Anil Selarka Quake in Japan, Tremors in America
P a g e
When Japan was not listening to the nature that low interest rates and weaker yen washarmful to its economy for almost 16 years, the Supreme Power assumed the command.It engineered the massive crash in the form of major earthquake of 8.9 scale followedby huge Tsunami that wiped out almost entire north east coastal cities of Japan in lessthan few minutes. What was built over 66 years since World War II was destroyed inless than 6 minutes. That's the nature - the Supreme Lord.
Japan - Making money in hard goods, loose in Paper trading
When the Japan was creating fabulous products, everyone admired, including God. HEmust be carrying Giant LCD or HD TV to micro TV, gadgets, mobile phones! Just kidding.But when HE saw that the Japanese were blindfolded by its love for dollar, not God, HEwas perturbed. HE tried to teach the Japanese with subtle warnings by causing itsNIKKEI crash from 37000 to currently 11,000 (before Tsunami), and not allowing itseconomy to prosper for 16 years. However, the Japanese did not understand nor didthey heed the warnings.
Japan was exporting huge physical inventories to United States, UK, Europe and rest of the world in fierce competition, not in terms of price, but in terms of extra ordinaryquality. However, what it earned was kept in Dollar reserve with the United States bydeliberately keeping its currency artificially low. Japanese governments in almost everysuccession went on printing more and more Yen to buy dollar to keep its own currencyweak. United States mused. It never objected to Japanese keeping its currency low but went on lecturing China to allow its currency strengthen when both countries werefollowing almost identical policies.
The nature could not prolong the obvious wrong. It finally struck, caused severest quake on record in Japanese history, and sank almost every asset that was used to buildthe massive reserve in dollars. When the humans do not heed the warnings, the natureacts, and IT DOES ACT with severest punishment. But even then, the humans do not learn.
When the disaster struck, the natural course for Japanese was to withdraw the dollarand convert into yen. After all, its reserve - a kind of savings - has to be used one day foreventual use in calamity. But the Japanese did not use. They pumped into moneymarket 15 trillion yen created out of thin air (not by selling dollars) which is equal toUS$ 183 billion. And what happened - the NIKKEI dropped further by 14% in single day!On following day, it pumped in another 8 trillion yen (almost $93 billions) again out of thin air into the financial markets, that is, the paper market.
Almost 23 trillion Yen went up in smoke in just two days.
When the need of the hour for the Japanese government was to rush massive physicalaid to affected people and area under destruction, it went on engaging itself into