QE’s Creeping Communism

Central banks and respective governments are running out of magical tricks to pull out of the hat.

As already done in America [government takeover of the banking industry (government bailout) and health industry (“Obamacare”)], the next step is the nationalization of industries in other developed nations like we’re seeing now in Japan.

This paves the way for communist rule by stealth, but most people don’t see this so long as the shopping malls are remain open and they can still drink their beer while watching the NFL.

 

Despite its much longer experience with monetary stimulus, Japan’s economy remains listless and has continuously flirted with recession. In spite of this failure, Japanese leaders, especially Prime Minister Shinzo Abe (and his ally at the Bank of Japan (BoJ), Haruhiko Kuroda), have recently doubled down on all prior bets. This has meant that the Japanese stimulus is now taking on some ominous dimensions that have yet to be seen here in the U.S. In particular, the Bank of Japan is considering using its Quantitative Easing budget to buy large quantities of shares of publicly traded Japanese corporations.So for those who remain in doubt, Japan is telling us where this giant monetary experiment leads to: Debt, stagnation and nationalization of industry. This is not a destination that any of us, with the possible exception of Bernie Sanders, should be happy about.

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Japan is about to dive off its own version of the fiscal cliff

If you thought the US’s fiscal cliff—that combination of rising taxes and slashed fiscal spending that scared investors and shook the economy in December 2012—was bad, have a gander at what Japan’s prime minister, Shinzo Abe, faces. He entered the job with a mandate to grow the economy and escape deflation. But before Abe took over, the government passed a tax hike on consumption to show that the Japanese government is serious about shrinking its ¥1 quadrillion ($10.3 trillion) in public debt. Continue reading

Japanese Defense — Going Nuclear?

Recent reports about the imminence of the opening of a massive reprocessing facility in Rokkasho, northern Honshu, have analysts wondering about the Japanese government’s intent for its use. The real concern is that the plant could produce weapons-grade plutonium for manufacturing nuclear weapons. Continue reading

China reacts angrily to Japanese plan to buy disputed islands

China warned on Wednesday that it would take all “necessary measures” to thwart a Japanese plan to buy a disputed chain of islands.

The stakes were escalated by Shintaro Ishihara, the rabble-rousing governor of Tokyo, who suggested that the Japanese government buy three of the islands from the Kurihura family, who claim the Japanese deeds. Japan should stand up to China, he intoned, or face becoming a “second Tibet”.

As Japanese newspapers reported the purchase plan was close to fruition, with a Y2.05 billion (£16.4 million) price agreed on Wednesday, the Chinese government voiced its rage.

Full article: China reacts angrily to Japanese plan to buy disputed islands (The Telegraph)

Japan’s pro-nuclear weapon voices grow louder amid debate

TOKYO — A contentious debate over nuclear power in Japan is also bringing another question out of the shadows: Should Japan keep open the possibility of making nuclear weapons—even if only as an option?

It may seem surprising in the only country ever devastated by atomic bombs, particularly as it marks the 67th anniversary of the bombings of Hiroshima on Aug 6 and Nagasaki three days later. The Japanese government officially renounces nuclear weapons, and the vast majority of citizens oppose them.

But as Japan weighs whether to phase out nuclear power, some conservatives, including some influential politicians and thinkers, are becoming more vocal about their belief that Japan should have at least the ability to make nuclear weapons.

“Having nuclear plants shows to other nations that Japan can make nuclear weapons,” former Defense Minister Shigeru Ishiba, now an opposition lawmaker, told The Associated Press.

Ishiba stressed that Japan isn’t about to make nuclear weapons. But, he said, with nearby North Korea suspected of working on them, Japan needs to assert itself and say it can also make them—but is choosing not to.

Most proponents don’t say, at least not publicly, that Japan should have nuclear weapons. Rather, they argue that just the ability to make them acts as a deterrent and gives Japan more diplomatic clout.

The issue dates back to the 1960s. Historical documents released in the past two years show that the idea of a nuclear-armed Japan was long talked about behind-the-scenes, despite repeated denials by the government.

Full article: Japan’s pro-nuclear weapon voices grow louder amid debate (Japan Today)