martes, 21 de mayo de 2013

ASSAD TALKS, RUSSIA WALKS. ASAD HABLA, RUSIA ACTÚA



ASAD HABLA, RUSIA ACTÚA

Pepe Escobar.  Mayo 21-2013

ASSAD TALKS, RUSSIA WALKS


Bashar al-Asad ha hablado, exclusivamente con el periódico argentino Clarín [hay una inmensa diáspora siria en Argentina, así como en el vecino Brasil). 

Viendo a través de la niebla de la histeria occidental, hizo algunas observaciones valiosas. El historial muestra que sí, que el régimen ha aceptado varias veces hablar con la oposición; pero la miríada de grupos “rebeldes” sin una dirigencia creíble y unificada, siempre se ha negado. Por lo tanto no existe un camino al alto el fuego que pueda finalmente acordarse en una cumbre, como la próxima conferencia en Ginebra de EE.UU. y Rusia

Asad tiene algo de sentido cuando dice: "Nosotros no podemos discutir una hoja de ruta con una parte si no sabemos quiénes son”

Bueno, a estas alturas cualquiera que observe la tragedia siria sabe quiénes son en su mayoría. Se sabe que el Ejército de Caníbales Sirios No-libres, perdón el Ejército Libre Sirio (ELS), es una colección variopinta de señores de la guerra, gángsteres y oportunistas de todo tipo cruzados con yihadistas de la línea dura del tipo de Jabhat al-Nusra (pero también con otros grupos vinculados a al Qaida o inspirados en él). 

Reuters tardó meses en admitir finalmente que los yihadistas dominan el show sobre el terreno [1]. Un comandante “rebelde” incluso se quejó a Reuters, “Nusra es ahora dos Nusras. Uno que sigue la agenda de al Qaida por una gran nación islámica y otro que es sirio con una agenda nacional para ayudarnos a combatir a Asad”. Lo que no dijo es que el grupo realmente efectivo está vinculado a al Qaida.
 
Siria es ahora el Infierno de las Milicias; muy parecido a Irak a mediados de los años 2000, muy parecido al “liberado” Estado fracasado libio. Esta afganización/somalización es una consecuencia directa de la interferencia del eje OTAN/CCG/Israel [2]. Por lo tanto Asad también tiene razón cuando dice que Occidente está avivando el fuego [que lo habrá de quemar] y que hoy solo está interesado en el cambio de régimen, sea cual sea el coste.

LO QUE NO DIJO ASAD 

No se puede decir que Asad sea exactamente un político brillante, porque desperdició una excelente oportunidad para explicar a la opinión pública occidental, aunque sea brevemente, por qué las petro-monarquías del CCG, Arabia Saudí y Catar, más Turquía, están interesados en incendiar Siria. Pudo hablar de que Catar quiere entregar Siria a la Hermandad Musulmana y Arabia Saudí sueña con una colonia que sea un “cripto-emirato”. Pudo hablar de que ambos están aterrorizados por los chiíes del Golfo Pérsico que albergan legítimos ideales de la Primavera Árabe

Pudo señalar la ruina absoluta de la política exterior turca de “cero problemas con nuestros vecinos”: un día hay una tríada de colaboración Ankara-Damasco-Bagdad, y al día siguiente Ankara quiere cambio de régimen en Damasco y se pone enfrente de Bagdad. Y para colmo Turquía se desconcierta al ver que los kurdos se sienten alentados desde el norte de Irak hasta el norte de Siria. 

Pudo detallar que Gran Bretaña y Francia dentro de la OTAN, para no mencionar a EE.UU., así como sus petro-monarcas marionetas, están utilizando la desintegración de Siria para perjudicar a Irán y que a ninguno de estos actores que suministran las armas y mucho dinero les interesan los sufrimientos del “pueblo sirio”. Lo único que importa son sus objetivos estratégicos.

MIENTRAS HABLABA BASHAR AL-ASAD, RUSIA ACTUABA

El presidente Vladimir Putin -perfectamente consciente de que las conversaciones de Ginebra están siendo descarriladas por diversos actores incluso antes de que tengan lugar– envió barcos de la marina rusa al Mediterráneo Oriental y ofreció a Siria una cantidad de ultra-modernos misiles Yakhont tierra-mar más una cantidad de misiles antiaéreos S-300, el equivalente ruso del Patriot estadounidense. Además Siria ya tiene misiles antiaéreos rusos SA-17

Entonces, atrévanse, cualquiera de vosotros, miembros de la banda OTAN-CCG, incluso dejando de lado a la ONU, a lanzar una mini-Conmoción y Pavor contra Damasco. O de instalar una zona de exclusión aérea. Catar y la Casa de Saud, son un chiste desde el punto de vista militar. Los británicos y Francia están seriamente tentados, pero no tienen los medios, o las agallas. Washington tiene los medios, pero no las agallas. Putin estaba perfectamente seguro de que el Pentágono comprendería su mensaje claramente

Y NO HAY QUE OLVIDAR EL GASODUCTO “DUCTISTÁN” 

Asad también pudo hablar de –¿Qué más?– el “Ductistán”. Le hubieran bastado dos minutos para explicar el significado del acuerdo del gasoducto Irán-Irak-Siria por 10.000 millones de dólares que se firmó en julio de 2012. Este nodo crucial del “Ductistán” exportará gas desde el campo South Pars de Irán (el mayor del mundo, compartido con Catar), a través de Irak hacia Siria, con una posible extensión al Líbano, con clientes confirmados en Europa Occidental. Es lo que los chinos llaman una situación en la que no se puede perder. 

Pero no para Catar y Turquía. Catar sueña con un gasoducto rival desde su campo North (contiguo al campo South Pars de Irán), pasando por Arabia Saudí, Jordania, Siria y finalmente Turquía (que se presenta como el centro privilegiado de tránsito de energía entre Oriente y Occidente). Destino final, una vez más: Europa Occidental. 

Como en todo lo que tiene que ver con “Ductistán”, el punto crucial del juego es dejar de lado a Irán y Rusia. Es lo que pasa con el gasoducto catarí, frenéticamente apoyado por EE.UU. Pero en el caso del gasoducto Irán-Irak-Siria, la ruta de exportación se origina en Tartus, el puerto sirio en el Mediterráneo Oriental que alberga la marina rusa. Obviamente Gazprom formaría parte de todo el asunto, desde la inversión hasta la distribución

Que no quepa duda: el “Ductistán” –nuevamente vinculado a circunvalar Rusia e Irán– explica muchas cosas sobre la destrucción de Siria.

EL ARTILUGIO DE PETRÓLEO DE LA UE PARA AL QAIDA 

Mientras tanto el verdadero ejército sirio –respaldado por Hizbulá– está recuperando metódicamente Al-Qusayr del control “rebelde”. Su próximo paso será mirar hacia el este, donde Jabhat al-Nusra se está beneficiando alegremente de otra metedura de pata típica de la UE: la decisión de levantar las sanciones petroleras contra Siria [ 3 ]. 

El bloguero de Syria Comment, Joshua Landis, sacó las conclusiones necesarias: Quienquiera que se apodere del petróleo, el agua y la agricultura, tendrá en sus manos a la Siria suní. Por el momento es al-Nusra. El hecho de que Europa abriera el mercado al petróleo impuso esta situación. De ahí la conclusión de esta demencia de que Europa esté financiando a al Qaida”. Llamémoslo el artilugio petrolero de la UE para al Qaida. 

El sudoeste de Asia –lo que Occidente llama Medio Oriente– seguirá siendo un campo privilegiado de irracionalidad. Tal como están las cosas en Siria, en lugar de una zona de exclusión aérea lo que en realidad debería establecerse es “que todos vuelen por la paz”, y cada cual y su vecino debería estar involucrado: EE.UU., Rusia, la UE y también Hizbulá, Israel y por cierto Irán, como ha subrayado con entusiasmo el Ministro de Exteriores ruso Sergei Lavrov [4]. 

Mucho más allá de la obsesión occidental con el cambio de régimen, lo que la conferencia de Ginebra podría producir es un acuerdo según la constitución siria que, a propósito, es absolutamente legítima, adoptada en 2012 por una mayoría de votos del verdadero y sufriente “pueblo sirio”. Eso incluso podría significar que Asad no fuera candidato a presidente en las elecciones programadas para 2014. Cambio de régimen, sí. Pero por medios pacíficos. ¿Permitirán la OTAN, el CCG e Israel que ocurra? No.
Notas:
(1) Insight: Syria's Nusra Front eclipsed by Iraq-based al Qaeda, Reuters, 17 de mayo de 2013.
(2) Organización del Tratado del Atlántico Norte-Consejo de Cooperación del Golfo-Israel.
(3) EU decision to lift Syrian oil sanctions boosts jihadist groups, Guardian, 19 de mayo de 2013.
(4) Russia says Iran must take part in proposed Syria talks, Reuters, 16 de mayo de 2013.

------------------  

HERE THE ORIGINAL VERSION EN INGLES:

ASSAD TALKS, RUSSIA WALKS
By Pepe Escobar. May 20.  http://www.atimes.com/atimes/World/WOR-01-200513.html

So Bashar al-Assad has spoken - exclusively, to Argentine daily El Clarin (there's a huge Syrian diaspora in Argentina, as well as in neighboring Brazil).

Cutting through the fog of Western hysteria, he made some valuable points. The record shows that, yes, the regime has agreed several times to talk to the opposition; but myriad "rebel" groups with no credible, unified leadership have always refuted. So there's no way a ceasefire, eventually agreed on a summit - such as the upcoming US/Russia Geneva conference - can be implemented. Assad makes some sense when he says, "We can't discuss a timetable with a party if we don't know who they are."

Well, by now everyone following the Syrian tragedy knows who most of them are. One knows that the Un-Free Syrian Cannibals, sorry, Army (FSA) is a ragged collection of warlords, gangsters and opportunists of every possible brand, intersecting with hardcore jihadis of the Jabhat al-Nusra kind (but also other al-Qaeda-linked or inspired outfits).

It took Reuters months to finally admit that jihadis are running the show on the ground. [1] A "rebel" commander even complained to Reuters, "Nusra is now two Nusras. One that is pursuing al Qaeda's agenda of a greater Islamic nation, and another that is Syrian with a national agenda to help us fight Assad." What he didn't say is that the real effective outfit is al-Qaeda-linked.

Syria is now Militia Hell; much like Iraq in the mid-2000s, much like the Western-imposed, "liberated" Libyan failed state. This Afghanization/Somalization is a direct consequence of NATO-GCC-Israel axis interference. [2] So Assad is also right when he says the West is adding fuel to the fire, and is only interested in regime change, whatever the cost.


WHAT ASSAD DIDN'T SAY

Assad is not exactly a brilliant politician - so he wasted a golden opportunity to explain to Western public opinion, even briefly, why GCC petro-monarchies Saudi Arabia and Qatar, plus Turkey, have the hots for setting Syria on fire. He could have talked about Qatar wanting to hand over Syria to the Muslim Brotherhood, and Saudi Arabia dreaming of a crypto-emirate colony. He could have talked about them both being terrified of Shi'ites in the Persian Gulf harboring legitimate Arab Spring ideals.

He could have pointed to the absolute shambles of Turkey's "zero problems with our neighbors" foreign policy; one day there's a triad of collaboration Ankara-Damascus-Baghdad, the next Ankara wants regime change in Damascus and routinely antagonizes Baghdad. And on top of it Turkey is puzzled to see Kurds emboldened from northern Iraq to northern Syria.

He could have detailed how Britain and France inside NATO, not to mention the US, as well as their petro-monarch puppets are using the disintegration of Syria to hit at Iran - and how none of these actors supplying the weaponizing and plenty of cash give a damn about the suffering of the "Syrian people". The only thing that matters is strategic targets.

While Bashar al-Assad was talking, Russia was walking. President Vladimir Putin - well aware that the Geneva talks are being derailed by various actors even before they happen - moved Russian naval vessels to the Eastern Mediterranean; and offered Syria a batch of ultra-modern ground-to-sea Yakhont missiles plus a batch of S-300 anti-aircraft missiles - the Russian equivalent to the American Patriot. Not to mention that Syria already has Russian SA-17 anti-aircraft missiles.

Now try, any one of you NATO-GCC gang, even bypassing the UN, to unleash a mini-Shock and Awe on Damascus. Or to install a no-fly zone. Qatar and the House of Saud, militarily, are a joke. The Brits and France are seriously tempted, but they don't have the means - or the stomach. Washington has the means - but no stomach. Putin was dead sure the Pentagon would read his message accordingly.


AND DON'T FORGET PIPELINE-ISTAN
Assad could also have talked about - what else - Pipelineistan. It would have taken him two minutes to explain the meaning of the agreement for the US$10 billion Iran-Iraq-Syria gas pipeline that was signed in July 2012. This crucial Pipelineistan node will export gas from the South Pars field in Iran (the largest in the world, shared with Qatar), through Iraq, towards Syria, with a possible extension to Lebanon, with certified customers in Western Europe. It's what the Chinese call a "win-win" situation.

But not for - guess who? - Qatar and Turkey. Qatar dreams of a rival pipeline from its North field (contiguous with Iran's South Pars field), through Saudi Arabia, Jordan, Syria and finally Turkey (which bills itself as the privileged energy transit hub between East and West). Final destination: once again, Western Europe.

As in all Pipelineistan matters, the crux of the game is bypassing both Iran and Russia. That's what happens with the Qatari pipeline - frantically US-supported. But with the Iran-Iraq-Syria pipeline, the export route may originate nowhere else than in Tartus, the Syrian port in the Eastern Mediterranean that hosts the Russian navy. Gazprom would obviously be part of the whole picture, from investment to distribution.

Make no mistake; Pipelineistan - once again tied up with bypassing both Russia and Iran - explains a great deal about why Syria is being destroyed.


THE EU OIL-FOR-AL-QAEDA SCHEME

Meanwhile, the real Syrian army - backed by Hezbollah - is methodically retaking strategic Al-Qusayr out of "rebel" control. Their next step would be to look east - where Jabhat al-Nusra is merrily profiting from another typical EU blunder; the decision to lift oil sanctions on Syria. [3]

Syria Comment blogger Joshua Landis drew the necessary conclusions; "Whoever gets their hands on the oil, water and agriculture, holds Sunni Syria by the throat. At the moment, that's al-Nusra. Europe opening up the market for oil forced this issue. So the logical conclusion from this craziness is that Europe will be funding al-Qaeda." Call it the EU oil-for-al-Qaeda scheme.

Southwest Asia - what the West calls the Middle East - is bound to remain a privileged realm of irrationality at play. As things stand in Syria, instead of a no-fly zone what should really fly is an "all fly peace" - with everyone and his neighbor involved; US, Russia, the EU, but also Hezbollah, Israel and of course Iran, as Russian Foreign Minister Sergei Lavrov has keenly stressed. [4]

Way beyond the Western obsession with regime change, what the already troubled Geneva conference could yield is a deal following the Syrian constitution - which, by the way, is absolutely legitimate, adopted in 2012 by a majority of votes of the real, suffering, "Syrian people". This could even lead to Assad not running for president in elections scheduled for 2014. Regime change, yes. But by peaceful means. Will NATO-GCC-Israel let it happen? No.

Notes:
1. Insight: Syria's Nusra Front eclipsed by Iraq-based al Qaeda, Reuters, May 17, 2013.
2. North Atlantic Treaty Organization-Gulf Cooperation Council-Israel.
3. EU decision to lift Syrian oil sanctions boosts jihadist groups, Guardian, May 19, 2013.
4. Russia says Iran must take part in proposed Syria talks, Reuters, May 16, 2013.
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domingo, 19 de mayo de 2013

QE and US BLACKMAIL ON CENTRAL BANKS KEEPS DOLLAR ALIVE



QE and US BLACKMAIL ON CENTRAL BANKS KEEPS DOLLAR ALIVE. 

14 Facts on Currency war: Case Japan-US shows that artificial appreciation” of the US$ is effective in the short run but deem to fail in the long run. The set-up of the Japan-China conflict plays a key role in the US strategy of blackmailing neighboring-clients and allies.


“THE US DOLLAR COLLAPSE AND JAPAN’S SHAM CURRENCY WAR: HIDDEN AGENDA BEHIND JAPAN’S KAMIKAZE QUANTITATIVE EASING”
Author:  Matthias Chang. Sat, May 18th, 2013

Matthias Chang (4M),- US$ dollars have been flooding the financial markets ever since Bernanke launched quantitative easing allegedly to turnaround the US economy. These huge amounts of US$ toilet paper are mainly in financial markets (and in central banks) outside of the United States. A huge chunk is represented as reserves in central banks led by China and Japan.

If truth be told, the real value of the US$ would not be more than a dime and I am being really generous here, as even toilet paper has a value.
That the US dollar is still accepted in the financial markets (specifically by central banks) has nothing to do with it being a reserve currency, but rather that the US$ is backed/supported by the armed might and nuclear blackmail of the US Military-Industrial Complex. The nuclear blackmail of Iran is the best example following Iran’s decision to trade her crude in other currencies and gold instead of the US$ toilet paper.

If  the United States were not a military threat and a global bully that can blackmail with impunity the oil exporting countries in the Middle East, the global financial system which hinges on the US$ toilet paper would have collapsed a long time ago.

The issue is why has the US$ not collapsed as it should have by now?  When we apply common sense and logic to the state of affairs, the answer is so simple and it is staring at you. But, you have not been able to see the obvious because the global mass media, specifically the global financial mass media controlled mainly from London and New York, has created a smokescreen to hide the truth from you.

Let’s analyse the situation in a step by step manner, and apply common sense.

1. The US is the world’s biggest debtor. The biggest creditors are China and Japan, followed by the oil exporting countries in the Middle East. With each passing day, the value of the US$ toilet paper is worth less and less. Like I said earlier, even toilet paper has some intrinsic value. It reaches zero value when everyone has to carry a wheelbarrow of US$ to purchase anything.

2. For the US$ toilet paper creditors, they cannot admit the fact that they have been conned by the global Too Big To Fail Banks (TBTFs) acting in concert with the FED and the Bank of England to accept US$ toilet papers. The central bankers of these countries have a reputation to preserve (not that there is in fact any reputation, for their so-called financial credibility is also part of the scam) and the political leaders that relied on them is in a bigger bind. How can the political leaders be so very stupid to trust these central bankers (who have stashed away in foreign tax havens huge US$ toilet papers as a reward for their complicity). This is the current state of affairs in plain English. They are having sleepless nights worrying if and when the citizens would wise up to this biggest con in history i.e. the promotion and acceptance of fiat currencies, the US$ being the ultimate fiat currency.

3. The global financial elites led by the FED know that this state of affairs is to their advantage and they are exploiting it to the hilt! They also know that no country or organization has the military resources to threaten the US to stop this global ponzi scheme which has been going on since 1945 and intensified since 1971 when President Nixon de-coupled the US$ from gold. The pound sterling is another story but, it is not relevant for the purposes of this analysis.

4. Additionally, and as a result of the above-stated scam, countries were led to believe and to accept the false economic theory that export generated growth (GDP) should be the foundation of economic development, as the United States having limitless US$ toilet paper has the ability and the means to purchase the global exports, it being the largest consumer market in the world. In the result, the world’s factories and their workers, including those in the developed world such as France and Germany worked their butts off to be rewarded with US$ toilet paper whose value is less than the paper and ink that produce it! The financial frolic went on for more than forty years and came to an abrupt and foreseeable end in the 2008 global financial tsunami.

5. When the party ended, the United States was up to her eyeballs in debts as a result of reckless financial speculation in the global derivatives casino and the consumption binge financed by housing mortgages. Debts must be repaid. But, the US has no means to do so. They cannot produce enough goods to earn the revenue to pay the debts because US manufacturing has been outsourced to the developing world – China became the world’s number 1 factory. So, the financial elite appointed helicopter Bernanke to lead the charge for the US and the UK to use the printing press (digital or otherwise) to print more US$ toilet papers to pay off the debt. In economic jargon, this is “monetising the debt”. It is outright fraud, but no one (i.e. central bankers) in his right mind would admit to this fraud as they would be hung from the lamp-posts if the truth is discovered as was the case when the Italian fascist leader Mussolini was hung by the Italian partisans.

6. Initially, central bankers confronted with this situation and having to face a restless populace embarked on a regime of competitive easing/ devaluation of their currencies. But, the price was horrendous. Inflation spiked in all these countries. But, this scheme of things did not work out as planned for the simple reason, the US$ toilet paper continued to be lower as a result of more QE by Bernanke. China realized the danger and adopted other means to overcome this situation, one of which was to enter into bilateral arrangements with her trading partners to finance trade in their respective currencies. Such agreements were entered between China and Japan, members of BRIC, Malaysia etc. This counter-measure was perceived as a threat to the continued dominance of the US$ toilet paper regime. In the result, Obama declared at the urging of the financial elites (he does not have the grey cells to think) a foreign policy shift – the Asia Pivot to prevent a further deterioration of US$ dominance.
7. When Japan entered the agreement with China, her behaviour was deemed unacceptable since Japan was under the nuclear protection of the US. Japan was caught between a rock and a hard place. It was expected that sooner or later the US would apply the squeeze on Japan to behave in a proper manner. Applying geopolitical strategies, the US towing South Korea along provoked North Korea by launching a military exercise which included flying B-2 bombers which are capable of carrying nuclear weapons. North Korea responded in the manner that was expected. Japan was exposed and in like manner reacted by seeking US protection. To muddy the waters and complicate the situation, the US engineered a I dispute between China and Japan over the sovereignty of the Diaoyu Islands. This was followed by the installation of a new regime in Japan by the election of the Prime Minister Shinzo Abe and the appointment of Haruhiko Kuroda as the Governor of the Bank of Japan (BOJ).

8. Now comes the mechanics of US counter-measures in shoring up the artificial dominance/value of the US$ toilet paper. Japan was ordered to do its part as a quid pro quo for being protected by the US’s nuclear umbrella. A new version of the Plaza Accord must be put in place – a “reverse Plaza Accord”.

9. Let me explain. In the 1985 Plaza Accord, the dollar was devalued to reduce the current account deficit and to help the US recover from the recession of the early 1980s. It was a managed devaluation and the exchange value of the Dollar versus the Yen declined by 51 per cent from 1985 to 1987 – reaching ¥151 per US$1 in March 1987. The dollar continued to slide till 1988. The effect of the strengthened Yen depressed Japan’s exports and brought about the expansionary monetary policies that resulted in the infamous asset bubbles of the late 1980s. The G-6 countries then gathered in 1987 in Paris to arrest the slide of the dollar and to manage and stabilise the international currency markets. The end result was the Louvre Accord. In the next 18 months the dollar strengthened to ¥160 per US$1.

10. However, in the current situation, the devaluation of the US$ toilet paper was the result of massive QEs so as to enable US to monetize her debts. However, for US to continue to monetize  her debts and have the world’s central banks agreement to continue to hold dollar reserves, the value of the dollar must appreciate, failing which the dollar would collapse, the US defaulting on her debts, as creditors would no longer accept US$ as payment. The trick was to artificially inflate the value of the dollar without arousing any suspicions.

11. In the 1970s, following the de-coupling of the dollar from gold by President Nixon, the dollar would have collapsed in like manner as it was not backed by gold. It became pure fiat money! The trick then was to create an artificial demand for dollar which would in turn raise the value of the currency. This was effected by the proposal of Kissinger to the Arabs that if they would dollarize their oil exports, the US would guarantee their safety and survival even from the threats of Israel. When the Arabs agreed to this arrangement, every country in the world had to buy oil in US$. Countries have to exchange their currencies into US$ to buy oil. This demand for US$ strengthened the currency and prolonged the US fiat money monopoly.

12. However, this option is no longer available presently as oil is now being sold in other currencies besides the US$. The petro-dollar is no longer in dominance. In any event, the continued use of petro-dollars would spike the oil price and this would be inflationary and detrimental to the US economy as well as the world’s economy in the present economic climate – i.e. deep recession. Another means must be used.

13. This is the reason for the sudden “shock and awe” monetary policy of the new Japanese regime of Shinzo Abe and Haruhiko Kuroda. My detractors will accuse me of indulging in conspiracy theories. But, the facts speak for themselves. I had said earlier, that the G-7 countries have collectively attempted to devalue their currencies but, it did not stem the slide of the US$ because Bernanke was increasing the intensity of QE since 2008. And the EU was not willing and or able to adopt a suicide policy of massive QE as Germany was well aware of such a risk having suffered the negative effects of hyperinflation. China would not go with the US and in fact together with fellow members of BRIC was adopting counter-measures to confront Bernanke’s QE financial weapon. That left only one country who can be compelled to do the US bidding, to commit Hara-kiri to save and or prolong the US$ toilet paper regime – Japan!

14. And so, Japan launched its sudden massive QE and the desired effect is that now the US$ toilet paper has artificially appreciated in value vis-a-vis the Yen and less so with other currencies. This cannot be disputed by my detractors because: On May 11, the financial elites of G-7 countries explicitly agreed with this kamikaze policy of Japan.

Koichi Hamada has also declared earlier that the target for this policy is to allow the dollar to rise to ¥110 per US$1 and this rise would be managed in a staggered fashion in small increments (step by step approach) thereby controlling the rate of inflation in Japan which would not be allowed to exceed the agreed target rate.

It is suggested that Japan can do this because it can utilize its huge dollar reserves of US$1.2 Trillion to manage the devaluation! According to Alan Ruskin, the global head of Group of 10 foreign-exchange strategy in New York at Deutsche Bank ASG, he said “I think we are opening up the door to look at 105 in the next few months and 110 by the end of the year …” and this surely must be interpreted to mean that Koichi Hamada’s strategy is definitely in play.

CONCLUSION
In conclusion, it is my view that such “managed artificial appreciation” of the US$ toilet paper while effective in the short run would fail in the long run because the fundamental issues of the US economy have not been addressed and resolved. Only real economic growth can reverse the dollar’s demise.

Seriously, would Bernanke stop further QE when the yen exchange rate reaches ¥110 by the year end? Has not Bernanke declared that QE would continue till 2015? And since Japan has drawn the Red Line at ¥110, can Japan risk further damage to its economy and continue to back-stop US beyond ¥110?

The US$ quadrillion derivative casino is the millstone around the US and the global economy, and as long as this is not resolved, the crisis would only get worse. Like water, after sufficient heat, the boiling point would be reached.

While I cannot forecast the precise date of the implosion, I am of the view that the end is near, sparked by a black swan event and then snowballed to its final devastation.
Matthias Chang via The 4th Media