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Bubble That Broke The World

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The Japanese situation is now a totaly controlled con trick on the Japanese people according to many accounts Ive read, they of course dont have access to the 0% rates, this is used to keep the Yen down against the $ £ and E etc so the big industrialists can sell to them (all aided and abeted by western banks etc re the carry trade). Japanese CPI is very much manipulated and used to keep wages and pensions etc down. Its many years since Japanese companies realy looked after their workers and most dont get those perks anymore even though they are still expected to work free overtime and never take their holidays etc. As a trick economy, it cant work if repeated all over the world, the Japs already hate China for pulling similar tricks (without US approval though). We couldnt get away with it, however Im sure the big VI's and BOE will try something to keep their bonus flow cash positive. A race to the bottom is what I would call it.

Interesting post. I'd be interested in details of the accounts you've read, if you have them.

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Interested in the 0% Japanese rates, there were a number of well informed sounding posts saying that those rates were for external consumption only. I can't find the thread. However, be that as it may, were the Japanese 0% rates actually covering up for insolvent banks?

I wonder, because I have little confidence that the BoE (or treasury or FSA) would tell us if banks went to the wall, they'd try to cover-up, and Mervyn has said that is what he'd do.

Is there evidence that the Japanese recession was prolonged at all by Banking failures that the Government tried to prop up?

I am increasingly coming to the view that the only sensible approach is to do away with all central bank intervention in banking failures, and allow the markets (and consumers) to make decisions for themselves. This is an Augean Stables situation, and we need to just wash away all the [email protected] from the banking sector. Covering up just makes the smell worse in the long term!


The recent scenario of mortgage in Japan is that the corporate has basically stopped borrowing from the banks thus the banks had to mainly depend on personal loans mainly housing. The average mortgage rate of Japan is 2.37%.

There are two types of mortgage rates in Japan fixed and floating the rates also vary with the number of years. Like for example, 5 years of fixed mortgage rate is from 2.23% to 2.68% and 15 year fixed rate mortgage rate is 2.81%to 3.26%.


Japan, being a developed country, has the second largest mortgage market among the selected Asian countries. Japan has a very low mortgage rate of 2.375%.

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Are you sure you're not confusing them for Chinese?

I see far fewer Japanese tourists around these days than I used to.

Venice last Christmas: 40% of tourists were Chinese.

Quite often they will only take 1 week per year, I spent some time in a classroom where a friend of mine was teaching English within a big Japanese company, after getting drunk with these people a few times, all their gripes came out, seems that they get allocated 4 weeks per year, however they cant justify taking any more than their immediate manager, and if he takes 1 week you take one week and it will never be more than a week, young females however can take the lot. One poor chap there hadnt had a holiday in 10 years. However when they do go away they are very intense, can see most of Australia in a week or 7 cities in Europe sightseeing 12 hrs per day.

Interesting post. I'd be interested in details of the accounts you've read, if you have them.

Here are a few paragraphs from http://elainemeinelsupkis.typepad.com/money_matters/

She did put a big article together re the Japanses situation however cant find it, I have here a few paragraphs from the last couple of months, she seems to put a lot of effort into researching this stuff, not just opinon

''I have pointed out in the past, if we allow Japan to run an aggressive export market program coupled with 0% loans, a fake depression in Japan with falling wages while necessities there inflate greatly, we will end up imitating them. And this is what Roubini wants to do! Argh.

I used to debate with him long ago. I kept pointing out the contradictions about Japan. Today, we know that Japan's depression is fake. So fake, the government this year tried to resort to sales taxes to kill commerce so they could claim, the depression is just terrible. This last week, Japan's Nikkei news openly boasted about 6 years of GROWTH. You don't get that in depressions.

(Japanese)Consumers have LESS INCOME. So they 'resist' sales because they MUST! And the government knows this. Pretending consumers are doing this willfully is part of the Samurai code---'Blame the peasants for all problems.' A top Korean company just closed down all their outlets in Japan because they can't make money there. This is the other good side to this fake depression. Japan wants as few imports as possible. This is better than all the other Fortress Japan schemes! Not only do they prevent competition and imports, they get the world to feel SORRY for them as they ruthlessly do this! Neat trick. And the Goldman Sachs people have noticed this and are very eager to imitate this.

I am very certain they want this model for us. This is why I am so alarmed with what is developing and want to stop them.

When the Japanese banking collapse happened, they were very woeful. But by 1997, they hit on a new scheme. One aspect was to increase their FOREX reserves until it was the biggest on earth. The other was to depress wages and consumers and thus, switch the country into enforced savings and then the kisser: GIVE NO INTEREST TO SAVERS! Ha. This confiscation of the savings of the workers was a stunning success and now is being kept running in the teeth of workers sending savings out of the country. Indeed, this weakens the yen so it is encouraged!''

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  • 1 month later...

Comparing to 1930s economics is about as useful as comparing to 1930s technology. Things really have changed. Go get yaself a good book if you arent familiar enough with events to get this :).

Correct, in those days there was abundent cheap energy. Things are different now because we are close to peak oil, peak population and peak food. Things are worse.

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i've lived in Japan. they have insane amounts of public holidays and nobody works on those. on the days they do work - they work silly hours. starting a little later than in the UK but working until your boss goes home is the norm, and that can often be midnight. they work very hard but very inefficiently because the bosses never make decisions until absolutely necessary. making a wrong decision is almost worthy of Hari Kari and so it's far better for your CV (but not for the mental health of those working beneath you) to simply avoid making a decision at all, and just hope that you are on holiday when it all goes tits up.

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