bluesky.greentrees comments

One sensible timely law.

Mr. McCain is gripped by his prejudice against Putin & Trump, and lost his head to objective assessment. ISIS hatred & bend on violence for the rest of the world with almost daily killing & violence committed is clearly the biggest threat to people's safety, from any single group of people. Just go to any developed city airport, and ask why are we subject to such necessary stringent checks?

Why Western media & US politicians lack the common sense that US & Russia (& China) unity is indeed needed to effectively curb, control and finally incapacitated IS terrorism? And that definitely will entail sharing of intelligence and terrorism information.

There is some truth that Trump is the most watched and scrutinized President by American media & Congress. America in a big way is one big Hollywood talk-show. Trump news indeed sell, and sell very well.

Strange shocking very volatile things happened in financial markets that are "controlled and managed" after a long time. The Yen as "controlled" by BOJ is in this class.

On Yen, before it depreciates to 500 Yen to a Dollar to reflect a relatively weaker and weaker Japan, will it appreciates to 75 Yen to a Dollar boosted by its current account surpluses first? A long-term double bottom at 75 (last seen at 2011) before it really fall out of bed? It will be violent and fierce. Probably Kuroda will not be around then.

This is a precursor to Japan opening up its agriculture market.

Japan & US have been talking about this for 30 years, and nothing substantial came out.

Trump & Xi got it done over 4 weeks.

Japan & Japanese will be impoverished when below 2 factors are met?

Net debts of government plus that of BOJ JGB holdings exceed that of net savings of all private sector (households & corporations)

Japan in a structural net current account deficit.

Watch, it will come because of the demographics.

Greece debt crisis will be considered child play then. Kyle Bass was still way too early.

BOJ, especially Kuroda has been supporting the ill-discipline of MOF & the government wasteful & big government out of control spending habit. This is a clear indirect way of monetizing the debts, as BOJ bonds purchased accumulated to north of 300 trillions yen and growing rapidly. What is happening is a steady erosion and transfer of purchasing power and money from Japanese savers & consumers to debt spending of MOF via the BOJ action. Accounting-wise everything will be balanced, as accounting doctrine is left side entry must have a right side entrance. But substance-wise is a hidden transfer of wealth from savers to government. That's the reason why savers are getting zero interest and sometimes negative interest if costs were to be added. And when Kuroda real inflation were to hit 2%, then Japanese savers & consumers purchasing power will exponentially be devastated. Pray that don't happen soon. If not there will suddenly be lots of very poor "middle-income" families & retirees in Japan. Kuroda & MOF are still enjoying the best sides of their policies high stock prices, Olympics spending, etc), the adverse sides will surely show up in due time. Say sayonara to tranquil Japan....economically, socially & politically when inflation is 2% and higher.

Constitution change is not needed and relevant. Why fight and kill and be killed over some uninhibited rocks?Serious change may come if Dollar/Yen drop to 50, or population drop to 80 million. Which one will come first? Or will it be business as usual, and just debates and debates and white paper after white paper, blue ribbon panel after blue ribbon panel? Will the LDP focus on the well being of the people, instead on the well being of LDP?

Japan power culture is based on entrenching status quo with concentration of power at the top among the old, elites and rich in government, businesses, associations, etc. The old and powerful are either relishing and enjoying their power and its related cultural benefits or physically too weak, seeing doctors to be really concerned about demographics realities, though they will superficially lament about it. Japanese are trained for status quo since young and not about truth to confront real issues. Its not a questioning, seeking nor anticipatory society but group(s) based socially conformist society.

Instead of complaining, Japan can do something useful like planting millions of desert moss plants, saltwort, Saxaul trees, etc in the Gobi desert and Mongolia. Japanese are excellent in forestry preservation and there are enough cherry trees and maples in Japan already. Don't waste the talent and skills.

This must be joke of the Day, "Japanese government is making concerted efforts to address some imbalances". Since 1980s, Reagan days till now, Japanese government has been talking addressing this and talking about opening markets to the US, etc...but there is absolutely no material change in agricultural barriers, cultural & administrative barriers, etc...and the monetary efforts to weaken the Yen to help Japanese exporters. Japan is the most protective trading nation among the developed nations...Period!

Japanese Yen should be much stronger, as Japan continues to chalk up huge current account surpluses. But has been distorted by BOJ relentless money printing to weaken the Yen in past 5 years of Kuroda BOJ to help exporters.

There is no doubt BOJ has been printing lots of money and diluting the purchasing power of Japanese consumers, through making a weak Yen. Japanese domestic assets are grossly over-valued because of the very aggressive & extreme monetary policies. Given a rapidly aging and declining population, asset prices of land, stocks, etc should be declining rapidly not rallying as in past few years. Given a huge current account surplus, Japan should be in a major structural deflationary state, whereby consumers purchasing power in consumption and be able to buy cheap apartments and houses. But BOJ has greatly distorted the case, resulting a major redistribution of wealth from consumers to asset holders. Unknown hidden adverse social and economic effects will be obvious in due time when the JGB debt bubble burst. Yen should be a very strong currency if not for BOJ action.

The nature of trade deficits of China and Japan with the US is significantly different.

A significant part of China huge trade surplus with the US, is from US MNCs based in China exporting to the US, where they gained significant profits while paying low labor and other resources' costs to the Chinese. The big gains are actually accrued to American executives and shareholders.

While most of Japan huge trade surplus with the US, is from Japanese manufacturers based in Japan exporting to the US, where they gained significant profits, providing high level executive and labor and resources' compensation to the Japanese and their shareholders.