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Quake in Japan, Tremors in America

Quake in Japan, Tremors in America

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Published by Anil Selarka
Author Anil Selarka evaluates the aftermath of Japan tragedy of quake and tsunami. He deliberates on the options open to Japanese government and where it commits serious errors. He says that the best option open to Japan was to sell its dollar reserve and buy yen instead of just printing more and more yen which will cause most serious inflation.

With Japanese government throwing almost 25 Trillion yen into the money market (equivalent to $ 300 billions), he says that this money will be up in smoke in just two days. The need of the hour for Japanese government is to indulge into tangible assets growth and its management, not paper trading like money market operations. He says that Yen contrary to all expectation will rise to 60 from 82 level against US dollar.

With Japan possibly remaining absent at future treasury auctions in United States, the possibility of higher rates in USA is written all over it. If dollar weakens due to Japanese selling, Chinese the largest holder of US treasury are not going to keep quiet. They too will join Japan which may escalate the currency crisis. The author has written previous article "Enter the Second Stage of Financial Crisis" only a few weeks ago, which may become reality soon due to these unexpected events. The nature is supreme - the author says. One can not continue to suppress truth for a long time. Japanese were doing it for over 16 years, and it finally exploded with natural calamity.

Read the article for major effects and economic fall out from Japan quake and following tsunami. The author has also penned a remarkable book "Sub Prime Resolved" which is perhaps the only book that provided total solution to the economic crisis faced by the United States and the world.
Author Anil Selarka evaluates the aftermath of Japan tragedy of quake and tsunami. He deliberates on the options open to Japanese government and where it commits serious errors. He says that the best option open to Japan was to sell its dollar reserve and buy yen instead of just printing more and more yen which will cause most serious inflation.

With Japanese government throwing almost 25 Trillion yen into the money market (equivalent to $ 300 billions), he says that this money will be up in smoke in just two days. The need of the hour for Japanese government is to indulge into tangible assets growth and its management, not paper trading like money market operations. He says that Yen contrary to all expectation will rise to 60 from 82 level against US dollar.

With Japan possibly remaining absent at future treasury auctions in United States, the possibility of higher rates in USA is written all over it. If dollar weakens due to Japanese selling, Chinese the largest holder of US treasury are not going to keep quiet. They too will join Japan which may escalate the currency crisis. The author has written previous article "Enter the Second Stage of Financial Crisis" only a few weeks ago, which may become reality soon due to these unexpected events. The nature is supreme - the author says. One can not continue to suppress truth for a long time. Japanese were doing it for over 16 years, and it finally exploded with natural calamity.

Read the article for major effects and economic fall out from Japan quake and following tsunami. The author has also penned a remarkable book "Sub Prime Resolved" which is perhaps the only book that provided total solution to the economic crisis faced by the United States and the world.

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Categories:Types, Business/Law
Published by: Anil Selarka on Mar 16, 2011
Copyright:Attribution Non-commercial

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08/11/2013

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 Ref: 2011-02-PO of March 15, 2011
Quake in Japan, Tremors in America
Nature is Supreme:
 
Nature is the most powerful force dawned upon the universe by almighty God. If humans were to control everything, no one would have ever believed in God. Whensomething wrong is perpetrated over the years, it ultimately gets corrected by thealmighty force of nature with glaring violence with a warning and stern reminder “Donot fiddle with me, did you get that?”
 
In the wake of severe quake followed by Tsunami in Japan, the humanity was servedwith this violent reminder again. The illiterate people learn the message quickly, but the educated class - so called Investors, speculators, hedge fund managers, pensionfund controllers, derivative players - does not learn easily and quickly. The nature hastherefore reserved the massive shock - CRASH - in whatever the educated class practiceday by day, year by year, decades by decades and centuries by centuries.
 
Have you heard the word “Crash” from the illiterate class - ever? No. But ask theeducated illiterates or Elite Class - they will recall every crash of 1929, 1987, oilshocks of 1980s, crash of commodities, oil prices crash to $ 9 per barrels, crash of 2003and crash of 2008 - all in financial markets with the paper and electronic moneycreated by humans to utter defiance of the disciplinary money of God - Gold.
 
 
Anil Selarka Quake in Japan, Tremors in America
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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.
 
Violent Correction
 
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

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