Government Bonds (JGBs) and that can't be a good thing. Panic tends inevitably to lead to crisis, and goodness knows, global financial markets could hardly deal with another crisis without contagion on a massive scale. – Counterpunch
Dominant Social Theme: Turbulence? What turbulence?
Free-Market Analysis: Japan's market turbulence may only be a glitch in a larger globalist plan to even out countries and currencies preparatory to installing a global currency.
We need to look at the very largest picture to understand what may be going on. So let's try.
Coincidentally or not, Europe and the US are in quasi-depressions and Canada's and Australia's economies are heading down to join Britain – now struggling with a "triple dip."
Meanwhile, the BRIC economies are continually stimulated by loose monetary policy and seemingly unending industrial demand. The same can be said for currencies. The BRIC currencies are ascendant – especially the yuan – while the dollar, euro and pound languish. And don't forget gold. Gold has moved down hard.
So what can we make of all this? One theory – certainly one organized along the lines of directed history – is that these seemingly random events are interconnected and that certain economies and countries are being deliberately raised up while others are being pressed down.
The goal? To create an international basket of currencies that includes gold as well as certain BRIC currencies, the dollar, the euro and perhaps the pound.
First even out economies and currencies and then begin the merger. The generalized stimulation of Western economies (along with the BRICS) could be explained by the fear among globalists that they have gone too far and that if things deteriorate further civil unrest could turn into outright rebellion.
Recalibrating world economies is a delicate balancing act, made even harder, as we have often pointed out, by what we call the Internet Reformation.
Or course, the above likely sounds absurd on the surface because of the breadth and depth of its ambitions. But are there the tools at hand to leverage such a feat?
In fact, perhaps so. What are needed are monetary levelers and there are now 150 central banks around world, up from a handful at the beginning of the 20th century. This is a telling statistic.
It is simply a fact that at the highest reaches, in concert with the Bank for International Settlements in Switzerland that coordinates bank policy in hyper-secrecy, evident and obvious plans to move toward a consolidated international currency are being actuated.
This is not a controversial observation. The great Fabian economist John Maynard Keynes dreamt of such a currency back in the 1940s. It has been a primary goal of socialism and internationalism for more than a century.
And now perhaps the goal is being realized.
Grant that economics policies are indeed being coordinated out of Switzerland and that central banking executives congregate in the elegant halls and meeting rooms of the BIS on a regular basis. Grant, too, as we have often reported, that top Eurocrats (we've reported on this in detail) are on record as calling for an economic crisis to create the opportunity to deepen the EU's political union.
These, then, constitute two elements in a recipe for global change: the willingness to coordinate economic policy in order to cause financial crises and then to resolve them via governmental and monetary reconfigurations. The methods are clear and the resources – via central banking money manipulation – are evident and obvious.
Japan, as one of the world's largest economies, will play a major part in whatever top central bankers are planning. Perhaps the yen will be part of the global currency basket, and perhaps in order to implement such a transition, Japan's economy needs to be reinvigorated as well.
Maybe, in fact, this explains the sudden push of Japanese Abenomics. This also may explain the turbulence of the current Japanese economy as such macro-events, as the raising up of an entire economy via monetary stimulation is always a risky and volatile process. Here's more:
Reuters commentary Japanese markets were whipsawed for a second time in three days while the yields on Japan Government Bonds (JGB) inched higher. The benchmark Nikkei Index shed 469 points in Monday's session lopping another 3 percent off Thursday's 7.3 percent plunge. Skittish investors are exiting stocks fearing that Abenomics and the Bank of Japan's (BoJ) efforts to reflate equities prices and boost inflation will fail.
An unexpected selloff in JGBs pushed the yield on 10-year debt to 1 percent last week increasing the likelihood of higher interest rates which will leave bank balance sheets and JGB-heavy pension funds deep in the red. Investor confidence in the BoJ's governor Haruhiko Kuroda has begun to ebb as roiled markets and rising yields add to financial instability and deepening crisis.
… Hayman Advisors Kyle Bass summed up the problem facing the BoJ like this: "Abe and the BOJ face what I call the 'rational investor paradox. If Japanese Government Bonds (JGB) investors begin to believe that Abenomics will be successful, they will 'rationally' sell JGBs to buy foreign bonds or equities." In other words, if bondholders believe that Kuroda will hit his inflation target of 2 percent, then they will have to jettison their lowyielding JGBs or suffer losses.
The uncertainty surrounding long-term interest rates is what's causing the gyrations in the stock market and the growing sense of unease. And while the Kuroda is currently purchasing over 70 percent of new issuance, the selloff in the quadrillion dollar JGB market has overwhelmed his efforts to keep rates low. Last Friday, a clearly-shaken Kuroda tried to placate jittery investors saying that "the BOJ will flexibly conduct operations by adjusting frequency, pace and target."
He added, "It is natural for long-term yields to rise as the economic recovery and inflation picks up." Market-watchers took this simple statement of fact as a sign that Kuroda was no longer fully-committed to keeping rates low. This is what led to Monday's stock rout. Liberal economists in the US have praised Prime Minister Shinzo Abe's efforts at ending Japan's two decades of deflation, particularly the BoJ's unprecedented Quantitative and Qualitative Easing (QQE) program which will double the base money supply in two years and which purchases financial assets (J-REITs, ETFs) other than government debt.
The article mentions that the Japanese stimulation will benefit the corporate world at the expense of average middle class Japanese who will see their earnings and savings debased by the torrent of yen that the Japanese central bank is now printing.
This sort of observation is a predictable one, as a globalist economy is bound to be built on the savings and earnings of Western and Asian middle classes. The rich and powerful apparently have few qualms about the inevitable suffering that will take place as internationalism evolves.
Note, too, the scale and audacity of this program. It is breathtaking – almost incomprehensible – in its arrogance and ambition.
And yet, if it exists, it will not be reported on by the mainstream (controlled) media until the project is about to be realized. And even then it will be treated as serendipity.
We think we know how it might play out. Sooner or later, as economies and currencies are rationalized, some enterprising economist will likely notice that this is taking place and begin to promote the idea of a single currency.
This economist, noting the efficiencies and reduced arbitrage of a single global currency, will receive a "Nobel" and suddenly the mainstream media will be filled with endorsements of such an idea.
It would seem to be simply an evolution of the marketplace and yet perhaps it will actually be the fulfillment of a dream!
Will such a scenario actually take place? Is it even possible? Count us as skeptics. And yet, within the context of our skepticism, we think such a plan is perhaps ongoing.
Its eventual failure, while certainly predictable, could be agonizingly painful and bloody.