• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

China To Japan: Hand Over The Senkakus Or Your Economy Gets It

Tyler Durden's picture




 

Chinese Foreign Minister Yang Jiechi said Saturday that "Japan needs to face up to reality, and take real steps to correct its mistakes... so as to prevent a further escalation," with regard the demand that Japan reverse its nationalization of the small islet chain of the Senkakus. In some of the strongest rhetoric yet, The Japan Times reports that the Chinese minister said Japan's 'single-handed' actions so far have "caused great damage to China-Japan relations and undermined stability in the region," and urged Tokyo to "make concrete efforts" to prevent fraught bilateral ties from spiraling out of control. As the reigns of control in China continue to be handed over (with Yang expected to become state Councillor for foreign affairs), we suspect the situation is far from resolved - especially with Shinzo Abe fighting a war on another front (that China is likely not pleased with either).

CNY-JPY exchange rate has devalued 28% in the last 6 months with the Yuan at its strongest against the Yen in 5 years...

 

Via The Japan Times,

China on Saturday demanded that Japan reverse its nationalization of the Senkakus and address the sovereignty dispute through negotiations, urging Tokyo to “make concrete efforts” to prevent fraught bilateral ties from spiralling out of control.

 

Chinese Foreign Minister Yang Jiechi said the sharp deterioration in Sino-Japanese relations was “single-handedly” caused by Japan’s purchase last September of three of the main Senkaku islets, and accused Tokyo of “illegally” seizing and occupying what he termed Chinese territory. The islet group in the East China Sea is administered by Japan but has been claimed by China since the 1970s.

 

“The Chinese side believes that Japan needs to face up to reality, take real steps to correct its mistakes and work with us to handle and resolve relevant issues through dialogue and consultations, so as to prevent a further escalation of the situation and stop it getting out of control,” Yang said on the sidelines of the National People’s Congress in Beijing.

 

Speaking at a news conference, Yang denounced Japan’s Sept. 11 purchase of the Senkaku islets of Uotsuri, Kitakojima and Minamikojima from a Saitama businessman, which effectively nationalized the entire chain, saying the move has “caused great damage to China-Japan relations and undermined stability in the region.”

 

...

 

While censuring Japan for its acquisition of the islets, Yang said that developing “long-term, sound and steady (bilateral) relations” serves “the fundamental interests” of both countries and their people. “The Chinese side is ready to continue to develop a strategic relationship of mutual benefit with Japan,” he said.

 

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Sat, 03/09/2013 - 21:09 | 3315999 AssFire
AssFire's picture

CNY-JPY exchange rate has devalued 28% in the last 6 months with the Yuan at its strongest against the Yen in 5 years...

 

Well, that was Japan's goal wasn't it? 

I think the term currency war is misleading: if every country is doing it and we lend Europe billions the war cannot be won. It should be called a debasement war wereby every person who saved fiat gets clobbered.

Sat, 03/09/2013 - 21:19 | 3316038 DoChenRollingBearing
DoChenRollingBearing's picture

Yes, the whole world is getting murkier by the day.  It is up to each of us to look-out for our loved ones.

Our savings are at risk!  If China & Japan go at it (possible, but not likely IMHO), that would definitely NOT help, well, anything.  Deploy your savings accordingly!

Sat, 03/09/2013 - 21:27 | 3316051 alphamentalist
alphamentalist's picture

china lacks the sea-power to make this anymore than an economic shoving match. the ironic bit is the more pain they inflict on Japan economically the more Japan's reactor-free economy will be desperate for the china sea's close-to-home oil and gas. regardless of how long or disruptive this dispute is, the real loser--as it always seems to be--will be the mutual-masturbators at the boston-branded-betas that have bid NKY to this level. nice job guys.

Sat, 03/09/2013 - 21:45 | 3316089 knukles
knukles's picture

Don't shoot till you see the whites of their eyes.

Sat, 03/09/2013 - 21:51 | 3316097 max2205
max2205's picture

We need a good tv war. So ben can print moar

Sat, 03/09/2013 - 22:37 | 3316201 Spirit Of Truth
Spirit Of Truth's picture

Then, of course, there's the North Korean wild card, which China has vowed to defend:

http://www.secondkoreanwar.com

Sun, 03/10/2013 - 00:49 | 3316345 DeadFred
DeadFred's picture

So many choices. How is one to figure out which will be the war that takes down the Ponzi? It's coming soon so everyone wake up and be alert.

Sun, 03/10/2013 - 01:37 | 3316375 jonjon831983
jonjon831983's picture

It's always said there are more than one incident that leads to the next event.

 

Too many balls juggling = disasster.

Sun, 03/10/2013 - 05:10 | 3316495 Poor Grogman
Poor Grogman's picture

Sorry to bring bad news but war actually HELPs the ponzi.

All that new money, misallocation of manpower and resources destruction and rebuilding, it's a keynesians wet dream.

We live in a world where evil is seen as necessary for the systems survival..

Sun, 03/10/2013 - 10:47 | 3316784 IrritableBowels
IrritableBowels's picture

Thanks, Jesus.

LOL

Sat, 03/09/2013 - 22:15 | 3316155 Bicycle Repairman
Bicycle Repairman's picture

"china lacks the sea-power to make this anymore than an economic shoving match."

You gloss over air-power and missle-power.

Sat, 03/09/2013 - 22:32 | 3316189 fudge
fudge's picture

and there's the possibility of drone fleas

Sat, 03/09/2013 - 23:12 | 3316243 alphamentalist
alphamentalist's picture

if they can't take and hold the islands they can't really "own" them. as to missiles and planes... 1) the US owns the skies over and around Japan, and china won't risk a full fight with the US, and 2) japan has spent plenty of cash on ABM (and if it is half as good as Iron Dome, china's missiles are probably not super effective). plus, this is a grand domestic distraction for both government’s from their respective economic woes. moreover, if china starts shooting it would be an opportunity for US politicians to shut off their trade with the US. we'll see how exaggerated their swagger is when the last walmart boat leaves...

Sun, 03/10/2013 - 01:49 | 3316390 Terminus C
Terminus C's picture

Yea, China is worried about the US "cutting them off".  Where would Americans get anything if China was shut out?  Local manufacturers?  What local manufacturers?  Besides... who wants the US/China trade to continue because they make billions off of it each year...?  The people who own the US and the Chinese government.

Sun, 03/10/2013 - 02:25 | 3316423 alphamentalist
alphamentalist's picture

DingleBarry™ and his pack of union-pandering-halfwits in the house would love to "protect american jobs" or some such nonsense. the shortage would cost the US a little inflation but could be made up with imports from a LONG list of others (vietnam, thailand, indonesia, india, etc). as near as i can tell, aside from a ton of assembled-in-china iStuff, china's manufacturing might is pretty low tech (toys, nick-knacks, nascar t-shirts, etc). it is easily replaced. don't get me wrong. i am not tenting my fingers and getting giddy about the prospect of skirmishing with china. quite the contrary. but this seems inevitable. profound economic distress, leading to trade/resource slap fights, leading to wars is a well worn theme of history. 

Sun, 03/10/2013 - 04:06 | 3316489 williambanzai7
williambanzai7's picture

3D Printers of course. I already print all my food. Next step, printing women.

Sun, 03/10/2013 - 05:35 | 3316535 thisandthat
thisandthat's picture

Print gold, then you'll have all you want.

Sun, 03/10/2013 - 03:24 | 3316466 Chaos_Theory
Chaos_Theory's picture

Not too mention the distance isn't exactly challenging for the Chinese ESF and SSF to send surface action groups with pretty decent SSM and SAM capabilities to control the area (if one assumes the Washington CVG and it's group stay out of it).  We're not talking about China sending their Navy to the Atlantic or anything.

As for airpower, just go count for yourself on Stratfor the readily available American fighters in Japan (and the Japanese ones too) and then count what China has for upgraded 3rd and 4th gen fighters with the legs to make it to the area.  Rough guess is China would have a 3-1 numbers superiority, albeit with a lower number of 4th gen to F-15s/F-16s/F-18s.  Don't count the USFK aircraft...they'll be busy with the pampered Fat boy king up north.

Sun, 03/10/2013 - 05:34 | 3316533 Neoisolationist
Neoisolationist's picture

US and Japan would probably have a good reason to declare a force majeur, and cancel the chinese, and some other debt (namely Fed held).

Japan's navy is set up for sea-denial.  think they have about 21 diesel electric submarines. if china were to use very small craft to try to take the islands it's a different calculus, but any attempt by conventional surface forces would result in said surface forces finding their way to the bottom of the sea. So if it does go hot, expect the Chinese to utilize asymmetric warfare to get around that.

Sat, 03/09/2013 - 21:04 | 3316000 walcott
walcott's picture

This is retarded. Both countries and every other country on the planet is owned by the same freakn' Fantasy Island banks or bank.

Sat, 03/09/2013 - 21:05 | 3316010 scatterbrains
scatterbrains's picture

yea but that whole 9/11 thing is pretty freaky

Sat, 03/09/2013 - 21:38 | 3316015 AssFire
AssFire's picture

all of it diversions and justifications

Sun, 03/10/2013 - 01:33 | 3316371 The Heart
The Heart's picture

Bingo.

First thoughts are, what is going on over in the middle east now?

Are there skulduggery plans to attack Iran happening now over there somewhere?

Tick-tock towards what next???

Sat, 03/09/2013 - 21:29 | 3316057 tbd108
tbd108's picture

The Chinese banks are not "owned" by the West. That is why they had a "revolution" in 1949.

Sat, 03/09/2013 - 21:34 | 3316067 GMadScientist
GMadScientist's picture

They are not "owned" by The Chinese either (at least not the one's who aren't in the politburo).

Sat, 03/09/2013 - 21:40 | 3316079 tbd108
tbd108's picture

I couldn't agree more.

Sun, 03/10/2013 - 01:51 | 3316391 Terminus C
Terminus C's picture

They are completely integrated into the system.  The 1949 revolution was lost on the ascension of Deng Xiaoping.

Sun, 03/10/2013 - 09:29 | 3316686 Go Tribe
Go Tribe's picture

Japan did not live up to its investment potential. It must be destroyed.

Sat, 03/09/2013 - 21:03 | 3316004 disabledvet
disabledvet's picture

From "leveraged buyout" to "hostile takeover." in America we call it "Dell Computer." my money's on Microsoft either way...

Sat, 03/09/2013 - 21:07 | 3316013 geminiRX
geminiRX's picture

when you drop the price of windows 8 by over two-thirds -> not a good sign of growth either...

 

http://globaleconomicanalysis.blogspot.ca/2013/03/windows-8-adoption-at-...

Sat, 03/09/2013 - 21:35 | 3316070 GMadScientist
GMadScientist's picture

"I don't understand; we made it just as lickable and pointless as OS X" - Ballmer

Sat, 03/09/2013 - 21:35 | 3316071 NoClueSneaker
NoClueSneaker's picture

NoClue . My last windows "operating system" was something with 2000 ....

 

 

Sat, 03/09/2013 - 21:57 | 3316100 ebworthen
ebworthen's picture

Why upgrade to Windows 8 which doesn't let you see or know what you are doing or want to do?

Why is Microsoft intent on alienating people who know how to use Windows and a computer?

Dumbing down the O.S. to the level of Apple's gives people no incentive to upgrade; it gives them incentive to go to the National Geographic of operating systems (MAC O.S.), or stay with Windows 7, or go to a Linux deriviative, or Google O.S.

Microsoft is dumbing down email too, and forcing Hotmail users to switch to "Outlook.com" which is brain dead (no word menus, fewer options, more ads).

DUH.

Sat, 03/09/2013 - 23:34 | 3316270 StychoKiller
StychoKiller's picture

All the PCs in my house have Linux installed, and only two of them are booted up with any version of Windows.  WHY put up with Virii, trojans and popups?

Sun, 03/10/2013 - 01:36 | 3316374 The Heart
The Heart's picture

What do you think abut Ubuntu?

http://www.ubuntu.com/

Sun, 03/10/2013 - 03:26 | 3316438 SHRAGS
SHRAGS's picture

Ubuntu is very good, I'm typing this post on it now, plus I have 4 other Ubuntu installs running it in the house, and have done since about 2008.  Linux allows you to run on older hardware that others may be throwing out. The best way is to find an old machine (1+G ram is a good start), download an ISO image, burn to CD or DVD and boot it off the optical drive (save the CD/DVD - you can use it as a recovery disc).  You may can even do this on your current machine without touching its hard drive, although any changes you make will be lost on reboot.

You can also run it in as a virtual machine (download virtualbox for win/mac/linux) from within your current system if you really want to test it.  Both the DVD & virtual machine will be a little less responsive than when it is run natively from the hard drive install version.

There is an embarrassment of riches in terms of software available, an enormous user support help base over at ubuntuforums.org, with a specific beginners & install help forum.  The trick with Linux is to learn how it works in parallel with whatever you are currently using, until you feel comfortable, just don't go cold turkey!

Linux users tend to be fairly self sufficient in terms of problem solving issues, yet also very supportive - ZH is very similar. Before asking a question on a forum, you might consider How to Ask Questions the Smart Way to avoid repetition and being flamed or ignored.

Another "flavour" to consider is Linux Mint - it is itself derived from Ubuntu, so most of the Ubuntu help will be applicable.  It aims to be closest to WinXP and looks very user friendly when I saw a retiree with minimal computer skills demonstrate it to the local computer club this week.

Sun, 03/10/2013 - 08:19 | 3316478 TPTB_r_TBTF
TPTB_r_TBTF's picture

.

 

"ubuntu" is the African way of saying:

 

Linux for children

 

Sun, 03/10/2013 - 05:44 | 3316544 thisandthat
thisandthat's picture

I meant to (for a looong time...), but then I found out I just can't put all tmps into a single partition (/tmp /var swapfile/part) - talk about user (un)friendly. At least windows allows mapping both directories to partitions AND partitions to directories at will...

Sun, 03/10/2013 - 07:55 | 3316592 css1971
css1971's picture

Of course you can.

Sun, 03/10/2013 - 16:49 | 3317666 thisandthat
thisandthat's picture

Funny because I was just looking into it and the answer everywhere is no (eg: /var and /tmp in sda2, not binding!).

Sun, 03/10/2013 - 06:11 | 3316552 thisandthat
thisandthat's picture

You know how wrong you got it when its market share is half that of Vista...

Sat, 03/09/2013 - 21:04 | 3316006 insanelysane
insanelysane's picture

Luckily North Korea is stable at the moment.

Sat, 03/09/2013 - 21:47 | 3316063 knukles
knukles's picture

And so's Kim Jong UnisexHarido Boy and his Gangam Style buddies in them neat hats.
It's "Kooked out, dude"

Sat, 03/09/2013 - 21:38 | 3316075 NoClueSneaker
NoClueSneaker's picture

North Korea will become even more stable when lil' Kim gets some fisting from the Big Chinese Brother. Surprise!

Sun, 03/10/2013 - 00:20 | 3316317 e_goldstein
e_goldstein's picture

<--- Rodman was the top

<--- Kim was the top

Sat, 03/09/2013 - 21:06 | 3316011 krispkritter
krispkritter's picture

Ah so, the groves come off...if these two get to the point of throwing bullets at each other, the winner better rename them to the 'Seppuku Islands'...stupid, but we've done worse.

Sat, 03/09/2013 - 21:08 | 3316014 newengland
newengland's picture

Regional disputes in the Far East are best handled according to their laws and customs. It is their neighborhood. We are merely distant relatives and friends...or interfering commercial rivals.

Sat, 03/09/2013 - 21:15 | 3316033 DoChenRollingBearing
DoChenRollingBearing's picture

Agreed, + 1

That doesn´t mean we can´t do Japan some quiet favors...

That´s part of Oriental culture too...

Sat, 03/09/2013 - 21:39 | 3316072 knukles
knukles's picture

We do kinda "owe them a few".  After all there were Hiroshima and Nagasaki followed by the GE Fuckushittinme reactors.
Ah, nothing a week or two of k103 Potassium Iodide can't square up amongst us.

 

PS. On second thought maybe we oughta stick our nose way under the tent, stir up the pot and really clarify the matters and ensure peace like we've done in the Middle East.
Booyah! 
A chopstick in every hand.

Sun, 03/10/2013 - 00:10 | 3316310 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

We rebuilt Japan from the ground up after WWII. We owe them nothing. Time for us to leave our bases and their defense to themselves!

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