The Japanese Economy has been struggling for more than two decades, but now it appears their biggest economic troubles are still ahead of them. A financial insider has leaked information regarding a decision made by the world’s biggest multi-national banks to give up on Japan and allow their economy to collapse so they can reset it and conform it to a more desirable economic model.
The situation in Japan has global implications, especially because Japan has been the second largest buyer of United States treasuries. So there is concern that an economic collapse in Japan could cause a world-wide economic collapse.
This top financial insider was interviewed on the Hagmann & Hagmann radio program on January 11 2013 with host Doug Hagmann and co-host Steve Quayle. In the interview, the insider uses the alias name “V.” V shared information regarding the coming financial reset that is not receiving coverage in the mainstream news media.
The week before this interview was conducted, V was in a meeting with some of the top investment bankers in the world. In that meeting he heard them say they are done with Japan. These people play with the world economies like most people would play with monopoly money. These are the movers and shakers who have made a decision to basically sink Japan and write them off financially.
The following is a transcript of V’s explanation of what the multinational banks have decided to do with Japan and their reasons for doing it:
You have your investors. You have your multinational banks. The multinational banks, when they look at the economic climate, these are the princes of fiat. These are the men who understand how fiat currency works and how the banking system works. When they began to look at the Japanese economic model they saw it was beginning to fissure, to crack. Right now, for all intents and purposes, when you really look at it, it is the most fragile economy in Asia. It is an economy that is the most export driven. It has to get its products out there. A lot of its food staples and essential resources that are needed for everyday life are imported. So these are the things that are happening.
So when the economists at these multinational banks have taken a look at the model that is in Japan they have decided that, you know what, Japan just does not fit the global economic model that is really emerging. That global economic model is there is a strict Keynesian model, and because Japan does not fit that model the thing that has been decided is that they are going to let Japan collapse.
If you look at all of the financial moves and all of the financial decisions that have been made in Japan, those moves and those decisions are primarily designed in order to overheat the economy and bring it to a hyper inflationary collapse. Then reset it into whatever plans the planners have for Japan going forward.
That is a huge thing because Japan at one point was the second largest buyer of United States debt. I am going to show you how this ties into the dollar. Now they are nowhere to be found. At the last couple of United States bond auctions Japan has not even shown up. Neither has the Chinese because the Chinese are trying to get away from the dollar as much as possible. They are going into precious metals.
The Japanese right now are basically filling the boat. You have a boat and you’re taking in water and you start bailing. That is what they are doing with monetizing. It was very convenient for the Americans to have the Japanese buy the debt and to have the Chinese buy the debt and to have the Saudi’s and the Russians buy the US debt but today there are less and less buyers around. So this is a huge problem for the American treasuries.
The Japanese economy has been written off and they are in a lot of trouble. I don’t know what the Japanese government will do. There is a lot of volatility there politically and that volatility does not lend to investment.
To provide us with a better understanding of the situation in Japan, V provided the following historical summary beginning with the rebuilding of their economy after World War II:
The thing here that we have to understand is the background of Japan and where it has come from and where it is going. After the end of World War II Japan was in ruins. We all know that. They began to copy a western form of banking, which is another way of saying it is a Fiat-based system kind of like what we are seeing in the rest of the Western world today. So we all remember, especially if you have any sort of financial acumen, or you follow the news, Japan went through a period of incredible growth and then they went through a period in the late 1980s all the way through the 1990s, which was known as the lost decade.
Why was it a lost decade? Simply put, the country was running into massive financial problems. It was borrowing more than it could produce. What occurred was you had Japan putting itself in a very precarious situation and policy, and that policy was we are going to deflate and devalue our currency to make our exports as strong as possible on the international market. Now when they did that, it is a wonderful great idea, but eventually they started running into problems because of evaluation of currency.
The problem occurs when they started printing more money, when they started devaluing their currency to get those export markets going, no one foresaw what would occur with Japan, which was mainly the Fukushima accident. There were many experts that talked about it but people, just like Westerners, the Japanese people used to be very long sighted. They used to plan things in 10 to 20 year increments, but somewhere along the line when they adopted a western form of banking they lost that long-term insight. The Chinese still have that insight for the most part but the Japanese don’t.
So when the Fukushima incident occurred, it really turned a bad situation even worse. Japan was still in the lost decade, still in a bad economic situation, then we enter into the financial collapse of 2008 and going into 2008 you had Japan, which was heavily leveraged on Eurobonds. They were heavily leveraged on US dollars. They were the second largest buyer of United States treasuries right behind the Chinese. So the financial collapse of 2008 occurs.
Going forward from there we had the Fukushima incident of 2011. Now that was a clincher. The Japanese insurance companies had no funds in order to cover much of the insurance claims that were coming out of Fukushima. Coupled with the fact that the Bank of Japan has been printing money, they have been QE infinity for decades as well. Well, what that did was basically put a squeeze on the economy even further in Japan. So what has occurred is the economy is in a huge problem. So now they have to float more bonds. Now the way you have to float more bonds is you have to have a bond buyer. Japan is doing exactly what the United States Federal Reserve is doing. They have become the bond buyer. They are starting to monetize their own debt. So in order to monetize their own debt they get the Bank of Japan to print more money. Print more money and buy their own debt to further devalue their own currency. Why? Because their currency was starting to appreciate because the dollar was starting to devalue itself. And the euro was decoupling as well. So in order to prevent that from happening and to prevent them from further destroying their own economy, the Japanese have decided to monetize their own debt. So when they decided to do that, pretty much the death nail is starting to happen. There is no stopping this train from running itself off the cliff.
So what we are seeing right now is, basically the information that was given to me, is they have pretty much written off Japan. The Japanese are done economically. The biggest reason, one of the biggest things that the major investment banks don’t want to talk about, they don’t want to talk about the fact that there is an issue with the environment. And we all know what that is, that is the radiation levels are still presenting environmental issues in Japan. There are massive financial fissures all over the Japanese economic system. So because of this, going into 2013, they (the major investment banks) are pretty much leaving Japan to die, sad to say.
So Japan will be in a situation where they are going to print money into oblivion. It’s economy is severely overheated. There is no more savings. You see, the way they floated bonds back in the so-called lost decade and how they prevented a collapse back then in the 1990s was that they borrowed a significant amount of money from their own citizens. That money is now tapped out.
The Japanese people are savers. They are not like the average Americans who are two or three paychecks away from being homeless. So they have tapped that market out, and going forward they have pretty much written Japan off economically. Because the Japanese do understand this you are now seeing some sort of a fervor because the model, and this is the biggest problem we are having economically today is the model that is being followed by the Japanese and is what is being followed right now by the Americans to a large extent and by the Europeans to a significant extent, and that is the keynesian model. When you study the keynesian model you see that it always ends with war. Every time a keynesian model is set up it always ends in a war or some kind of conflict or economic collapse or depression.
So now we are seeing Japan is in the situation that it is in. We see that they are now all of a sudden rattling some sabers about some islands that they have in dispute with the Chinese. So these things are occurring in order so that they can somehow rile up the populace and create patriotism to get some sort of patriotic fervor going within Japan. And the craziest thing about what the Japanese are doing is that China is Japan’s biggest trading partner. So this is the insanity of it all. So why are they doing this? It is pure insanity.
According to the information that I have gleaned, Japan is going to be written off economically. We are going to see a downward collapse of Japan. Japan is like England. They are the England of Asia. I mean that economically because I am sure that most of you have heard what fractional reserve banking is. If you don’t know, I will give you a little Cliff Notes version of that, and that is simply that if I come to the bank I put $1000 in and the bank takes that thousand dollars and by law they can loan it out nine times in the hope that you and everybody else that the bank has loaned out that thousand dollars nine times to Does not come back to the bank and immediately ask for their funds to be withdrawn. That is called a run on the bank. The English model is there are no fractional reserves because they have fractional reserve to infinity. They’ll take the thousand dollars and loan it out 100,000 times. Japan is pretty much following that same model. It is a recipe for disaster.
V’s comments are consistent with comments from financial advisor and talk-show host Max Keiser, who made the following comments in an interview on Infowars.com this week:
“What is the truth of the reality here is that they are still allowing the Japanese yen to collapse more than any other currency because it provides the cheapest source of funds for these governments to engage in buying each others sovereign debt.”
Many warning signs have arisen recently regarding tough times ahead for Japan and potentially the global economy. Investors can take advantage of the collapse of the Yen by trading it against the U.S. dollar in the worldwide Forex market. Just since November 2012 the Yen has lost significant value. It went from 78 Yen to the dollar in November to 93 Yen to the dollar today. If these insiders are correct, the Yen devaluation will continue in the coming weeks and months.
Author: James Bailey
James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.
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