Monthly Archives: February 2016

The End Game Is Beginning.

time machine

Currently, everybody in Japan talks about “negative interest rate” introduced by BOJ. The point is nobody except for BOJ guys understands what it is and always stick to the following fundamental question: “Negative interest rate. Yes or No??” To grasp it correctly, you can’t miss the continuous dynamism the financial capitalism still shows. Introduction of negative interest rate as such isn’t an issue, even though it’s obviously capable of boosting asset bubble in the market. However, this is just the very beginning of the end game central bankers try to start.

As I referred previously, what they initially aim at is “negative real interest rate”. While nominal interest rate is pressed down, inflation rate is pushed up by QE of central banks. If central bankers succeed to do so, real interest rate becomes negative, which means de facto financial stimulus to make asset bubble happen dramatically.

Nevertheless, you may not relax without thinking of the very near future. As long as inflation rate rises, nominal interest rate has to go up step by step. This is exactly an abominable development for those advanced economies that have been accumulating sovereign debt, such as Japan. When they can’t afford to make any more payment of their own sovereign debt’s interest, what they can do is only to declare default. I personally suspect Japan will face such a tragic end of the game within a few years, maybe by 2018.

Of course, any central bankers do not want to be sacrificed as the cause of default. With so-called “global leaders”, they try hard to enable innovations to boost the global economy. Their streamline from Davos to G20/B20 is dedicated to this purpose. “Innovation” is the last key word which is left for the human kind, they believe. Based on estimate of the situation, I’d say the great period of innovation is finally coming, although it’s limited only till 2018 (or 2020). If we’ll fail to innovate both the human society and economy as a whole, the on-going end game will immediately lead us to the age of grand default on the globe.

In this regard, you may not forget the date of the G20 finance ministers’ meeting in Beijing, “26th and 27th of February, 2016”. The date should be memorized as the first page of both apocalypse and genesis of the human history. Stay tuned (At least, the Japanese stock market is to rocket dramatically from the next week. Watch out.).

 

Flexibility and Self-confidence for the Better World.

future_photo

As you might know, I always get up very early in the morning (at 4:30 AM) for my daily OSINT work. Until 9:00 AM, I intensively work on summing up what I find out in the internet and mix up it with classified information I get thanks to insiders in the financial and political worlds.

Still, my duty doesn’t stop there. As soon as I finish to brush up my image on what’s going on in the global community on the desk, I professionally have to show up as CEO of my own think tank vis-à-vis colleagues in the office located in the center of TOKYO.

Since my company doesn’t need any physical production facilities but depends only on human brains, I sometimes have specific difficulties you might never understand. As long as you work in “factories” as a part of manufacturing sector, what you have to do is just adapt yourself to routines the company’s superiors fix. There, you’ll never burn out, because you’re not obliged to continuously rethink in terms of innovation.

Such a traditional, and bucolic scenery of conventional industries can’t be found in ultramodern sector such as the one I work on as CEO. My think tank dedicates itself to both the financial market and internet, which are inevitably characterized with growing volatilities. In order to catch up with these volatilities you’re never capable of controlling, you may not stop thinking of what’s up right now in the whole world.

Almost 9 years have passed since I built up the think tank called “IISIA”, my own think tank. In the course of time, a series of corporate clients welcomes the company in the market, and I’ve not had any difficulties in terms of “financing “, or financial strategy to run the company. Nevertheless, I’ve had to continue to work on human resources due to the structural impediment I just tried to describe in the company.

It’s almost difficult to decide whom you should hire, while you concentrate only on appearance and face of work force. It’s rather its intelligence, competencies and capability for self-acknowledgement that really matter. The point is you can’t evaluate these capabilities when you don’t start to work with candidates in the reality. Only when you face volatilities to overcome with them in the office, you may grasp what capabilities they actually have.

Calming down intentionally and connecting myself with the surrounding in both the reality and virtual world. That’s what I’ve been doing professionally since I established my own think tank. Those who are born with the sense of acknowledgement and self-confidence based on flexibilities vis-à-vis accelerated volatilities in the real, digitalized world can go along with me as buddies in the company.

Now, we’re about to welcome new colleagues in IISIA very soon. As its founder and CEO, I sincerely hope a new but continuous story for success will be developed thanks to their endeavor to move forward for the better world.

 

The Age of Stress Management

collapse

The global financial market continues to collapse. Some “experts” refer even to comeback of financial meltdown we faced in the autumn of 2008. A nightmare.

However, I myself do not advocate such a dramatized propaganda. Because it’s extremely obvious what central bankers envisage. To make “negative” real interest rate happen is their ultimate goal. You can realize it immediately, when you take a look at the following three-steps scenario:

-Step 1

In a coordinated manner, central bankers of major countries such as US, EU, Japan and even PRC take steps for quantitative easing. A huge amount of money is scattered in the market.

-Step 2 (We are here!!)

Central bankers introduce “negative nominal interest rate” in their own financial policy. They never explain the people on the street what they really want to do with that, since the people are supposed to not be capable of realizing complicated matters like this scenario (sic!).

-Step 3

By asking other powers, central bankers enable typical commodities such as crude oil, gold and copper to soar in the financial market. The reasoning as such doesn’t matter. For this purpose, you can use, for example, “war economy” or “a coordinated cut in oil production”. Once inflation begins, it automatically becomes obvious that negative real interest rate emerges. As you know, it is “nominal interest rate” minus “inflation rate”.

As long as you face the period of negative “real” interest rate, you can theoretically enjoy de facto economic stimulus. That’s exactly what central bankers actually focus on.

Welcome to the one-way to default of nation’s economy! Because central bankers have to raise nominal interest rate in proportion to inflation rate, they will, sooner or later, reach the limit of this smart policy. It’s limited because of payment of national debt. In such a highly indebted country as Japan, you can easily reach the limit. If the government will fail to boost its economy appropriately regardless of “negative real interest rate”, it can’t simply help declaring its own default.

The point is the default of national economy as such is pretty good for the government, because it means the government will finally get rid of debt burden. Nevertheless, you may not disregard from where a reverse fund to cover such a huge loss comes.

Once the above mentioned “negative real interest rate” will be realized, you can enjoy a kind of asset bubble just for a while. Yes, “just for a while”. After that, volatilities in the market will be both sharpened and accelerated, and what you really need is your own stress management.

The age of stress management is about to begin. Those who are aware of this simple fact in the very near future will be able to survive in the world. Watch out.

Japanese Democracy on the Brink of Erosion

osaka_building_in_air

The day before yesterday, I capriciously turned on TV. Japanese PM Shinzo ABE was reported to have held a debate with other members of the Diet. I found awfully disgusting how he behaved. It seemed that he couldn’t help hiding arrogance all the previous leaders in power showed at the very last stage of their political careers. Spontaneously, it occurred to me that his political leadership will soon come to an end, while nobody says so in the Japanese mass media.

Based on what’s circulated in the INTEL network in Japan, I take this opportunity to make clear the following: Just before the G7 summit in ISE/SHIMA, he’ll abruptly get involved in a disastrous scandal of foreign policy. Unfortunately, he won’t be able to survive this time, since the issue is too deeply rooted in his political power to sweep away. Well, let’s see. Imagine how it’ll look like when his old fashioned control of mass media will suddenly vanish.

In addition, my colleague closely related to the political scene in OSAKA asks me to pay attention to what’s been actually happened in local elections there. When I listen to this story for the first time, I hardly believe what the colleague means. However, I can finally realize what really happens in the local politics in OSAKA: Organizational manipulation of vote counting has become daily occurrence there, which leads to overwhelming victory of a certain local political group in the KANSAI region. This way of manipulation is about to be expanded even in other regions including Tokyo.

Japanese Democracy stands on the brink of total erosion because of such a political crime, which never stops. Let’s see what’ll occur in the next stage. Stay tuned.