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In recent days, Japan has intervened in the foreign currency market to artificially drive down the value of the yen. Japan's actions to weaken the yen have driven it from 83 to 85.73 against the U.S. dollar. Most analysts in the mainstream media are portraying this as Japan's attempt to "head off a deflation spiral". Almost everybody is applauding Japan's move, saying it was needed in order to "shore up its export-driven economy".

The truth is, although Japan claims to be helping Japanese citizens with this move, Japanese citizens are the ones who will actually suffer. Despite Japan's economy entering into recession last year, the Japanese were able to maintain their same standard of living because prices were falling due to their strong currency. Some of the largest Japanese exporters like Toyota and Sony saw their revenues decline last year by 20.8% and 12.9% respectively, but this was only bad for shareholders of these companies. Despite rapidly declining revenues for Japanese exporters, Japan's unemployment rate only reached a peak of 5.6% last year and is now down to 5.2%.

The Japanese should be happy and grateful for how strong their economy is compared to the U.S. economy. When it comes to exporters in Japan, their problem is not the strong yen, but the weak U.S. dollar. If Japanese exporters allow the U.S. dollar to collapse, their revenues will continue to decline substantially, but that is a healthy part of a free market economy. Within a year or two, a strengthening yen would allow the Japanese to spend more on their own goods, and revenues for Toyota and Sony would come back strong.

Japan's efforts to postpone a few Japanese corporations going through a brief but tough readjustment period are helping to artificially prop up the standard of living for Americans one last time. NIA believes that the Japanese better be careful what they wish for. Never before in world history has nearly every developed country been in battle with each other to have the weakest currency. Asian producing countries want their currencies to be the weakest so that they can have the honor of shipping their products to Americans who can't afford them.

Currencies are very fragile, especially when they are fiat and backed by nothing. NIA believes that nearly all countries around the world with fiat currencies are currently making the grave mistake of doing everything in their power to debase them. Even a five year old child, if you asked them if they want the money in their piggy bank to be worth more or less, would have the common sense to say more. The world's politicians either don't have this same common sense or they are being paid off by the management of export giants.

Although China recently made the wise decision to allow the yuan to strengthen, they haven't allowed the yuan to strengthen fast enough. China is now facing a price inflation crisis that will soon spread to the U.S. Consumer prices in China rose by 3.5% in August compared to one year ago, the largest increase in nearly two years. On a month-over-month basis (including seasonal adjustments), consumer prices in China rose by 4.8% in August over July.

Workers at a Honda plant in China recently went on strike over wages and work conditions. The Chinese have had enough of slaving in factories for $30 per week while Americans sit home on their couches, collect $400 per week in unemployment benefits, and consume the goods that the Chinese make. Chinese manufacturers are now being forced to increase the wages they pay to workers and these costs will be passed on to American importers of Chinese goods like Wal-Mart.

Wal-Mart recently eliminated their "rollbacks" on grocery items in the U.S. Grocery prices at Wal-Mart rose by a shocking 5.8% in July from June. In fact, some items in Wal-Mart like a 36-ounce bottle of Windex and a 12-ounce box of Quaker Oats rose in price by 51% and 66% respectively in July over June. Considering that in 29 states, Wal-Mart controls more than half the grocery market, almost all Americans are beginning to feel the effects of massive price inflation.

With 70% of the goods sold in Wal-Mart made in China, NIA believes that Wal-Mart's massive price increases for grocery items will soon spread to all other items sold. It is crystal clear for us to see what is ahead for U.S. prices of consumer goods, yet the mainstream media continues to talk about deflation. Cotton prices have surged 28% during the past two months to their highest level in 15 years. That alone guarantees higher clothing prices, but combined with the wage situation in China, Americans could see an unprecedented surge in clothing prices in the months to come.

A massive outbreak of price inflation is already taking place all around us, as Americans enjoy their final days of our artificial economy that is being propped up by China and Japan. Some people say China and Japan continue to buy and hold U.S. treasuries because of our overpowering military presence, but when they start dumping our treasuries and the bond bubble bursts, the U.S. military regime will come to an end.
 

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I enjoy reading your posts, however your avatar really creeps me out! :laughing: Is that from some kind of whacked out music video?

^^^^^
 

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Discussion Starter #3
Thanks !

That's just an expression of my posting habits... it's from one of my favorite movies "The Big Lebowski".
 

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Discussion Starter #5
 

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Thanks !

That's just an expression of my posting habits... it's from one of my favorite movies "The Big Lebowski".
The Dude: Look, just stay away from my ****ing lady friend.
Da Fino: Hey, I'm not messing with your special lady.
The Dude: She's not my special lady, she's my ****ing lady friend. I'm just helping her conceive, man!

:smack
Sir Dude! :partyon:
 

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Discussion Starter #7
Alright... back to the importance of my thread....


In recent days, Japan has intervened in the foreign currency market to artificially drive down the value of the yen. Japan's actions to weaken the yen have driven it from 83 to 85.73 against the U.S. dollar. Most analysts in the mainstream media are portraying this as Japan's attempt to "head off a deflation spiral". Almost everybody is applauding Japan's move, saying it was needed in order to "shore up its export-driven economy".

The truth is, although Japan claims to be helping Japanese citizens with this move, Japanese citizens are the ones who will actually suffer. Despite Japan's economy entering into recession last year, the Japanese were able to maintain their same standard of living because prices were falling due to their strong currency. Some of the largest Japanese exporters like Toyota and Sony saw their revenues decline last year by 20.8% and 12.9% respectively, but this was only bad for shareholders of these companies. Despite rapidly declining revenues for Japanese exporters, Japan's unemployment rate only reached a peak of 5.6% last year and is now down to 5.2%.

The Japanese should be happy and grateful for how strong their economy is compared to the U.S. economy. When it comes to exporters in Japan, their problem is not the strong yen, but the weak U.S. dollar. If Japanese exporters allow the U.S. dollar to collapse, their revenues will continue to decline substantially, but that is a healthy part of a free market economy. Within a year or two, a strengthening yen would allow the Japanese to spend more on their own goods, and revenues for Toyota and Sony would come back strong.

Japan's efforts to postpone a few Japanese corporations going through a brief but tough readjustment period are helping to artificially prop up the standard of living for Americans one last time. NIA believes that the Japanese better be careful what they wish for. Never before in world history has nearly every developed country been in battle with each other to have the weakest currency. Asian producing countries want their currencies to be the weakest so that they can have the honor of shipping their products to Americans who can't afford them.

Currencies are very fragile, especially when they are fiat and backed by nothing. NIA believes that nearly all countries around the world with fiat currencies are currently making the grave mistake of doing everything in their power to debase them. Even a five year old child, if you asked them if they want the money in their piggy bank to be worth more or less, would have the common sense to say more. The world's politicians either don't have this same common sense or they are being paid off by the management of export giants.

Although China recently made the wise decision to allow the yuan to strengthen, they haven't allowed the yuan to strengthen fast enough. China is now facing a price inflation crisis that will soon spread to the U.S. Consumer prices in China rose by 3.5% in August compared to one year ago, the largest increase in nearly two years. On a month-over-month basis (including seasonal adjustments), consumer prices in China rose by 4.8% in August over July.

Workers at a Honda plant in China recently went on strike over wages and work conditions. The Chinese have had enough of slaving in factories for $30 per week while Americans sit home on their couches, collect $400 per week in unemployment benefits, and consume the goods that the Chinese make. Chinese manufacturers are now being forced to increase the wages they pay to workers and these costs will be passed on to American importers of Chinese goods like Wal-Mart.

Wal-Mart recently eliminated their "rollbacks" on grocery items in the U.S. Grocery prices at Wal-Mart rose by a shocking 5.8% in July from June. In fact, some items in Wal-Mart like a 36-ounce bottle of Windex and a 12-ounce box of Quaker Oats rose in price by 51% and 66% respectively in July over June. Considering that in 29 states, Wal-Mart controls more than half the grocery market, almost all Americans are beginning to feel the effects of massive price inflation.

With 70% of the goods sold in Wal-Mart made in China, NIA believes that Wal-Mart's massive price increases for grocery items will soon spread to all other items sold. It is crystal clear for us to see what is ahead for U.S. prices of consumer goods, yet the mainstream media continues to talk about deflation. Cotton prices have surged 28% during the past two months to their highest level in 15 years. That alone guarantees higher clothing prices, but combined with the wage situation in China, Americans could see an unprecedented surge in clothing prices in the months to come.

A massive outbreak of price inflation is already taking place all around us, as Americans enjoy their final days of our artificial economy that is being propped up by China and Japan. Some people say China and Japan continue to buy and hold U.S. treasuries because of our overpowering military presence, but when they start dumping our treasuries and the bond bubble bursts, the U.S. military regime will come to an end.
 

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The Sky is falling. The Sky is falling...
 

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Discussion Starter #10
Not quite yet... soon though.
 

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The US economy is at the mercy of foriegn companies. We have weak trade laws.

But on the flip side the Honda's US/Canada Global distrubution numbers out weighs China's Global distribution.
 

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I have no worries in the dump scare... as this would be self defeating. My worries are in the artificially inflated market -here in the US and abroad. The market has been propped up due to stimulus. This is ending. We haven't even had a taste of inflation yet... -the commercial and industrial bubbles have not been allowed to pop yet. These areas need to bottom out before any real and measurable growth can be sustained. If I had any money to spare... I would stick the bulk of it in to utilities. When this thing hits... I am expecting to see another 6 to 10% reduction in housing and commercial real estate.
 

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Obama's Fault ... :thumbsup:
 

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Yes, brother... yes it is. -well that and the democrats in the last 19 months. They took a bad situation... and made it worse. By targeting stimulus money to 18% of the dependent working class (unions/ infrastructure) and the financial industry -securing it through the treasury... they made a mistake -in to a catastrophe. Wait and watch.... you see if I'm not correct.

The entire planets economy... is dependent upon America doing well.
 

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Yes, brother... yes it is. -well that and the democrats in the last 19 months. They took a bad situation... and made it worse. By targeting stimulus money to 18% of the dependent working class (unions/ infrastructure) and the financial industry -securing it through the treasury... they made a mistake -in to a catastrophe. Wait and watch.... you see if I'm not correct.

The entire planets economy... is dependent upon America doing well.
That's a bold statement ... I'd be curious to hear the micro as well as macro mechanics (Global Financial System based on say the Nash Equilibrium or variant of) as to how you got there from the OP ...

:thumbsup:
 

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Discussion Starter #16
That's a bold statement ... I'd be curious to hear the micro as well as macro mechanics (Global Financial System based on say the Nash Equilibrium or variant of) as to how you got there from the OP ...

:thumbsup:

Micro and macro means nothing on a global scale. This is the greatness that you guys don't seem to have the ability to see -of this country. Think about that for a bit... the entire planet's economy is based upon this country doing well and purchasing their products... while simultaneously advancing ways for manufacturers world wide... to do it cheaper and faster. That -is the true greatness of the system we are the sole proprietors of... world wide.
 

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. Some people say China and Japan continue to buy and hold U.S. treasuries because of our overpowering military presence, but when they start dumping our treasuries and the bond bubble bursts, the U.S. military regime will come to an end.


omg..... :lol:
 

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Discussion Starter #19
13% interest rates... -we may see those numbers, again.
 

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Don't we have a bet going about the economy crashing by the end of the year???

You have been crying the sky if falling since The day after Obama won the white house. You are constantly saying that the economy is about to get much worse while it slowly gets better. Now you are saying that we are about to see huge inflation while most economists have been much more concerned with deflation, which is far worse than inflation. It now seems that neither deflation nor inflation are on the horizon.

But keep up the chicken little dance you may one day finaly be right....then you can tell us you saw it comming 15 or 20 years ago. :laughing::laughing:
 
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