HOW FINANCIAL TROUBLES IN JAPAN EFFECT US, SEPT. 24, 2022

WHY DO THE FINANCIAL PROBLEMS OF JAPAN AFFECT ME BECAUSE I DO NOT LIVE IN JAPAN ? 

HERE IS WHY IT MATTERS: 

 1 HERE IS A KEY REASON WHY THE JAPANESE GOVERNMENT IS IN DEEP DEEP TROUBLE AS JAPAN'S CURRENCY COLLAPSE ACCELERATES: AS BLOOMBERG NOTES, THE BANK OF JAPAN ONCE AGAIN IS THE WORLD’S LARGEST CENTRAL BANK IN GDP RISK TERMS. THE GROWING RISKS TO FINANCIAL STABILITY WILL PUT FURTHER PRESSURE ON THE BANK TO EXIT ITS ULTRA-LOOSE MONETARY POLICY. THE MANTLE OF THE LARGEST CENTRAL-BANK BALANCE SHEET WAS HELD BY THE SWISS NATIONAL BANK SINCE AROUND 2007, BUT IN RECENT MONTHS THE SNB HAS BEEN SELLING ASSETS TO SUPPORT THE FRANC IN A BID TO LIMIT INFLATION. THE SIZE OF THE BOJ’S BALANCE SHEET, AT 135% OF GDP (THE REAL-TIME FIGURE WILL BE HIGHER DUE TO RECENT BOJ ASSET BUYING) HIGHLIGHTS THE SCALE OF THE MOUNTING PROBLEM GIVEN THE RISKS TO FINANCIAL STABILITY. 

 2 THE COLLAPSE OF THE JAPANESE YEN IS PUTTING HUGE PRESSURE ON THE

FED BECAUSE JAPAN IS ONE OF THE LARGEST BUYERS OF T-BILLS WHICH KEEP THE US GOVERNMENT RUNNING. (THIS HAS A DIRECT EFFECT ON YOU BECAUSE THE WAYS THAT NON USA CURRENCIES MOVE DO AFFECT THEIR WILLINGNESS TO BUY USA DEBT “T-BILLS” WHICH AFFECTS HOW THE USA ANNUAL BUDGET IS AFFECTED) 3 THE FALLING YEN WILL MAKE GOODS AND FOOD MORE EXPENSIVE IN JAPAN WHICH IS A HUGE BECAUSE JAPAN IS A BIG TRADING PARTNER WITH THE USA AND THE RESULT WILL BE THAT JAPANESE GOODS AND SERVICES WILL COST MORE MONEY ESPECIALLY IF THE YEN WOULD EVER RECOVER THE PRICE INCREASES WOULD STILL REMAIN. 

 4 BECAUSE MONEY HAS BEEN SO “LOOSE” IN JAPAN, MANY MARGINAL LOANS HAVE BEEN MADE TO TRY AND KEEP COMPANIES AFLOAT OR TO RAISE STOCK VALUES ABOVE RATIONAL LEVELS WHICH PRESENTS A MORE DESTRUCTIVE SITUATION WHEN THE CURRENCY FAILS AND NON JAPANESE INVESTORS ARE LEFT WITH HUGE LOSSES AND NOTHING TO BACK THE LOSSES.

 5 IT HAS BEEN SAID BY SEVERAL PEOPLE AND IS COMING TO PASS THAT A FAILURE IN GERMANY AND FOLLOWED BY A FAILURE IN JAPAN IS THE HUGE POINTER TO A GLOBAL FAILURE. THIS IS IN FACT TRUE BECAUSE JAPAN AND GERMANY ARE SUPPLIERS OF SPECIALTY RAW MATERIALS USED BY OTHER COMPANIES TO MAKE THEIR PRODUCTS. THESE HUGE COMPANIES ARE AT RISK IS BECAUSE OF THE FOLLOWING COMMON REASONS:

5.1 THEY HAVE DEPENDED ON CHEAP LOANS IN GERMANY AND JAPAN TO BE ABLE TO FUND BIGGER PROJECTS WITH LOWER RISK AND PROFIT MORE IN THE GLOBAL MARKETS. 

5.2 ALSO BECAUSE THESE COMPANIES ARE HIGHLY ENERGY AND HYDROCARBON DEPENDENT, THEY HAVE DEPENDED ON CHEAP ENERGY AND HYDROCARBONS (THEIR RAW MATERIALS) FROM RUSSIA FOR THE PAST 30+ YEARS TO STAY AHEAD OF OTHER COMPETITORS WORLD WIDE.

6 IN THE PAST COUPLE OF WEEKS THESE HUGE COMPANIES IN BOTH JAPAN AND GERMANY HAVE BLUNTLY TOLD THE GOVERNMENTS THAT HUNDREDS OF THOUSANDS OF JOBS ARE AT RISK AND BILLIONS IN TAX INCOME TO THE COUNTRIES. 

7 JAPAN EXPORTED TO UNITED STATES A TOTAL OF US $135.98 BILLION DURING 2021. THE LARGEST EXPORTS OF JAPAN TO THE USA BY FAR ARE THE FOLLOWING THINGS: 

7.1 CONSUMER GOODS: 

7.1.1 AUTOMOBILES AND LIGHT TRUCKS AND PARTS FOR THEM. 

7.1.2 ELECTRONIC GOODS SUCH AS RADIOS, TV’S, STEREO'S. 

7.1.3 CAMERAS AND VIDEO EQUIPMENT. 

7.1.4 MEDICINES 

7.2 MEDICAL RELATED ITEMS NOT COUNTING MEDICINES 

7.2.1 MEDICAL MACHINES SUCH AS CAT SCANNERS AND MRI MACHINES 

7.2.2 OTHER MEDICAL SUPPLIES SUCH AS BANDAGES WOUND CARE AND A LARGE LIST OF THINGS 

7.3 INDUSTRIAL ITEMS: 

7.4 LARGE TRUCKS AND DELIVERY VANS AND SPARE PARTS FOR THEM.

7.5 HEAVY EQUIPMENT LIKE CRANES AND BACKHOES AND BULLDOZERS AS WELL AS SPARE PARTS FOR THEM.

7.6 ITEMS WHICH SUPPLY THE FACTORIES IN THE USA 

7.6.1 SPECIALTY STEELS 

7.6.2 SPECIALTY METALS

7.6.3 GLASS FOR FURTHER PROCESSING 

7.6.4 SMALL ELECTRONIC COMPONENTS WHICH ARE USED TO MAKE COMPLETE SYSTEMS

7.6.5 HIGH END INDUSTRIAL OPTICAL ITEMS 

8 JAPAN ALMOST INSTANTLY BEGAN TO MAKE PEACE WITH RUSSIA TO GET THE FLOW OF RUSSIAN HYDROCARBONS FLOWING AGAIN RATHER THAN SUFFER THE OTHERWISE WORTHLESS CONCEPT OF DESTROYING THE COUNTRIES ECONOMY FOR THE SAKE OF AN OLD MANS CONCEPT OF HOW TO RUN A COUNTRY. IF WE LOOK HONESTLY AT WHAT IS HAPPENING WORLD WIDE WE DISCOVER THIS:    

IT IS IN FACT THE USA DRIVEN SANCTIONS AGAINST RUSSIA WHICH ARE DRIVING KEY SUPPLIERS TO THE USA INTO HIGHER PRICE STRUCTURES. THIS PUSHES UP THE PRICES TO THE USA FACTORIES USING THEIR PRODUCTS AS THE RAW MATERIALS FOR THEIR PRODUCTS WHICH SELL IN THE MARKET AT NOW HIGHER PRICES PUSHING UP THE INFLATION TO EVEN HIGHER LEVELS. THE USA PUT SANCTIONS ON RUSSIA (AND TRIED TO FORCE AS MANY ALLIES AS POSSIBLE TO COPY THEIR ACTIONS). THE RESULTS OF THE SANCTIONS THE USA AND ITS ALLIES HAVE PUT ON RUSSIA, HAVE AFFECTED THE USA AND ITS ALLIES IN A MASSIVE NEGATIVE WAY. HOWEVER THE SANCTIONS WHICH WERE PUT ON RUSSIA HAVE HAD LITTLE IMPACT ON THEIR PEOPLE DIRECTLY. 

YES THERE ARE SOME GOODS WHICH ARE NOT AVAILABLE BUT RUSSIANS HAVE HAD THAT HAPPEN BEFORE SO THEY ARE USED TO SUCH THINGS AND GO TO ALTERNATIVE PRODUCTS TO GET WHAT THEY NEED. IT IS MUCH THE SAME SITUATION OF WHAT HAS HAPPENED WHEN THE USA TRIES TO USE SANCTIONS AND EXPORT CONTROLS TO CLOSE THE GATES ON CHINA “AFTER THE HORSES HAVE LEFT THE BARN SO TO SAY”. 

IT IS THE RESULT OF COMPANIES TRYING TO PUT SHORT TERM PROFITS AHEAD OF LONG TERM EFFECTS IN THE MARKET AND FUTURE COMPETITIVENESS AT HOME AND GLOBALLY. IT IS UNLIKELY THAT THE RUSH EFFORT BY THE JAPANESE GOVERNMENT TO MAKE AMENDS WITH RUSSIA IS ENOUGH TO SAVE ITS CURRENCY AND GDP. 

THERE ARE SOME MOVES WHICH CAN NOT BE UNDONE OR AT BEST ONLY PARTIALLY UNDONE AND THESE LASTING EFFECTS WILL BE FELT IN JAPAN AS WELL AS IN THE USA.

IT IS NOT YET KNOWN AT THIS TIME IF GERMANY WILL SURVIVE AS THE STRONG COUNTRY IT WAS BEFORE, OR IF IT WILL COLLAPSE BECAUSE OF CONTINUED BAD CHOICES BY ITS CURRENT POLITICAL LEADERS. 

ALWAYS REMEMBER THAT OUR ONLY TRUE SALVATION AND PROTECTION IS JESUS CHRIST THE ONLY BEGOTTEN SON OF GOD THE FATHER.

GET PREPARED WITH FOOD, WATER, MEDS, GOLD, SILVER AND TRUSTWORTHY, LIKE MINDED PEOPLE