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Lofty Matters: Profiting From The Suffering Of Japan
Image Source: The Yen has Gone Beserk What has been truly frightening about the Japanese Disaster of Friday 11th March 2011 has been the devastating speed with which the wave of speculators have hit Japan. The earthquake shook the whole business world to its roots but it was the rushing onslaught of the merciless sea of speculation that really did the damage. The best barometer of this has to be the currency and the graph of its journey since Friday reveals the truth about the bankers and their cohorts the FOREX traders exposing the true morality behind generating massive profits and bonuses. Image Source: The Yen has Gone Beserk What we have witnessed over the past 6 days is a massive increase in the value of the Japanese currency. Now this may seem very strange to anyone who might "dabble" in economics. If the Japanese economy has been under immense pressure for the past 14 years, government debt is the highest as a ratio to GDP of anywhere in the leading nations, the Japanese Central Bank is printing Yen at huge volumes to keep things going and along comes a destructive and massively expensive natural disaster then perhaps you would expect the value of the currency to fall? After all, the currency should reflect how we value an economy, surely? If that economy is in dire trouble, if the government is getting into much more debt than is wise and if the management of these problems is to print more paper currency which is not backed up by increases in productivity then any rational evaluation would tell you the yen has to be weakened. Add to that scenario a $180 billion bill for the Earthquake/Tsunami and then the uncertainty about nuclear energy (bearing in mind that the Japanese economy is absolutely reliant on nuclear power) and only a madman would be buying yen right now. Well almost right, not a madman but the cold hearted, self serving speculator who knows that the Japanese government and people will need Yen to fund their reconstruction. Consequently if "we buy the yen now" we can sell it back to the Japanese at a big profit when they absolutely have to have it. Of course, once we have sold their own money to them then its value will collapse but that is ok because we will have moved into iron, copper, cement etc., pushed up their prices and thus be able to make a huge hit when we sell them the resources they will need for that reconstruction. Obviously they will have to pay twice as much again for them because the value of their currency wont be that great. Bonuses all round I believe! Image Source: Fat Cat with Cash This may seem completely immoral, even heartless, but that view would be in keeping with the idea of a free market; it is a philosophy of trading not a philosophy of ethics. In such a system of open and level playing fields advantage can be taken as and when it is seen but that is always balanced by the risk. If you are going to pump money into buying yen then you are betting that it will not collapse before you can offload it at a profit. Make the wrong move and you could loose big time. Of course, if you actually cause the disaster yourself, like for example lending money to people who can't afford to pay it back and then wrapping that risk up with a triple A credit rating (most usually called fraud) and spreading it in multiples through the global financial market, then you can always get governments to pillage the tax payer to cover your loses. The free market is only free when the bankers are filling their pockets, when they begin to sink beneath the waves because they have overloaded those pockets then we all have to pay and that is called a "bail out". Let us pose this question then; If their is an international currency collapse will the bankers return to government to cover their losses? Hey, the answer to that question may be worth betting on at the bookmakers! Our hearts go out to the people of Japan not just because they have suffered one of the most devastating natural disasters of all time but because the barbarian hoardes are now in their pillaging them for every penny they have. So as the tax payers around the world cough up in aid and support whilst putting in a few dollars of charitable donations, the bankers are busy reaping profits right there at the disaster scene. Naturally the price of living around the world will also rise just that bit more for all of us when they go to stage two and push up the raw material prices for the Japanese reconstruction but hey, that's the free market! Free as in "Free Citizen of Rome". Image Source: After the Tsunami What is stark about the earthquake and tsunami of 11th March 2011 is that on one day hundreds of thousands of people lived in an economy and social structure which represented the height of 21st century civilisation then with 24 hours they all lost everything. When such disasters happen in the third world, Haiti for example, well we all shrug our shoulders and move on because those people were poor in the first place. Besides, the Haitian currency wasn't worth buying so there was no real profit in that disaster other than ripping off the aid funds. Maybe the amount of time taken to help those poor people has been obscene and the fact they are still suffering today is a disgrace but the Japanese are a different case, they were wealthy. If it happened to them then we all shudder because if they can move from cars, homes, i-phones and fast food to an Ethiopian style famine landscape in a matter of minutes it is just that bit too close to home. Thank your lucky stars we don't suffer from natural disasters like that and that, as far as we know there are no substantial meteorites coming our way. Image Source: The Daily Reckoning NEW YORK (AP) – Stocks fell sharply Tuesday as the nuclear crisis in Japan weighed on global markets. The stock market dropped at the start of trading on news that dangerous levels of radiation were leaking from a crippled nuclear plant. The plant was damaged in last week’s earthquake and tsunami. Japan, the world’s third-largest economy, accounts for 10 percent of US exports. Read more: Why Japan Feels the Need to Print Money http://dailyreckoning.com/why-japan-feels-the-need-to-print-money/#ixzz1GpX8vS5z Links: http://ftalphaville.ft.com/blog/2011/03/16/517326/the-yen-has-gone-berserk http://www.zerohedge.com/article/day-yen-carry-trade-died http://geopolicraticus.wordpress.com/2011/01/17/cash-flow-is-king http://www.mirror.co.uk/news/top-stories/2011/03/13/japan-earthquake-and-tsunami-survivors-forage-fror-basic-supplies-115875-22987190/ http://dailyreckoning.com/surviving-a-societal-breakdown Article Directory: http://www.articledashboard.com creativemythology.blogspot.com/2011/03/lofty-matters-profiting-from-suffering.html Felix Columbidae, |
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