Japan's OTHER Shoe, The Big One
Elaine Supkis reports at http://elainemeinelsupkis.typepad.com/money_matters/2008/10/elaine-meinel-6.html:
Total catastrophe for the Japanese! The YEN is STRENGTHENING! It is now, tonight, 98 to the dollar. They absolutely loathe this. This is freaking them out so badly, they are seriously debating dropping the dollar as their international fiat currency!!!! This is BIG NEWS. I suggest, it is merely a threat. They desperately want the yen to be 120 to the dollar so they can export with supreme ease. Japan To Propose Using Foreign Reserves For IMF Emergency Loans:
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TOKYO (Nikkei)--The government will call on the International Monetary Fund to set up a lending program that taps the vast foreign currency reserves of Japan and other cash-rich countries to help emerging nations reeling from domestic financial storms, The Nikkei learned Thursday.
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Japan Firms Rethink Using Dollar As Settlement Currency
TOKYO (Nikkei)--With growing expectations that the dollar will head lower against the yen over the medium to long term, Japanese companies with major overseas operations are re-examining their use of the greenback for settling business deals. **************************************************
Lackluster Demand Brings Capital Spending Plans To A Halt
TOKYO (Nikkei)--Japanese companies are slashing capital spending plans amid flagging demand both at home and abroad as the financial crisis threatens to kick the legs out from under an already limping global economy. **************************************************
Govt Mulling Preventive Safety Net For Smaller Lenders
TOKYO (Nikkei)--Alarmed by the risk of small and midsize regional financial institutions falling victim to the financial turmoil that began in the U.S., the government and the ruling parties have decided to create an emergency funding mechanism aimed at shoring up smaller lenders' balance sheets through preventive direct injections of public funds, The Nikkei learned Thursday.
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This is very significant! Many a nation is itching to drop the dollar as the world's reserve currency. The ONLY barrier to this is 'which currency do we use?' It has to be a huge economy, not small. It can't be Japan, that insular island. It has to be the money used by global traders with a huge, huge merchant marine. This leaves out the US, Britain, Spain, etc. Dead empires have all surrendered their boats and no longer ply the Seven Seas. The US has a huge military navy but it will be mothballed once we go bankrupt.
If Europe was a nation, they would take back control of world currency values. But they are falling apart, rapidly. Very rapidly. I see the EU disintegrating under the hammer blows of this international banking collapse. The yen has been forced downwards to 99 to the dollar but this is with the biggest financial powers in Japan pulling at their oars hard as possible as they struggle to weaken the yen. The IMF has never criticized this effort or tried to stop the deadly 0% lending of Japan. We will pay dearly for this deliberate blind spot.
So the struggle now will be this: will Germany and Japan stop China from being the world's TRADE currency? Both, combined, might be able to do this. But they are at odds in significant ways. Japan is trapped by its dependence on the US system and Germany is trapped by a sagging Europe. And Germany's banks are collapsing and so will Japan's banks. So this leaves China. Despite its weaknesses, it has significant strengths and the biggest is the world's most gigantic FOREX reserves.
That nation which has huge FOREX savings...RULES THE SEVEN SEAS AND ALL TRADE. This is a massive change coming rapidly as our system collapses here.
Total catastrophe for the Japanese! The YEN is STRENGTHENING! It is now, tonight, 98 to the dollar. They absolutely loathe this. This is freaking them out so badly, they are seriously debating dropping the dollar as their international fiat currency!!!! This is BIG NEWS. I suggest, it is merely a threat. They desperately want the yen to be 120 to the dollar so they can export with supreme ease. Japan To Propose Using Foreign Reserves For IMF Emergency Loans:
*******************************************************
TOKYO (Nikkei)--The government will call on the International Monetary Fund to set up a lending program that taps the vast foreign currency reserves of Japan and other cash-rich countries to help emerging nations reeling from domestic financial storms, The Nikkei learned Thursday.
*******************************************************
Japan Firms Rethink Using Dollar As Settlement Currency
TOKYO (Nikkei)--With growing expectations that the dollar will head lower against the yen over the medium to long term, Japanese companies with major overseas operations are re-examining their use of the greenback for settling business deals. **************************************************
Lackluster Demand Brings Capital Spending Plans To A Halt
TOKYO (Nikkei)--Japanese companies are slashing capital spending plans amid flagging demand both at home and abroad as the financial crisis threatens to kick the legs out from under an already limping global economy. **************************************************
Govt Mulling Preventive Safety Net For Smaller Lenders
TOKYO (Nikkei)--Alarmed by the risk of small and midsize regional financial institutions falling victim to the financial turmoil that began in the U.S., the government and the ruling parties have decided to create an emergency funding mechanism aimed at shoring up smaller lenders' balance sheets through preventive direct injections of public funds, The Nikkei learned Thursday.
**************************************************
This is very significant! Many a nation is itching to drop the dollar as the world's reserve currency. The ONLY barrier to this is 'which currency do we use?' It has to be a huge economy, not small. It can't be Japan, that insular island. It has to be the money used by global traders with a huge, huge merchant marine. This leaves out the US, Britain, Spain, etc. Dead empires have all surrendered their boats and no longer ply the Seven Seas. The US has a huge military navy but it will be mothballed once we go bankrupt.
If Europe was a nation, they would take back control of world currency values. But they are falling apart, rapidly. Very rapidly. I see the EU disintegrating under the hammer blows of this international banking collapse. The yen has been forced downwards to 99 to the dollar but this is with the biggest financial powers in Japan pulling at their oars hard as possible as they struggle to weaken the yen. The IMF has never criticized this effort or tried to stop the deadly 0% lending of Japan. We will pay dearly for this deliberate blind spot.
So the struggle now will be this: will Germany and Japan stop China from being the world's TRADE currency? Both, combined, might be able to do this. But they are at odds in significant ways. Japan is trapped by its dependence on the US system and Germany is trapped by a sagging Europe. And Germany's banks are collapsing and so will Japan's banks. So this leaves China. Despite its weaknesses, it has significant strengths and the biggest is the world's most gigantic FOREX reserves.
That nation which has huge FOREX savings...RULES THE SEVEN SEAS AND ALL TRADE. This is a massive change coming rapidly as our system collapses here.