Japan cannot follow de-dollarization as it is under the
thumb of the USA. Even trying to prop up the Yen is not allowed. Janet
Yellen warned Japan against over-reacting, knowing Japan will sell its
US treasuries to buy Yen. Japan is a total puppet on a string.
Kishida
thought that by raising interest rates from zero will change the
situation. It failed miserably, despite Japan even spending billions to
prop up the falling Yen. Japan is a very sick country economically
today, all because of the USA's control of its economic direction. Yet
Japan is following the USA's dictate to sanction China. Just like the
EU, Japan is going to sink into oblivion. Only 10.4% of Japanese in a
poll wants Kishida to remain as PM.
It is ironic that some
countries have still not realized the consequence of following the USA
after seeing what the EU is turning into just by sanctioning Russian
energy. Russia is not yet on the level of China in economic strength and
clean energy innovation. Sanctioning Chinese EVs is a slap on the face
of the USA and the EU.
BYD is pulling out investments in Europe
and migrating to Mexico. The Mexicans are welcoming them with open
arms. Jobs will be created and EVs made in Mexico will flood the South
American and Global South market. BYD is perceptively distancing itself
from investing in the USA and Europe for good. There is a bigger market
in the Global South, which it is eyeing and will dominate. What are USA
and EU EV makers going to do to compete? Cost wise they are unable and
unthinkable to do so.
And with China also erecting tariffs
against USA and European cars entering the Chinese market, it is a no
brain move by the USA and EU to raise tariffs against Chinese EVs to the
heavens. It will hurt their own carmakers more than China. And it will
certainly hurt their own consumers buying expensive cars that others in
the Global South are paying much less for.
Suffice to say, shooting their own feet seems to be the intention of the USA and the West. So be it.
Anonymous
The Japanese Yen just tanked to a 38 year low. Intervention is on the cards. But where is Japan going to find the resources to prop up the tanking Yen? Selling its USA treasury holdings is the only answer. Japan is already the country with the highest debt to GDP ratio among countries in the whole developed world. Borrowing more will be a disaster upon a disaster.
ReplyDeleteJapan is not like the USA, able to print toilet papers without consequences. Japan doing it will cause massive inflation, the likes of which will decimate Japanese businesses and the Japanese people. Already Japanese worker's wages have been stagnant for decades and the falling Yen is adding more misery to its people's living standards. But Japanese businesses cannot afford funding wage increases to help workers fight inflation.
But selling USA treasuries to prop up the Yen is against Yellen's strong warning. She warned Japan not to go overboard with propping up the Yen. So, should Japan just let the Yen dive even lower? Kishida is in deep trouble now, with just 10.4% of Japanese wanting him to remain as PM in a recent poll. When you are a puppet state of the USA, even farting needs permission from the master. Let this be a lesson for Taiwan and the Philippines. Of course, if they are clearer minded enough in their observation, what is happening in the EU should give them a good lesson.
I still cannot get it regarding the talk that Japan is also trying to sanction China and bringing more trouble upon itself. Japan should just live with their deflated ego that China has overtaken them for good and not bring more trouble for its people by following diligently the dictates of the USA. Nothing good will come out of it by following Satan. Satan will only bring doom to others and lead them to hell.