The Japanese Financial System Is Beginning To Spin Wildly Out Of Control

By Michael, on May 27th, 2013

 

The financial system of the third largest economy on the planet is starting to come apart at the seams, and the ripple effects are going to be felt all over the globe.  Nobody knew exactly when the Japanese financial system was going to begin to implode, but pretty much everyone knew that a day of reckoning for Japan was coming eventually.  After all, the Japanese economy has been in a slump for over a decade, Japan has a debt to GDP ratio of well over 200 percent and they are spending about 50 percent of all tax revenue on debt service.  In a desperate attempt to revitalize the economy and reduce the debt burden, the Bank of Japan decided a few months ago to start pumping massive amounts of money into the economy.  At first, it seemed to be working.  Economic activity perked up and the Japanese stock market went on a tremendous run.  Unfortunately, there is also a very significant downside to pumping your economy full of money.  Investors start demanding higher returns on their money and interest rates go up.  But the Japanese government cannot afford higher interest rates.  Without super low interest rates, Japanese government finances would totally collapse.  In addition, higher interest rates in the private sector would make it much more difficult for the Japanese economy to expand.  In essence, pretty much the last thing that Japan needs right now is significantly higher interest rates, but that is exactly what the policies of the Bank of Japan are going to produce.

There is a lot of fear in Japan right now.  On Thursday, the Nikkei plunged 7.3 percent.  That was the largest single day decline in more than two years.  Then on Monday the index fell by another 3.2 percent.

And according to Business Insider, things are not looking good for Tuesday at this point…

In post-close futures trading, the Nikkei has dropped by another couple hundred points, and has dropped below 14,000.

Are we witnessing the beginning of a colossal financial meltdown by the third largest economy on the planet?  The Bank of Japan is starting to lose control, and if Japan goes down hard the crisis could spread to Europe and North America very rapidly.  The following is from a recent article by Graham Summers…

As Japan has indicated, when bonds start to plunge, it’s not good for stocks. Today the Japanese Bond market fell and the Nikkei plunged 7%. The entire market down 7%… despite the Bank of Japan funneling $19 billion into it to hold things together.

This is what it looks like when a Central Bank begins to lose control. And what’s happening in Japan today will be coming to the US in the not so distant future.

If you think the Fed is not terrified of this, think again. The Fed has pumped over $1 trillion into foreign banks, hoping to stop the mess from getting to the US. As Japan is showing us, the Fed will fail.

Investors, take note… the financial system is sending us major warnings…

If you are not already preparing for a potential market collapse, now is the time to be doing so.

And all of this money printing is absolutely crushing the Japanese yen.  Since the start of 2013, the yen has declined 16 percent against the U.S. dollar, even though the U.S. dollar is also being rapidly debased.   Just check out this chart of the yen vs. the U.S. dollar.  It is absolutely stunning…

The term “currency war” is something that you are going to hear a lot more over the next few years, and what you can see in the chart above is only the beginning.

What the Bank of Japan is doing right now is absolutely unprecedented.  It has announced that it plans to inject the equivalent of approximately $1.4 trillion into the Japanese economy in less than two years.

As Kyle Bass recently discussed, that dwarfs the quantitative easing that the Federal Reserve has been doing…

“What they’re doing represents 70% of what the Fed is doing here with an economy 1/3 the size of ours”

The big problem for Japan will come when government bond yields really start to rise.  The yield on 10 year government bonds has been creeping up over the past few months, and if they hit the 1.0% mark that will set off some major red flags.

Because Japan has a debt to GDP ratio of more than 200 percent, the only way that it can avoid a total meltdown of government finances is to have super low interest rates.  The video posted below does a great job of elaborating on this point…

It really is very simple.  If interest rates rise substantially, Japan will be done.

Investor Kyle Bass is one of those that have been warning about this for a long time…

There’s a fatalism, he says, in everyone he talks to in Japan. Their thinking is changing, and the way they talk to him about debt is changing. They already spend 50% of tax revenue on debt service.

“If rates go up, it’s game over.”

The financial problems in Cyprus and Greece are just tiny blips compared to what a major financial crisis in Japan would potentially be like.  The Japanese economy is larger than the economies of Germany and Italy combined.  If the house of cards in Japan comes tumbling down, trillions of dollars of investments all over the globe are going to be affected.

And what is happening right now in Japan should serve as a sober warning to the United States.  Like Japan, the money printing that the Federal Reserve has been doing has caused economic activity to perk up a bit and it has sent the stock market on an unprecedented run.

Unfortunately, no bubble that the Federal Reserve has ever created has been able to last forever.  At some point, we will pay a very great price for all of the debt that the U.S. government has been accumulating and all of the reckless money printing that the Fed has been engaged in.

So enjoy the calm before the storm while you still can.

It won’t last for long.

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Iran issues a warning for America after attacking spy drone

rt.com
November 9, 2012

Following confirmation from both sides that an American surveillance drone was fired at by Iranian jets, top brass with Iran’s military say the country won’t hesitate to shoot again next time a US craft enters its airspace.

“The defenders of the Islamic Republic will respond decisively to any form of encroachment by air, sea or on the ground,” Brig. Gen. Massoud Jazayeri, a senior armed forces commander, told the Fars news agency in a report published on Friday.

One day earlier, the Pentagon admitted that an unmanned aerial vehicle managed by the US Defense Department escaped unscathed from enemy fire during a routine surveillance mission 16 miles outside of Iran on November 1. Iranians do not contest that account entirely, but do dispute America’s claim in regards to where exactly the incident occurred. According to the Pentagon, the drone was targeted last week while flying far enough off of the Iranian coast that it was considered to be in international territory. While Iran has declined to offer an exact number to counter America’s claims of being 16 nautical miles off land, remarks from foreign defense officials suggest that the US could have been closer.

Comments from both Gen. Jazayeri and Brig. Gen. Ahmad Vahidi, Iran’s minister of defense, suggest that the US aircraft was within 12 miles from the Iranian coast, making it fair game for that country’s air force to open fire.

“If any foreign aircraft attempts to enter our airspace our armed forces will deal with them,” says Jazayeri, who also serves as the deputy chairman to the country’s chief of staff. Jazayeri failed to specifically imply he was discussing the drone, but made his comments hours after the Pentagon confirmed that their craft was fired at.

According to the New York Times, Iran also disputes where the shooting actually originated from. Initially, the US says two airplanes controlled by the Islamic Revolutionary Guard Corps shot at the drone. As far as Gen. Vahidi, the defense minister, is concerned, that’s incorrect. The Times writes that Vahidi believes “the two Iranian planes, which the Pentagon had identified as Russian-made Su-25 jets known as Frogfoots, belonged to the Iranian Air Force.” The paper notes that America’s insistence that the attack came from the Guard Corps pins the blame on a group “whose activities are routinely more aggressive than the conventional Air Force.”

George Little, Pentagon press secretary, told reporters on Thursday that the United States has every intention of continuing its routine spy missions from international territory outside of Iran.

“The United States has communicated to the Iranians that we will continue to conduct surveillance flights over international waters, over the Arabian Gulf, consistent with longstanding practices and our commitment to the security of the region,” Little said.

Contesting Iran’s claims of being in their own airspace, Little added, “Our aircraft was never in Iranian airspace. It was always flying in international airspace.”

In a briefing released by the Stratfor intelligence group, they suggest that the US will do little to avoid any possible future altercations like last week’s. “It should be remembered that they were shooting at an unmanned aircraft, which was created in part so that no human life would be at risk if it was shot down. That doesn’t mean the United States is casual about losing a very expensive piece of hardware. It does mean that the U.S. military is unlikely to suspend operations,” writes Stratfor. “Clearly the United States doesn’t mind making the Iranians nervous.”

The assault is believed to be the first time during a 30-year plus standoff between the two countries that Iran opened fire on an American UAV. Last year, Iran hijacked one of those unmanned drones well within their territory during what the US called a routine reconnaissance mission.

Poll: One Third of Americans Want to be Slaves

Infowars.com
November 9, 2012

The logical conclusion of a new Harris poll is that one third of Americans actually want to be slaves. We are in a lot of trouble and we’re running out of time.

Poll: Nearly One Third Of Americans Would Accept ‘TSA Body Cavity Search’ in Order to Fly – http://www.infowars.com/poll-nearly-one-third-of-americans-would-accept-tsa-b…

Poll: 35% Of Americans Would Wear “Electric Shock Bracelet” in Order to Fly – http://www.infowars.com/poll-35-of-americans-would-wear-electric-shock-bracel…

Opt Out And Film Week – http://infowars.com/optout

*RED ALERT: FEMA Making Preparations to Postpone Presidential Elections in Wake of Sandy

from Silver Doctors:

*BREAKING*
FEMA has just reported that they are preparing for Hurricane Sandy to disrupt next Tuesday’s Presidential elections.

Will Obama declare Martial Law along the US east coast due to the massive devastation and become the defacto der fuhrer by suspending elections? 

The Federal Emergency Management Agency is preparing for Hurricane Sandy to disrupt next week’s elections, agency Administrator Craig Fugate said Monday afternoon.

From Politico:

“We are anticipating that, based on the storm, there could be impacts that would linger into next week and have impacts on the federal election,” Fugate said on a conference call with reporters.

Read More @ Silver Doctors

The Top Ten Reasons to Own Silver

from Wealth Wire:

1.  Moving into True Money

Would you convert your labor into depreciating fiat paper or into an appreciating tangible asset with intrinsic value?

Silver offers the opportunity to move into true money, an actual store of value, with the potential for substantial gains in future years as its current cycle continues.  Protect yourself and your family by acquiring silver with intrinsic value and insulate yourself from the wealth destructive policies of central bankers.

In Mike Maloney’s words: “Gold and silver have revalued themselves throughout the centuries and called on fiat paper to account for itself.” (Page 202 of Guide to Investing in Gold and Silver)

If history serves as any reference, we are poised to repeat the accounting of the Depression Era and the 70′s which put precious metal holder’s on top.

2.  The Common Man’s Gold 

The acquisition of silver is much more attainable for global populations compared to gold. As silver prices continue to rise, investor’s will further shift away from real estate, stocks, and bonds.

Read More @ WealthWire.com

Why Gold and Silver will Ultimately Prove to be the Best Safe Haven Assets in the Coming Financial Storm

by Peter Cooper, Arabian Money:

Suddenly the calm is over and the storm is upon us, at least in the North West USA if not yet in financial markets. That said the trouble brewing in those markets looks about to turn into a once-in-100-year storm too.

US political instability is a frightening prospect but that looms large with a very close race for the White House and uncertainty over the composition of the legislature after the elections on November 6th. The automatic austerity of the US ‘fiscal cliff’ on January 1st is far from being automatically avoided and markets loathe this sort of uncertainty.

Read More @ ArabianMoney.com

670,000 Without Power, ConEd Says Repairs Could Take A Week

[Ed. Note: fast forward to 3:10 in the clip below to see what happens when a NYC transformer gets flooded.]

from ZeroHedge.com:

The good news is that no workers are trapped. The bad news is that between the 14th Street transformer explosion and the flooding and damage elsewhere, there are 670,000 people without power and over 230,000 of them are in Manhattan.

*CON ED SAYS UNDERGROUND SUBSTATIONS COULD BE UP IN 3 TO 4 DAYS
*CON ED SAYS IT WILL TAKE LONGER TO REPAIR ABOVE GROUND STATIONS
*CON ED SAYS IT COULD BE UP TO A WEEK FOR POWER RESTORATION
*LARGEST STORM RELATED OUTAGE IN CON ED HISTORY, MIKSAD SAYS

There will be Panic into Gold: Doug Casey

from KitcoNews:

 

Super Storm Sandy Updates

from Off Grid Survival:

As Hurricane Sandy Prepares to make landfall here are the latest updates:

6:00 p.m. EST: Over 1.5 million homes now without power across the east coast.

4:00 p.m. EST:

• 500,000 without power as storm moves closer to land.
• Virginia Beach, VA now reporting over 9.00″of rain.

2:00 p.m. EST: For all the people who wonder why we tell you to be prepared, check out some of these pictures that people are posting on Twitter and then ask yourself if this is the situation you want to find yourself in during an emergency…..

12:35 p.m. EST:

• Virginia Beach, VA has already reported over 8″ of rain from Hurricane Sandy
• Delaware Governor warns “People should be prepared to be without power for a week or more.”

12:25 p.m. EST: Surge Flooding starting in Atlantic City ahead of Hurricane Sandy

11:45 a.m. EST: Runways starting to flood at both LaGuardia Airport and JFK

10:45 a.m. EST: With the storm still a couple hundred miles away, East Haven, Connecticut is already seeing significant flooding.

10:45 a.m. EST: Hudson River already starting to fill up with surge waters.

 

Read More @ OffGridSurvival.com

10/29 @ 1pm EST Obama Statement – Hurricane Sandy

from idahopicker:

 

GMO Foods: Science, PR, and Public Backlash

from GlobalResearchTV:

 

In the face of yet more scientific evidence of the adverse health effects of genetically modified foods, country after country is working to ban, limit or restrict the cultivation and testing of GM crops. But as the biotech giants gear up the PR war against their opponents, the question of what people can do to avoid GMO foods is becoming more important than ever.

Gangs Plan Hurricane Looting Spree Via Twitter

New York National Guard to “protect against looting”

by Paul Joseph Watson, Prison Planet:

 

Scores of Twitter users have flooded the social networking site announcing their plans to go on looting sprees once Hurricane Sandy makes landfall, as the New York National Guard announced it would put troops on duty in Long Island to prevent such activity.

1,175 New York National Guard troops have been mobilized to “provide command and control and logistical support” in New York City, Long Island, the Hudson Valley and the Southern Tier. According to NBC New York, the troops will also be on hand to “protect against looting.”

They might well be needed given the fact that a deluge of Twitter users are using the website to appeal to others to join them in exploiting the chaos generated by the superstorm to ransack stores.

Read More @ PrisonPlanet.com

Micro-Drones Combined With DNA Hacking Could Create A Very Scary Future

by Robert Johnson, BusinessInsider:

 

Sightings of insect-sized micro drones have been occurring for years, but combined with the direction of genome sequencing outlined in this Atlantic piece — the pair make for a futuristic and potentially deadly mix.

 

Even back in 2007, when Vanessa Alarcon was a college student attending an anti-war protest in Washington, D.C. she heard someone shout, “Oh my God, look at those.”

“I look up and I’m like, ‘What the hell is that?’” she told The Washington Post. “They looked like dragonflies or little helicopters. But I mean, those are not insects,” she continued.

A lawyer there at the time confirmed they looked like dragonflies, but that they “definitely weren’t insects”.

Read More @ BusinessInsider.com

The $100 Billion Storm: 17 Things You Should Know About Hurricane Sandy

from The Economic Collapse Blog:

Meteorologists are warning that Hurricane Sandy could potentially be the worst storm to hit the east coast of the United States in 100 years. Do you remember “the perfect storm” back in 1991? That storm was so bad that Hollywood made a blockbuster movie starring George Clooney about it. Well, this storm is going to be much worse. When I first heard about Hurricane Sandy, I didn’t make that much of it. I figured that the east coast would get some wind and some rain and that they would whine about it a bit but that everything would be just fine. But then I started looking into this storm a bit more. It turns out that this storm is even larger than Hurricane Katrina was. The National Oceanic and Atmospheric Administration has categorized the destructive potential of this storm to be 5.8 on a scale that goes from 0 to 6. So don’t be fooled when you hear that this is only a “category 1 storm” or that the maximum winds will only be around 80 MPH. It is the unprecedented size of this storm and the mind boggling storm surges that it is producing that truly make it dangerous. It is being reported that Hurricane Sandy is more than 1,000 miles across from one end to the other. Meteorologists have never seen anything quite like this before, and we are most definitely in unprecedented territory. One meteorologist is already projecting that this megastorm could cause 100 billion dollars in damage, but the true amount of devastation will likely not be fully known for weeks. If you live in the northeast part of the United States, you definitely want to buckle up because you are about to get absolutely hammered.

Read More @ TheEconomicCollpaseBlog.com

How To Prepare For A Hurricane? Some Lessons That Preppers Can Learn From Hurricane Sandy

from End of the American Dream:

 

 

If you are just starting to prepare for Hurricane Sandy, the truth is that you are already too late. Most of the essential supplies have already been stripped from store shelves. If you don’t have an emergency generator, you might be without power for quite some time. It is being estimated that up to 10 million people could lose power during this storm, and it is already being projected that some people may end up being without power for a week or more in the worst hit areas. Hopefully you have already boarded up your windows. They can be broken very easily during a hurricane, and you certainly don’t want to be dealing with a broken window during the worst moments of the storm. Those that have prepared ahead of time are likely to be in good shape to ride this storm out, but sadly the reality is that most people have not prepared ahead of time. Every time a major storm or natural disaster strikes, we always see the same thing happen. Hordes of half-crazed people storm into the stores hoping to find the things that they need, and many of them end up leaving disappointed because what they were looking for has already sold out. Thankfully, most of our “disasters” have typically only lasted a few days at most, but what will happen someday if a disaster ends up being permanent? What if there is a disaster that is so bad someday that things never return to “normal”? Would you and your family be able to survive on only the preparations that you have made so far?

Read More @ EndoftheAmericanDream.com

SANDY UPDATE – Bloomberg Orders Evacuation Of Coastal Areas

from TruthTube451:

Mobile Phones Can Cause Brain Tumours, Court Rules

Emma Little and Michael Day
Telegraph.co.uk
October 19, 2012

Italian businessman Innocente Marcolini, 60, fell ill after using a handset at work for up to six hours every day for 12 years.

Now Italy’s Supreme Court in Rome has blamed his phone. Experts have predicted a flood of legal actions from victims.

[…] And yesterday his country’s Supreme Court stated there was a “causal link” between his heavy phone use and the growth.

Read full article

Obama and Romney: War No Matter Who Wins Election

Kurt Nimmo
Infowars.com
October 21, 2012

Once again emphasizing there is no fundamental difference between Obama and Romney when it comes to attacking Iran, the American Jewish Committee has published the answers to a questionnaire sent to the candidates.

From the Jewish Telegraphic Agency website:

“I am prepared to use all elements of American power” to prevent Iran from obtaining a nuclear weapon, Obama said in the questionnaires released Oct. 18 by the AJC, “including a political effort to further isolate Iran, a diplomatic effort to sustain our coalition, an economic effort that has imposed crippling sanctions, and a military effort to be prepared for any contingency.”

Romney’s response was nearly identical:

“I will press for ever tightening sanctions on the regime, acting multilaterally where we can and unilaterally where we must, and leave no doubt in the mind of the regime’s leaders that the military option remains on the table.”

Romney tried to make political points by sucking up to Israel and the Israeli lobby in the United States: “Unlike President Obama, I understand that distancing the U.S. from Israel doesn’t earn us credibility in the Arab world or bring peace closer,” he said. “Instead, it encourages Palestinians to hold out and wait for Washington to deliver more Israeli concessions.”

Romney said he plans to create “regional directors” who “will possess unified budgetary and policy authority.”

The JTA’s response to this development: “With such powers concentrated in an individual, pro-Israel groups would likely closely watch and want to influence whomever a Romney administration would name to the Middle East post.”

In fact, pro-Israel neocons already dictate Romney’s Middle East foreign policy. Fifteen of the 22 members of Romney’s foreign policy team were policy advisers under Bush, and six of them are former members of PNAC, Joseph Sarkisian points out.

Neocons from the American Enterprise Institute, the Brookings Institute, and the Hudson Institute dominate Romney’s advisors. “The American-Israeli Public Affairs Committee (AIPAC) thinks highly of these policy advisers, who are all ardent supporters of the Israeli desire to end Iran’s nuclear program with force if necessary,” writes Sarkisian.

“Just like in Iraq, there is no verifiable proof of WMD in Iran, yet once again the same group of people want to use the same methods to start a similar war for the interests of the few, with no regard for the consequences,” he concludes.

Poll results are, of course, highly misleading, but if we are to believe the latest results Romney and Obama are locked in a dead heat sixteen days out from the election.

Establishment fount Forbes predicts that if Obama gets re-elected, Israel will attack Iran in January, a move that will undoubtedly be supported by the United States.

Despite Romney’s coterie of neocons, Democrat Chuck Schumer believes Obama is more likely to attack Iran than his opponent. “I’ll tell you this on Iran, and I’ve said this to a couple of Romney supporters who agree, that if the sanctions fail, and military action is warranted, a re-elected President Obama is far more likely to launch that kind of military action, probably in concert with Israel, than would Mitt Romney,” Schumer told CNN in September.

Following Obama’s lackadaisical performance during the first debate, his administration “leaked” a plan for striking Iran’s nuclear facilities. CFR member and visiting scholar at the Carnegie Endowment for International Peace, David Rothkopf, wrote in Foreign Policy earlier this month that the White House and Israeli officials “assert that the two sides behind the scenes have come closer together in their views [regarding Iran] in recent days.”

Rothkopf quoted a “source close to the discussions” as saying that a surgical strike aimed at Iran’s enrichment facilities “might take only ‘a couple of hours’” at best and would be conducted by air using bombers and drones.

Despite the outcome of the election, a strike on Iran – limited, surgical or otherwise – will occur within the next few months, if not weeks.

Boys — like girls — hitting puberty earlier

Jacque Wilson
cnn.com
October 20, 2012

Boys in the United States are starting puberty earlier than ever, according to a new study publishing in the November issue of the journal Pediatrics.

In the study, lead author Marcia Herman-Giddens from the University of North Carolina’s School of Public Health and her colleagues show that boys are starting to sexually develop six months to two years earlier than medical textbooks say is standard.

This research has been a long time coming. Herman-Giddens first documented early puberty in girls in 1997, and several studies have since backed up those findings.

Read more

We Will Be Returning!

Good day followers.

I will be returning. We believe this website will be hosted by word press at wrc559.wordpress.com

Unfortunately we have decided to go back to a free site as no support was given on the paid site so I shut down a lot of our extra information we provided and video.
But however we will be back and just updating important news that we know you want to hear. See you soon!

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