Open letter to the good people of Japan, revisited.

Dear Good People of Japan,

I want to reach out to you for a second time in order to assist with your coming awakening.  Please refer to my first open letter to you which was written in August of 2011.  In that letter I explained to you how your export machine capability was borrowed and not earned.  I used mighty Toyota Motors (ticker: TM) as a primary example.  I wrote:

"Toyota is a great company but it was built on unsustainable debt and as deflation takes hold there will be little to economically distinguish it from General Motors in the USA. 

How can Toyota be in trouble if it makes such good cars?  If you are asking this question it shows that you don't understand economics.  The question is, how much debt does Toyota have and can it afford to pay it?  IF the debt is too high then it proves that Toyota's manufacturing capacity was borrowed, not earned.  Borrowing to overproduce is the sin of every exporting nation in the world that is foolish enough to believe that exporting is a sustainable profit generation mechanism.  

Like fractional reserve banking and fiat currency, it appears to work for a number of years but it eventually proves to be an unsustainable scam.  The scam of exporting as a mechanism of wealth generation is only made possible by the vendor finance scam....The only fundamentals you need to know about Toyota right now are that they have $157 B-B-Billion in debt (and growing) and only 45 billion in cash according to Yahoo finance.  When I was telling people about the coming demise of TM a couple years ago it only had $125 bn in debt.  So it is accumulating debt about as quickly as the Japanese government itself. "

While the EW chart I provided back then for TM had an 2nd wave model that did not foresee the short term distortions of Prime Minister Abe and so called Abenomics, I assure you that he did not prevent anything, he only kicked the can down the road and made the coming collapse worse that it otherwise would have been.  Nowhere is this more visible than in the current balance sheet summary for TM.  Instead of 157bn USD debt and $45bn cash, TM is now sporting an even more desperate $162bn debt and $33.2 bn cash.  That's a net LOSS of $18 bn in less than 3 years despite all the hard work of the Japanese labor force during that time:

 

 What is implied by all of the above now needs to be said directly:

• You are working your asses off but are being pulled backward by a force that is larger than you, larger than your government.  It is the deflationary force of a pump and dump money supply whose largest component, that of credit/debt, is now peaking and even declining in some areas.  This force does not plateau.  Once the dump is on, deflationary forces only accelerate.
• This force is larger than all governments of the world combined.  It can be and has been distorted (and made ultimately worse) but it cannot be changed.  Just as a supermassive star distorts space while it is burning brightly, once its energy source runs out it turns into a body that is a tiny fraction of its old size but with all of the prior mass.  The result is a black hole which sucks in anything around it. The energy source of Japan's (and the rest of the world for that matter) coming black hole is debt.  Once the the global players lose the ability to borrow more from each other, starting with weakened players like Japan, the debt-driven economies will shrink to a fraction of their former sizes but the debt will remain and servicing that debt sucks in any new value that you produce like it was an economic black hole sitting in your living room.  You can already see the mighty TM losing net value to this unstoppable force.
• A collapse of historic magnitude is already baked into the pie.  It is going to happen, period.  History shows that the first to default get out the cheapest even though it is never painless.  The pain will signify healing.  Your politicians will oppose this because debt is how they retain power over your lives.  Debt is how they buy and pay for complicit accomplices in your enslavement.  Debt is the life blood of the elite.  If you are working like a robot and not getting ahead, where do you think the economic value of your labor is going??  Thin air??  No, dear friends, it is going into the pockets of the ruling elite who do not work for a living.  They control the corrupt, fraudulent money supply and so they control you.  Through the fraudulent money supply they control us all.
• You must not fear the coming collapse, you must embrace it.  It is no different than hosting a large dinner party at an exclusive restaurant.  You are drinking, eating, enjoying but the bill is quietly escalating.  At the end of the meal you will get the bill.  The only difference is that you did not get invited to this party. It was an is a party for the money elite.  You did all of the work, you produced all of the consumables, but they got most of the benefit and you will get stiffed on the bill because slaves don't get paid.
• The mechanism of our enslavement is nothing more than a corrupt money supply made up of fiat currency and fractional reserve banking.  This is is how they have stolen your labor and that of all workers in the world.  Abe does not work for you as you think he does.  He works for the money elite of the Japanese branch of the US military industrial complex. He is handed his assignments and he dutifully carries them out.  When will you wake up to this fact that your politicians have sold you out?  Mark-san and Patsy-san are alive and well and living in Japan.
• There is only one way to escape the life-stealing effects of an economic black hole of debt: DEFAULT.  The sooner the better. Default and then re-cast your money supply as an honest, gold backed on which is fully audited on a regular basis by the common man, not the foxes who currently guard your hen house.  
• Make fractional reserve lending illegal.  
• THIS IS NOT A CURE FOR PAST MISTAKES!!!  It is only a cure for future ones.  Doing as I suggest is the equivalent of the waiter walking up to the partying elite, telling them that the party is over, and requesting to receive the bill.  You will be paying this bill, not them.  Stop them, right now, from consuming more based on debt if you have any collective common sense at all.
• Your economy will collapse as a result but a collapse is already baked into your future, period, so you must not fear it.  The fancy meal has already been eaten.  You did not have the understanding to stop the elite from setting the table and partying down on your tab.  Your penalty is to suffer a period of great economic distress.  But you will work through it quickly if you heed my advice.
• Your exports will collapse as a result.  But with all due respect to the ruling elite, WHO FUCKING CARES?  Do you live and work in order to export things to other people or do you work in order to provide for your own living needs?  The "we have to do exports" mantra is a total scam!  The only true value of exports is for diversification of consumption and NOT as sustainable economic stimulus.  It is simple math that not everyone can be a net exporter!  Export based economies are the big lie from the oligarchs.  You do not need exports in order to have a job.  There is work enough for everyone just taking care of your own people's needs.  The only ones that care about exports for the sake of exporting are the money elite.  You do not need someone to provide you a job.  Just start creating something of economic value on your own and others will seek to trade with you.  This is how you benefit from your own labor.
• Your corporate and political leaders do not want this party to end because they know you are paying the bill.  They know you are ignorant of this fact and they want to screw you to the hilt as long as you remain ignorant of it.  They are not going to let you off easily if you allow them to stay in power.  They will try to distract you with partial truth mixed with outright lies. They will try to lead you into war.  Stop letting Dear Leader Abe whip up nationalism and militarism against China.  Let those old wounds heal. War is Hell and war is coming to you and your families if you do not heed my advice.  The new China will not be a military pushover like the pre-industrial one was.  You will not be fighting farmers with pitchforks this time and you cannot count on the USA to defend you because we are already beginning to stand down our global military presence (not because we want to but because the money supply is contracting).  Throw the bums out right now and then replace them with people who understand Austrian economics, the economic power of freedom including truly free markets that are controlled by honest money.  Within 5-10 years the collapse will be fading into your memories (just like it did for Iceland).  
• WHY, HOW???  Here is the dirty secret that your "leaders" are not telling you: your debt is stealing away the earnings power of your labor using the scam ridden money supply.  This is how you work and work yet lose ground.  With hard work is supposed to come progress but you are not progressing because the economic value of your current labor is being diverted not to current consumption and current prosperity but to make the payment on someone else's past consumption and party fun.  
• You have to default on that or you will live another full so called "lost generation".  The best, easiest default is to simply default on all Yen based deals, shut that corrupt Yen based money system down completely, and re-start with something new like an electronic version of bitcoin (I like the names SuperYen or Yen++) which is fully backed by gold and audited on a regular basis to ensure that nobody adds more bitcoins to the float without adding more gold to the vaults. 
• Once you default on the past and make things right for the future, your future labor will add up very quickly and prosperity will be amazing.  This is the bright light at the end of the dark tunnel that your leaders do not want you to see because it means that they and their masters will get cut out of the free lunch they are enjoying on the back of your labor.

Again, going along with current policies of current leaders is not going to get you out of your mess.  It is often attributed to Einstein that doing the same thing over and over again and expecting different results is the very definition of insanity.  You must remove these foxes from the area around your productive hen house if you ever want to receive any of the future eggs.

What is at stake here is much bigger than you might imagine.  The entire historical culture of Japan is in grave danger of being wiped out and replaced with a new world order.  If Japan cannot decide to just heal itself from within then "help" will have to come from outside but such help will come with strings attached, many of which will require Japan to give up ever larger pieces of its sovereignty.  If you let them, they will invade your country, eliminate your traditions, eliminate your religious beliefs, etc. because these are the things that hold a people together.  

They know that united you stand, divided you fall.   They want you to be full time block head workers for them, not economically informed and scam-aware individuals working for your own benefit and for your own prosperity and freedom.  

Still don't get it?  The poster lower left is real propaganda material for the EU that shows block head workers being building blocks for the new globalist empire.  There are no national identities in those blocks; that is contrary to the goal of the architects of global domination.  Wake up soon or Japan as you know it will forever cease to exist.  These are the real stake in play here.

Observe how  that poster shows a bunch of block headed adults who have been indoctrinated into a false belief system which is run by the money elite.  They are all working together to build a strange looking building and their slogan is "Many tongues one voice".  In other words, no more individuality, no more national pride, no more cultural tradition.  The building in the poster looks like a near literal copy of the Tower of Babel, shown in a religious painting upper right.  The EU parliament building, lower right, looks suspiciously similar to the tower of Babel.  Add it all up for yourself and see what you get.  Again, that poster is official material from the EU.  They have indited themselves by producing it.

Notice anything strange in the poster above?  The only figure with a round head is the child because it has not been indoctrinated into the con yet.  But mamma has and so baby soon will be...


I would be remiss if I didn't include an updated EW model for the impending decline of TM shares.  TM is now sporting a massive declining double top.  It is economically weaker than the last peak and the competition is stronger.  While the breakdown is not confirmed yet, the odds of a higher high in the current, highly leveraged environment are very slim.

Good luck to you, good luck to us all.  But the best luck will be found not by hoping for it but rather by waking up and making our own luck.  I've given you the blueprint for this.  Now you will have to show if you are indeed brave and industrious enough as a people to build a new future for yourselves, one that you are in control of instead of the globalists.