Japan’s Bubble and Russian Bubble


Elvira Nabiullina

Having got back from St. Petersburg, where I was invited to the 23rd International Banking Congress hosted by the Bank of Russia, I’m now quite sure western elites of the financial world have been preparing for a new bubble. That is to be seen in Russia. Although nobody tells such a story, especially in Japan, I’m awfully confident of such a near future. Why?

The key to the whole secret is “inflation targeting”. Russia will join the group of nations which have already done this financial policy from the next year, 2015. The Russian aim is obviously to “disinflate” her economy. In order to get the continuous inflation under control, Russia urgently needs to introduce disinflationary policy, explains Ksenia Yudaeva, younger but powerful colleague of Elvira Nabiullina, governor of the Bank of Russia.

Ksenia Yudaeva

When I heard this explanation, I spontaneously thought it to be a typical “noble lie“. Because the recent history of western countries since late 1990’s clearly shows that this disinflationary policy inevitably leads to extremely low or even “negative” interest late at its final stage, it is always related to excessive risk taking in the financial market. This is the very reason why bubbles and their collapses have been repeated since 2000. Finally, Russia’s turn will come. As soon as the new financial policy will be launched, the Russian economy will start to boost and reach a bubble, maybe in 2018, when her financial market will be finally opened in accordance with rules of the WTO. As the very person of merit for that, either Elvira Nabiullina or Ksenia Yudaeva will be given the position of Russian Prime Minister, I suppose. Ms. Yudaeva has got an advantage over the former, since she is in charge of this new type of monetary policy based on her broad human networks in the World Economic Forum.

The point is Japan’s Bubble is simultaneously happening with the Russian one. In this regard, we must be aware of the fact it’s not US but Russia which should be intensively taken care of by both the financial policy and diplomacy of Japan, which nobody in the Japanese society knows yet.

As I have pointed out in previous columns on this English weblog, the Japan’s Bubble has already begun since the beginning of the so-called “ABENOMICS” launched in December, 2012, and is now reaching the very finaal stage of its first phase based on intentional, massive depreciation of JPY. My adaptive unconscious tells you fatal breakout of the war in ME will drastically change the world in the forthcoming autumn, while every single investor will rush for Japan as the very safe haven. Even though this historical movement will make an irreversible appreciation of JPY and collapse of the Japanese stock market happen, the world community will soon become aware of the fact there is only an option for them to invest: That’ll be JAPAN.

When this scenario will come true before 2015, Japan will have an decisive advantage over Russia. Since the dramatic change of Russian financial policy will be launched, as I explained above, from the next year,  we can’t expect a Russian bubble till the end of this year. As long as Moscow/St. Petersburg will stick to this time schedule, there is a huge opportunity for us to see the realization of Pax Japonica, which I described before.

Again, it’s not US but Russia, with which Japan will have to battle. While the authority of Japanese diplomacy still maintains its traditional narrow viewpoint vis‐à‐vis Russia only in bilateral relationship, Russia itself is now stepping forward to become the global power even in the financial world. We must urgently check what’s hidden behind charming Ksenia’s smile. That’s why I intensively repeated trips to St. Petersburg where President Putin was incubated thanks to financial assistance of a Japanese shadow man. Only this guy can clearly say “NO” to Vladimir Putin for the sake of Japanese national interest. You may wonder who it is. When the right time will come, I’ll selectively tell you the truth. Stay tuned.

IBC2014 St.Petersburg



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