrary to popular belief… most of California is more conservative than the most conservative sections of Texas. California is politically dominated by a few densely populated “leftist” counties. As for the remaining areas (which control all the water, oil, food production, hydro-electric power, etc.), these area are far more conservative than say Texas or Montana.
Also–when it comes time for secession… California will beat Texas to the punch. California and Texas will lead the secession wave…. also California and Texas will lead the nation in chaos as well (short lived due to the high gun ownership rates). Don’t worry about California–the illegal Mexican will be run out of that state, along with other illegals.
There is a reason why Nissan and Toyota have abandoned California or are in the process of abandoning California… secession and breakup of the USA. They have chosen Texas and other states as an entry point for their products into North America once the breakup is complete. Honda FYI is also going to move out of California (partly from my advice) and into Texas as well. There are other Japanese companies making ready to get out as well.
The collapse of the USA is coming soon. Everyone “in the know” inside Japanese government is aware of these facts. When the USA pulls down Japan–Japan will rapidly shift to a gold backed currency and write off all the old debts denominated in the fiat currencies. The USA will just default and move into a chaos/war mode (as usual).
Shinman I have posted many times the United States will go to war and I mean all out war. Take country’s and resources at will. The US military is the most powerful on earth and before this country falls we will put it to work. Book it!
China would consume Japan without the US standing in the gap. Do you dispute that fact? Can Japan defeat China?
Shinman can you get me a good deal on a Toyota Tundra? Do you have like a 30% off coupon or something to that affect?
Shinmen –
Your ideas are interesting to me, for this reason – I just moved to Dallas/Ft. Worth. and the economy here seems to be cooking like none other in the nation. None that I read about, anyway. It’s been Big News here lately that Toyota is moving the HQ to Plano, a suburb of Dallas.
I’ll keep my eyes & ears open for other news about Honda, et al, also looking to move here.
When you say, “partly from my advice,” What do you mean? Are you on the inside?
Yes Tim–I am on the “inside” of things.
FYI–the wife is still connected to the Japanese government, having worked personally for several of their ambassadors. As for myself, I have worked within the Nissan “kiretsu” (family of companies) –having worked directly under the chairman of the board for a supplier who does a couple billion dollars a year in business in Tokyo. When these Japanese major directors come over and shake their heads at the way the USA government and California is doing business, I just tell them to move to Texas or Nevada. FYI–they located here mostly because of the lure of California… which has worn off.
And Texas is hopping hot economy wise now. When the USA dollar/ponzi-economic-system collapse come… the thugs in DC will try to introduce a new “money system” under some sort of global system of finance which will mean loosing your constitutional rights and so forth. In effect they/them will be replacing our current fiat money/ponzi system for another ponzi-system.
The western states will reject this new scam, in effect saying… “we can print our own money–why do we need your’s and your debt?!” –then the waves of secession will begin. It will also include the western portion of Canada who reeling under the collapse will reject their own government’s collaboration with the new regime.
No there won’t be any Civil War II battles like Ghettysburg or Shiloh. Yes chaos in the transition. Riots. Looting. Rampant crime from the illegals. But this will pass.
And sorry, I only get employee prices on Japanese cars… and it’s not such a great deal.
“The western states will reject this new scam, in effect saying… “we can print our own money–why do we need your’s and your debt?!” –then the waves of secession will begin.”
Quite possible Shineman, Would expect a return back to Gold backed currency and silver coinage if we get such an outcome. Many are fed up with the monetary thugs already as you aptly point out.
More U.S. states looking to legalize gold and silver as currency while ditching dollars
by J. D. Heyes
(NaturalNews) As the U.S. government continues to crank out dollars like they were Monopoly money, more and more states – fearing an eventual collapse of the currency, most likely – are looking at ways to legalize and utilize gold and silver as currency.
Shunning trust in the Fed chairman Ben Bernanke, the Treasury and the economic policies of the Obama administration, more than a dozen states are considering adoption of the alternative currencies.
Utah lawmakers and Gov. Gary Herbert enacted legislation in 2011 that authorizes bullion for use as currency; now, similar bills are under consideration in Kansas, South Carolina and other states, according to Bloomberg News.
The measures are being supported by limited government advocates in these states yet for now passage of such laws are largely symbolic. You can’t, for instance, go grocery shopping in Utah and pay for your items with gold.
Concern about impending ‘collapse of the dollar’
These measures are important because they are reflective of growing concerns over the longevity and viability of the U.S. dollar – concerns that have been heightened by the Fed’s rather unconventional moves (like massive printing of trillions of excess dollars) in recent years, in some weird attempt to “stabilize” the economy, says Loren Gatch, a politics professor at the University of Central Oklahoma.
“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” Gatch, who studies alternative currencies at the Edmond, Oklahoma-based school, told Bloomberg. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”
There is good reason for such concern.
For one, Bernanke and the other money masters have been manipulating currency and the markets for years, all in a way that benefits the Wall Street and banking elites. The Fed chairman has been keeping interest rates near zero since the beginning of the Great Recession in December 2007 primarily because elevated rates would devastate the federal government, which is paying hundreds of billions in interest payments on borrowed money as it is.
And this irresponsible fiscal manipulation is ongoing. Per Bloomberg News:
The Fed said in March it would continue buying $85 billion in securities each month in a program known as quantitative easing that has ballooned its assets beyond $3 trillion and is aimed at keeping long-term borrowing costs low to support economic growth.
Moreover, economic figures are being fabricated. According to an inflation measure “favored by the Fed,” Bloomberg notes, consumer prices rose just 1.3 percent in February over the previous year. Yet anyone who is trying to earn a living knows that two of the most purchased items – food and gas – are chiefly responsible for the dramatic cost of living rises in recent years. And yet, they aren’t even factored into the government’s inflation figures because they are considered too “volatile.”
Gold, silver making comebacks
Investors bet that inflationary pressures would increase because of the government’s phony “economic stimulus” measures that did nothing but pile on more debt. Still, that speculation led to a 78 percent rise in gold prices since December 2008. The historic precious metal hit a high of $1,923.70 an ounce in 2011; since then, prices have retreated and have remained flat. Now they are around $1,535 an ounce, which is still high.
But when inflation does kick in – and it will – the value of gold and the other historically valuable currency, silver – will increase as well. States considering using these precious metals as currency once more seek to use them as a fall-back when the dollar finally does collapse.
Texas gold is not just in the oil fields
One state, in fact, is so concerned about the dollar’s economic future it is considering legislation to regain physical possession over its gold.
Texas Gov. Rick Perry and a number of lawmakers want to establish the Texas Bullion Depository to store some 6,643 gold bars valued at about $1 billion that are currently being held in a New York bank warehouse. The gold, which is owned by the University of Texas Investment Management Co., or UTIMCO, took delivery of the bars in 2011 over concerns that rising demand would eventually outpace supply [http://www.naturalnews.com]
The facility would also accept deposits from the general public, and serve as a basis for a payments system in the state in case a “systemic dislocation in a national and international financial system” were to occur, the legislation says.
Jim Rickards, the senior managing director at the Tangent Capital Partners LLC in New York, and author of Currency Wars: The Making of the Next Global Crisis, said if Texas were to enact its legislation, it would mean sovereign backing of deposits, like when the dollar was based on the gold standard, and make the purchase and storage of gold easier.
“We are seeing a distinct movement back to a world where gold is considered money,” Rickards told Bloomberg News.
Sources for this article include:
http://www.bloomberg.com
http://money.cnn.com/2011/02/17/news/economy/cpi_inflation/index.htm
http://www.naturalnews.com
“Shinman I have posted many times the United States will go to war and I mean all out war. Take country’s and resources at will. The US military is the most powerful on earth and before this country falls we will put it to work. Book it!
China would consume Japan without the US standing in the gap. Do you dispute that fact? Can Japan defeat China?”
Yes the US military is great when it comes to kicking ass on lesser countries which cannot defend themselves. It is great at bombing countries that oppose the US “dollar tyranny.”
It is outstanding in fixed, set-piece battles with tanks and air power.
Where the USA will be completely defeated is when Russia launches nuclear tactical strikes at all of our overseas bases–and in a flash the USA will be a crippled, tottering giant.
Right now Russia is moving theater nuclear misslies to the border of the Ukraine (a conflict which the USA provoked BTW), and they are right now mobilizing 150,000 troops in a gigantic exercise… again on the Ukranian border.
The USA is provoking wars across the globe. The Ukraine is a good example. Syria is another–FYI, ISIS was completely trained and armed by the USA… through the criminal actions of those dead goons/thugs/mercenaries who were justifiably killed in Benghazi. FYI–they were all CIA contractors charged with locating loose weapons in Libya (after the fall of Kadaffi–also the USA’s doing), and then using the Benghazi CIA base (falsely labeled an embassy) as a transhipment point into Turkey, and then Syria… where hundreds of thousands of tons of weapons were delivered into the hands of your enemies.
The USA’s military is a paper tiger, in which nuclear holes will be punched very, very shortly by a provoked Russia (seeking to abandon the dollar tyranny) and China doing the same.
Japan knowing full well it can no longer count upon the USA’s “nuclear shield” (no matter which party is in power) has been secretly developing its own nuclear deterrent. Japan’s “dual use” (under the guise of scientific purposes) rockets can deliver a nuclear weapon anywhere on the planet. Japan possess all the plutonium it needs (see Fukushima and other sites) to quickly assemble nuclear weapons–which are already present in components deep inside hidden bases.
Japan has a long history of developing its weapons system in complete secrecy, and the same is progressing now. FYI–the battle ship Musashi was constructed in complete secrecy withing the tiny confines of Nagasaki harbor. Japan’s new main battle tank (better than the Abrahams) was also developed in secrecy among other weapons.
Japan is a huge stationary aircraft carrier–and attacks against any potential Chinese adversary could and would happen within minutes and seconds. China knows how vulnerable they are against this and would think twice about confronting Japan.
If and when a conflict breaks out with the USA/Russia/China… Japan would not be jumping into this fray automatically. Instead Japan would remain neutral, stand back and let the USA try to defend its dollar tyranny. Japan would have nothing to gain by helping the USA in such a conflict.
Very nice points Golden Oxen.
Like the US has no nuclear capability at all? Are you kidding me?
You believe Japan can defeat china and the US will be knocked off by Russia. LMAO
Who has the most powerful Military on the planet? Answer carefully because I can post the numbers, it’s not even fucking close.
Shin
I will go ahead and post some 2014 stats for you
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Shin whoever controls the sky controls the battlefield. Look at aircraft numbers.
Sensetti:
The US military is a huge paper tiger with numerous high-tech weaknesses that both Russia and China are planning to exploit. All the high-tech crap will be rendered useless in the first hours of any conflict. Also the US military failed to get a handle upon Afghanistan after over a decade of fighting there… where at the most only 5000 insurgents were opposing them. And please don’t say your guys were not “allowed to fight and win.”
Russia was there for ten years, using total Ghengis Kahn tactics, and still they had to abandon the country. And you think the USA could field armies as they did back in WWII?!
If so–you are delusional… and delusional to think that there would even be time to do such a thing.
The next major war will be completely over within 48 hours.
Foreign bases will be turned to glass.
Carrier battle fleets will be smoking, floating hulks (if they are lucky).
Major US cities/US domestic bases will be leveled (as in poof!).
Please refer to Col. Hackworth’s writings about the modern US military–where he refers to the military leaders as ‘perfumed princes.” The US military is mismanaged from top to bottom, corrupt and a paper tiger that will be blown away with quick nuclear strikes.
When the US collapses–most of the military will be trading equipment for food and shelter, as did the former Soviet army when their country collapsed. You will possess nothing and no means to deploy what little you have left…. no money honey!!
Wrap your skulls around it.
Sensetti:
Furthermore…. The US military does not exist anymore. Yes there a men and women who march around wearing and saluting the trappings of a US military. But the US military does not exist anymore.
What you all have is a “Global Mercernary/Global Police Force” which does not serve the interests or the people of the USA, and does not obey the US constitution.
They are serving the corporate interests, George Sorros and the oligarchs that are actually running the USA.
Yes, some of the low mentality dopes who join the alleged US military “believe” they are “serving their country.” There are even a good portion of them who actually don’t care–as long as they get three hots and cot daily; and this is mostly what you possess now… people who need a job and who will blindly do literally anything they are told (please also see your alphabet agencies).
In real life, the dopes in uniform are not serving the USA anymore.
Shin you are delusional, please for the love of Nanking get back on your meds.