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China and Japan hyperinflation
This Blog is about the investment environment that I define as Geopolitics and Economics. The Geopolitics of Japan affects the investment environment of those in the United States. How so? Let’s look. First, the Japanese government has just announced that they will be in lockstep with Bernanke’s FED. Specifically the Bank of Japan will support aggressive inflationary policies by buying long-term ten-year bonds in larger amounts. Historically the Japanese government normally buys Bonds to the value in circulation. The effect will be that the government of Japan is going to have a quantitative easing program that will create money and then have the government buy the bonds just as the FED does – the FED program is $85 billion/month. This inflationary policy means that when the final financial crash comes, Japan will be included in the hyper inflationary collapse. You will not be able to hide money in Japan. Second, the Japanese economy is in downside movement. For instance automotive sales are down by 1.5 million units or roughly 9.4%. Automotive sales are one of the primary components of the GDP of Japan. Third, Chinese companies have announced earnings that are less than predicted. I note that as a general rule, China tends to play with the numbers to make them look better – – just like our government – – so it actually may be worse than reported. XiJiaping has shown that he will continue to support North Korea in its militaristic stance. This is evidenced by his firing of Deng Yuwen for writing an article in a British newspapers calling for China to stop supporting North Korea. The conclusion is that Japan is in the same sluggish economic state as the U.S. and they are following the same economic policies that are a march toward collapse. China follows its own interests that may or may not be in the direction of the U.S.
Geopolitics and Hyperinflation – China and Japan hyperinflation (by joe hawranek)