kathaksung
365. Low interest rate and the role of Japan
Fri Jan 13, 2006 15:04
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365. Low interest rate and the role of Japan (12/17/05)

Federal Reserve raised the bench mark rate to 4.25% at the purpose to poke off the bubble of housing market. The later the bubble breaking off, the severe the economy will be hurt. But what troubles Greespan is his operation doesn't work. The 30 years mortgage rate stand firmly at around 6.3%. Because main factor which influence the 30 years fixed mortgage rate, the long term bond rate keeps in low. The 10 years US treasury note is around 4.5%. The latest rate on 12/16 is 4.44%. It's only a 0.19% difference between the interest rate of 10 years bond and Federal overnight rate. If the ten years treasury note stays at that level, then when Federal Reserve changes the overnight rate to 4.5% next month, the short term interest rate will equal or pass over the 10 years long term rate. Is it absurd?

This phenomenon is created by Feds. (D.O.J.) They drove two big buyers to invest on US treasury note in large scale. Thus to keep the long term bond rate low which eventually leads to a low mortgage rate. Because Feds (FBI and DEA) hold a lot of real estate property. Why they don't retreat from this market? Because my case haven't finished. It's also why there is an intensify day to day persecution on me these days. The economy situation is worse and worse for them.

Who are the two big buyers? China and Japan. Since there is a historical deficit in US current account, dollar faces a devaluation. It's very unwise to invest on US treasury note at this time. Then what makes China and Japan to do so?

There is no free lunch in the world. D.O.J. bribed the two countries to do so. The payment to Japan is its sovereignty.

Japan was a defeated country in Second World War. It is still under occupation of US army. Though Japan is an economy power, it is a political pygmy. Especially in military. Probably it was the only one suffered from atomic bomb. Its military re-build is tightly controlled by US. Now the restriction on Japan are released gradually.

1. On 9/10/2004, Japan officially declared its Navy found a nuclear submarine invaded its territorial waters. On 9/12, Japanese government confirmed it was a Chinese nuclear submarine. Koizumi's government lodged a diplomatic protest and demanded an official apology. It was contrary to the restraint attitude Japanese used to have. Media said the same water had been intruded before by Chinese submarines. Japan never complained. From military point, army used to keep silence at such events to avoid exposing its anti-sub ability. Then what made Japan start a high profile conflict with China? D.O.J. was behind it.

I alleged so because on 9/9/2004, a young anti-Japan writer was found dead in her car. Iris Chang, famous for her book "The rape of Nanking", was said "suicided" by a gun shot. Despite female rarely suicided with gun, there was no motive for Iris Chang to finish her life at 36. She was a "woman in supreme control of her successful, hectic, perfect life: bestselling author, wife of an engineer husband, mother of a young son, and spokeswoman for a growing movement to seek reparations from Japan for World War 2 atrocities." (Mercury News, 11/11/04) She was writing another book about the Japanese in Philippine in World War 2 when she died.

Of course, if it was done by Feds, they prepared an explanation. Media started a wave of reporting that she had depression which "few had known". Maybe when there was no available motive, "mental illness" is the best outlet. She was said left a "will" for her husband before her death. The note was computer printed.

Media also reported many people didn't believe the "suicide". If successful people such like Fiorina was just selected to be HP's CEO, or Arnold Schwarzinneger was just "elected" Governor of California, Or George Bush in May 2003 when he said "mission accomplished" in a carrier, would they suffer a "depression"? Some people suspected it was done by Japanese rightist. They were wrong. They don't know the principle of game. It must have been done by its own intelligence. Iris Chang, died as part of a payment to encourage Japan to stand up against China. Next day after Chang's death, Japan started a diplomat conflict with China. (to be continued)

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