"Americans voting for a president on Nov. 8 must realize that they are voting for peace on Planet Earth if they vote for Trump. But if they vote for Hillary it's war. It will be a short movie. There will be Hiroshimas and Nagasakis everywhere."
The warmongers and gun manufacturers are cheering today as Shinzo Abe has won a sweeping victory in elections to Japan’s upper house, leaving him within reach of a parliamentary supermajority that would allow the government to revise Japan’s pacifist constitution.
This is how America became a dictatorship. Instead of there being any longer a political party that represents the aristocracy, being opposed by a political party that represents the people, there are two political parties that represent two sides of the aristocracy: on the one side (the Democratic Party) are the «noblesse oblige» aristocrats, and on the other side are the «greed is good» aristocrats. The people are merely servants; they are ‘dispensable’, just like ‘dispensable’ nations are (every nation except America).
Everyone knows that Japan, whose population is now declining for the first time in its history, sold more adult than baby diapers for the first time in 2012, and is "older" than any nation in the world, has a "demographic problem." What few may know, however, is that it also has a secret plan to fix said "demographic problem" - a solution that would make Hitler, Goebbels and Stalin proud.
It's taken roughly five months, but in addition to having skeptics within the BoJ, NIRP has now encountered political opposition... "The Democratic Party wants to call for the withdrawal of negative interest rates. Negative interest rates shift the burden onto savers. They cause unease among smaller companies because they make financial institutions unwilling to loan, or prompt them to call loans in early."
Following the latest set of global economic news, most notably a mediocre set of Chinese Official and Caixin PMIs, coupled with a mix of lackluster European manufacturing reports and an abysmal Japanese PMI, European, Asian stocks and U.S. stock index futures have continued yesterday's losses. Oil slips for 4th day, heading for the longest run of declines since April, as OPEC ministers gather in Vienna ahead of a meeting on Thursday to discuss production policy. The biggest winner was the Yen, rising 1%, with the USDJPY tumbling overnight and pushing both the Nikkei 1.6% lower and weighing on US futures.
Yasuhiro Sato, president of Mizuho, Japan's second-largest bank by assets, said Abe's framing of the sales tax delay would determine whether it sparked concerns about the government's credibility regarding its plans for fiscal consolidation. "The worst scenario is [the government] will just announce a delay in the tax increase. That could send a message that Abenomics has failed or Japan is heading for a fiscal danger zone and then it will harm Japanese government bonds' credit ratings."
Shinzo Abe promised the Japanese people a glorious economic recovery, but the economy sucks. Nevertheless, Shinzo Abe wants to stay in power as long as possible and the best way for him to achieve this is to call for snap elections this summer. This presents quite the dilemma. How does Abe prevent his popularity from slipping further in order to give himself a chance of winning early elections? It seems he found his answer. Crackdown on the media by ensuring anyone who dares criticize him or him idiotic, failed polices is fired.
The big overnight story was certainly the BOJ's announcement at 11pm Eastern whether or not the Japanese central bank would boost QE. This is how we previewed it: "now all eyes to the BOJ when tonight around 11pm Eastern, Japan's central bank is expected do and say precisely... nothing." Sure enough, nothing is precisely what the BOJ delivered, leading to a big, if brief tumble in the USDJPY suggesting many were expecting at least a little tip from the BOJ.
Having achieved his militarist goals, amid massive protests and plunging popularity, it appears Shinzo Abe is rapidly taking gaining on Vladimir Putin's spot atop the tyrannical-dicators-of-the-world-meme. By pushing through this change to Japan’s pacifist constitution, Japan’s nationalists have gotten their foot in the door, so to speak; and as Pater Tenebrarum notes, once a long-held principle is abandoned, further steps to alter the legal framework are usually not long in coming, prompting, as TokyoReporter.com reports,a 71-year-old man to allegedly deface roughly 30 political posters - drawing a hitler-esque moustache on Abe posters.
It has become virtually impossible to differentiate between actual central bank intervention, hopes of central bank intervention, and how the two interplay on what was once the "market" but is now merely the place where money printers duke it out every day in some pretense of price discovery set by those who literally print money.
Whether it is due to thin holiday liquidity, due to the BOJ intervening just ahead of its usual time, because Japan's "legendary" Twitter trader "CIS" just went bullish (again), because prime minister Abe just learned he would be reinstalled as head of his ruling LDP party because no challenger had emerged unleashing three more years of unchallenged Abenomics, because Japan's Q2 GDP was just revised modestly higher (to a less negative number) or just because this is how the New Normal rolls, moments ago the Nikkei flash smashed higher some 400 points higher, in a well-choreographed algorithmic frenzy, to take out Friday's high stops.
"Japan's pension system has been hacked and more than a million cases of personal data leaked, authorities said on Monday, in an embarrassment that revived memories of a scandal that helped topple Prime Minister Shinzo Abe in his first term in office," Reuters reports. China to be blamed in short order.