The worst thing I had ever imagined in terms of the “ABENOMICS” just happened: The Bank of Japan announced yesterday to start its additional quantitative easing.
What the BOJ wants to do in very close coordination with the Ministry of Finance is quite simple as follows:
– The BOJ starts to buy Japanese government’s bond from the GPIF, one of the biggest (sleeping) SWF in Japan.
– By doing so, the GPIF gets fresh cash and buy massively equities of Japanese companies, which are mainly held by foreign investors nowadays.
– Finally, foreign investors plus their governments begin to declare support to the ABENOMICS.
Hmmm… To make everything simple, I’d just say one thing to you: The BOJ committed suicide. Why?
What the Japanese people urgently need is not money but innovations which give them new technologies with huge markets. It’s not money itself, but the real economy that matters. While I interviewed top bankers in Japan recently, all of them agreed on the opinion that Japanese banks are full of money to the brim. They really have no idea how they should treat the money.
Apart from such a reality, the BOJ focus on two things: The one is to boost historical asset bubble, and another is to hyperinflate the whole Japanese economy at the very last stage. There are, of course, very good to the GOJ, but fatally bad to the Japanese citizens.
To secretly declare its default around 2017/18, the GOJ has to make efforts for financial adjustment by all means. In this regard, it plans to sell off huge amount of national assets such as equities and real estates. To earn much more money than usual by doing so, the GOJ needs an asset bubble. Folks of the Ministry of Finance aim only at rocking the market, and don’t care what will happen afterwards.
Without boosting the real economy, the poor ordinary people in Japan will face disastrous hyperinflation sooner or later. To devalue sovereign debt, hyperinflation is the best way governments can choose, of course, at the sacrifice of citizens on the street. What folks of the BOJ are telling in the public, is just “noble lies“.
Due to this bazooka shot by the BOJ, the NIKKEI 225 index rocketed, while JPY/USD is being depreciated dramatically. You may wonder what will occur from now on, I suppose.
There is one thing the BOJ plus the MOF obviously neglect: It’s not fincial measures but geopolitical risks guided by US and Europe change the world. Wise investors are now checking out the simple fact that the gold market is moving downward in opposite correlation with the Japanese stock and currency markets. According to the Le Chatelier’s principle, the whole thing will become upside down at the next stage: Dramatic appreciation of gold and JPY plus collapse of the Japanese (and world) stock market.
Well, “Alea iacta est.” To evade disastrous end of the scenario the BOJ and MOF obviously keep, the Japanese urgently need to get back to innovations. Only innovations can boost the real economy. I’m firmly of the opinion innovative technologies related to detoxifying tritiated water emitted by the Fukushima Dai’ichi Nuclear Power Plant, which I already pointed out to the public for several times, are capable of making successful contributions in this context. Because they are also capable of producing hydrogen based on the detoxifying of tritiated water, which clearly enhance the GOJ’s policy towards hydrogen energy.
Now, the time has finally come for me when I should make a proposal of such a comprehensive and essential innovation in Japan to the very person who is politically entitled to make a decision. I firmly believe it’s the destiny of my life which will surely save Japan and the world community and I shall win this game.