Japan Preparing "Package" To Create 700,000 US Jobs Ahead Of Trump Meeting

Tyler Durden's picture

We were skeptical when two days ago we reported that Japan was contemplating investing some of the hundreds of billions of pension savings held in its massive, $1+ trillion GPIF pension fund into US infrastructure projects, a story which the GPIF itself quickly denied. However, we were all too clear about the motives behind this proposal trial ballooned by Prime Minister Abe: appease Trump in any way possible during next week's, Feb. 10 meeting between Japan and the US, to avoid being labeled a currency manipulator (which Japan certainly is with a central bank balance sheet roughly the same size as its GDP) so that Japan's QE, the backbone of Abenomics, can continue. If that included make ridiculously impossible promises, so be it.

Which is why we were not surprised to read today that as the latest incarnation of the "Appease Trump" proposal, Japan is putting together a package it says could generate 700,000 U.S. jobs and help create a $450-billion market, to present to U.S. President Donald Trump next week, Reuters reports.

The focus is, once again, on US infrastructure investment only this time the GPIF does not feature among the sources of funds. The five-part package, to be unveiled when Prime Minister Shinzo Abe visits Trump on Feb. 10 in Washington, envisage investments in infrastructure projects such as high-speed trains and cybersecurity. Reuters cites sources "who declined to be identified as they were not authorized to speak to the media." Said sources could well be Abe himself, who is leaking random "plans" just to make sure Trump doesn't blow up at Japan again as he did earlier this week when he accused it of devaluing its currency, sending the Yen, and JGB yields, higher.

Reuters adds that investing in overseas infrastructure projects dovetails with a key plank in Abe’s growth strategy, which is to export "high-quality" infrastructure technology. Japan will invest 17 trillion yen ($150 billion) in public and private funds over 10 years, the sources said. It was unclear, however, why Japan would invest in US infrastructure instead of its own, which in the aftermath of the Fukushima disaster, was revealed to be in dire shape. Among the proposed Japanese investments would be to develop high-speed railways in the northeastern United States, and the states of Texas and California, and renovating subway and train cars.

Some other tidbits: the package also includes cooperation in global infrastructure investment, joint development of robots and artificial intelligence, and cooperation in cybersecurity and space exploration, among others.

What makes this proposal particularly ludicrous is that according to Reuters, the "government may tap its foreign exchange reserves account to fund part of the package." In other words, Japan would use cash out of its own pocket to pay for US projects and creating US jobs.

In any other country, the merest suggestion of such a betrayal of Abe's own people would be met with angry domestic protests and demands he step down, however Japan is... different.

And while Reuters repeats what we previously reported, namely that Japan's government "may also get funding from government-affiliated financial institutions, as well as the Government Pension Investment Fund" this rumor was again denied when GPIF President Norihiro Takahashi said on Thursday there was no truth to reports that the Fund would invest as a part of the government package, adding that the "Fund made its investment decisions to benefit policyholders."

Which is true, especially since the returns on public infrastructure projects tend to be famously negative.  It also makes one wonders whose benefit Japan's prime minister is serving by promising Japanese funds to create nearly a million US jobs. Whatever the answer, Americans will gladly take it, as will Japan if it means the BOJ can continue monetizing its debt and kicking the can just a little bit longer.

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Shocker's picture

Keep the winning going.. Its a start, but lets keep America building America.

We want more of this - http://www.dailyjobfix.com

.

King Tut's picture

so you ran dailyjobscuts.com during Obammy and now this BS for Orange Jesus? fuck off

Stuck on Zero's picture

Beware of Japanese politicians bearing gifts.

847328_3527's picture

Nice if they sent those hot Jpanaese women over here to help out with job creation. I am 100% pro-Japanese importation! Definitely help dilute some home-grown riff-raff FSA.

AldousHuxley's picture

100,000 Toyota car sales staff on quotas.

 

all the good jobs created in US will be staffed by Japanese citizens.

 

Konnichiwa SUCKERS!

froze25's picture

Is it me or is Japan really freaking out, I guess given the Choice of China or the US, Japan is going with MAGA

AldousHuxley's picture

Chinese won't let Japanese sell their cars after what they did in WWII. Atually didn't see  a single Japanese car in China...mostly Korean and some German. so rise of Chinese consumers is non-news for Japan. Meanwhile, US nuked Japanese @ss, so they know what Trump is capable of....

 

Kind of like Joos and BMWs.

Son of Loki's picture

I saw some Toyotas there but some were smashed during the anti-Japan protests awhile back. Not wise to buy a Japanese car in China.

Orc from Mordor's picture

I read your comment and urgently advised Putin to throw a couple of nukes on somebody too. It really helps negotiate if you kill several million people this dazzling way. Watch the horizon, 'cause I dun know who he's gonna throw them on, maybe it'll be you.

duo's picture

I don't care if JR builds it and runs it, but we need a train from Dallas to Austin and San Antonio. Bad

Shocker's picture

I hear ya...too many freaking jobs in the last few months.

King Tut's picture

Yeah- all the #s are totally legit now that Orange Jesus is in

froze25's picture

We will see once the permits are issued and ground starts being broken, till then I am hopefully optimistic.

D Nyle's picture

The sad part is that Japan is known for only paying 5% of there promises

 

thesonandheir's picture

I love the way this is portrayed in the media, like Japan is doing this out of the kindness of their hearts.

 

Can guarantee all the materials and components will be Japanese made.

 

Bullet trains in Boston?

balolalo's picture

IT'S CALLED A BRIBE

full stop.

07564111's picture

It's the GOP Pay2Play ;)

Jim in MN's picture

Bullet trains won't last long vs. Boston drivers.

Old ratty Buicks, each one with dents on all four quarterpanels.....

CRUNCH

Raffie's picture

Good because I need a job.

Just wish I had info WHERE the jobs are and some links.

dicksburnt's picture

What a bunch of suk-dik, ass-likking Japanzees!!  May the fukashima radiation lay waste to those worthless ass-raped monkeys.  Let China have their revenge with them, sit back and raff out roud!

Rainman's picture

I saw some horse shit under the Christmas Tree, so we must be getting a pony.

Japan's debt is 245% of its GDP. Party on !!

gatorengineer's picture

shows you how far into the twilight zone you can go.....  our GDP is 18T, and at the present rate we wont hit 245% until President Bannons second term.

BigFatUglyBubble's picture

You're traveling through another dimension,
a dimension not only of sight and sound but of mind;
a journey into a wondrous land whose boundaries are that of imagination.
That's the signpost up ahead-- your next stop . . . the Twilight Zone!

orangegeek's picture

Everyone is looking for yield and is sitting on cash - lots of idle cash in US.

 

FUCK OFF JAPAN - we'll txt you if we need you.

Jim in MN's picture

Meanwhile, shocking new news (yes, real news) from inside the Fukushima nuclear disaster site:

http://www.asahi.com/ajw/articles/AJ201702030064.html

Radiation level in Fukushima reactor could kill within a minute

THE ASAHI SHIMBUN

February 3, 2017 at 18:00 JST

Radiation levels that can kill a person in a minute and holes created by melted nuclear fuel could further delay decommissioning operations at the No. 2 reactor of the Fukushima No. 1 nuclear plant.

Tokyo Electric Power Co., operator of the crippled plant, said Feb. 2 that the maximum estimated radiation level near what is believed to be melted fuel in the reactor was 530 sieverts per hour, the highest so far since the triple meltdown in 2011.

In its investigation into the interior of the No. 2 reactor, TEPCO also confirmed at least two holes on grating for maintenance work below the bottom of the reactor’s pressure vessel.

silverer's picture

The media must be having a major problem with this. How can they admit this level of cooperation without making themselves look stupid? By the way, how many jobs did Japan create for the US while president golfstix was in charge?

King Tut's picture

new factories to make adult diapers for Japan's aging population and dolphin-meat processing plants

NoPension's picture

Japanese H1b visas? 

I'd take some Japanese over the shitskins.

One thing is for sure, our kids need a fire lit under their ass.

On a personal note, I've not been very motivated lately. It feels like I'm coming down off a Trump sugar high. Things are moving at a rapid pace... it's exhausting.

DeltaDawn's picture

Get out there and start creating jobs!

c2nnib2l's picture

I'm so tired of winning already :( and it's only 1sth month of his presidency 

gatorengineer's picture

yeah but its like the corner game of find the queen when all three cards are queens....

Devils Advocate's picture

So let's have 1 broke government fund another broke governments infrastructure projects with newly printed funny money!!!  Winning!

nakki's picture

You can almost do anything when you have an UNLIMITED amount of digital fiat. Isn't that nice the serial counterfeiters at the BOJ "helping out" Americans with freshly digitized monopoly money.

hotrod's picture

So why doesnt Japan do this in their own country??????  They are in such bad shape the BOJ buys all their debt and half the Nikeii and THEY WANT TO HELP THE USA?

ALSO  Why all this interest in JOBS,  I thought the USA was at full employment and the jobs creation has been great according to BLS for over a year but all I hear is JOBS JOBS JOBS is mission critical.  THREATENING COMPANIES to create jobs, penalizing those that move jobs, stoppiing immigrants from taking jobs,  WTH  the USA is at full employment and doing so well we gotta raise rates

StreetObserver's picture

They are in a deflationary depression and are desperate to invest their money where there is some kind of return.

besnook's picture

japan is not in depression.

hooligan2009's picture

i cant find japans assets summarized anywhere and broken down y type of asset... but...

this is fly looking for a windshield

http://www.tradingeconomics.com/japan/government-debt-to-gdp

Japan recorded a Government Debt to GDP of 229.20 percent of the country's Gross Domestic Product in 2015

looks pretty depressing to me.

apparently its deficit will close to zero in 2021 though, much like italy's

http://www.tradingeconomics.com/japan/government-budget

deplorable nation's picture

WINNING! Take that Martin Sheen, you pinko bitch!!

StreetObserver's picture

Oh boy, more promises kept.

Big pharma is delighted, the amount of antidepressants they are about to sell is staggering!

King Tut's picture

There's a sucker born every minute

c2nnib2l's picture

WTF is that ?!

 

http://edition.cnn.com/2017/02/02/health/trump-drugs-propecia/index.html

 

check the video, cnn is suggesting that drump is taking some other stuff SNIFF SNIFF 

orangegeek's picture

fake news / news for shitbag snowflakes

hotrod's picture

Social Secrity must be going broke quicker than estimated due to so few working.    All this urgency with jobs drastically contradicts the 4.8 full employment metric and the FEDS threats to agressively raise rates

 

hooligan2009's picture

Japan needs only convert its holdings of 1.1 trillion dollars of US Treasuries for this appeasement into "real assets". sounds like a good deal on the surface, but then consider that foreign governments print fiat and buy US debt and equity assets (e.g. the Swiss National Banks holding of 15.27 million AAPL shares worth the odd few billion dollars)

http://ticdata.treasury.gov/Publish/mfh.txt

http://www.nasdaq.com/quotes/institutional-portfolio/swiss-national-bank...

whilst the fiat game is played by the Swiss, the Japanese and a bunch of soveriegn wealth funds like Hong Kong, Simgapore and Saudi Arabia have "real money" - so at this stage "what difference does it make" you might ask?

well, fiat is the illegal debasement of a currency. sponsored by delusional libtard central banks that seek always to suppress both what it defines as excess and sub-par activity

does the US Government own foreign equities or foreign government bonds? no, because to do so would increase the national debt for additional risk and costs plus an uncertain advantage? do foreign equities even outperform US equities, net of double the costs and twice the oversight required (with a foreign accent being somehow a "comfort" and a sign of "expertise" in the local market).

so, Japan has already borrowed the money to invest 1.1 trillion dollars in treasury bonds and is engaged in debt monetization that can only end up as the fly hitting the windscreen.

similarly, the US Fed has engaged in 4 trillion of fiat money creation as part of an experiment that will soon have lasted TEN YEARS. Obama added 8 trillion in his eight years as the trillion dollar a year sponsor of falling education benefits and welfare dependency via trade deficits.

why is ok for Japan to "print and convert to damned treasuries" and not for the Fed to do that same with its 2.7 out of 4 trillion in SOMA holdings?

could it be that the fraud that Japan seeks to inflict is unpalatable to even to the Fed?

could it be that Japan seeks to export its "experts" and employ them in the states using imports that it sources from its trading relationships? why can't the US high speed train attract Japanese investment today?

interestingly, even now, after obamas breakneck efforts to bankrupt the US and take Government debt to 20 trillion (well 93 billion to go here http://www.usadebtclock.com/)

the US should finance infrastructure spending from the SOMA via the formation of "the Department of Infrastructure"

falak pema's picture

The Duck's Dodd Frank revocation will Obama look small in terms of debt mayhem.

Yen Cross's picture

   Sneaky Japs. They want to invest in trains and subways so they can collect the tolls on them. That is why Trump is going to have a hard time finding private investors for the huge Public projects.

   The investers will get paid shit for their bonds and have no ownership stake, or revenue stream, since these are PUBLIC infrastructure projects maintained by the taxpayers.

   Why don't the Japs repave all our roads, rebuild our electrical grid, and sewer systems for us? There's no revenue stream in it for them, beyond the bonds they buy.

 The Japs can fuck off. They fucked up our commercial real estate market back in the late '80s, and still have those losses on their books.