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Copying Japan: the Big Banks Confess - Jeff Nielson

Copying Japan: the Big Banks Confess - Jeff Nielson
By Jeff Nielson 4 years ago 189664 Views 6 comments

Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.

March 16, 2016

Back at the end of 2008, Western central banks (led by the Federal Reserve) embarked upon the most radical, extreme, and simply insane monetary policies ever contemplated in our modern economic era as a supposed response to the Crash of ‘08. Zero-percent interest rates. “Quantitative easing.” Hyper-inflationary levels of money printing.

Many readers may not fully comprehend the level of insanity (and fraud) inherent in such extreme monetary policies, so further explanation will be provided. First of all, there is no such thing as “a 0% loan” (and thus a 0% interest rate). But don’t accept the word of this writer.

Just try engaging in some “0% loans” in your own financial affairs, and then see what happens when you report such transactions to the Tax Man. You will quickly be informed that your supposed “0% loans” are legally deemed to be sham transactions. The Tax Man would then immediately add that these supposed loans would legally be deemed to be what they actually are: gifts – and you would be taxed (and perhaps prosecuted) accordingly.

So-called “0% interest rates” and any “loans” made at that non-existent rate of interest are prima facie fraud . Thus we start from the standpoint that at the end of 2008, the Federal Reserve knowingly and willingly embarked upon a massive campaign of (fraudulent) sham transactions, which continued until near the end of 2015 and totalled in the many trillions of dollars.

The Federal Reserve, instead of lending out these trillions of its new funny-money (at a real/legitimate rate of interest), has simply been handing it all to Wall Street, for free, via a long series of sham transactions. That’s a lot of fraud.

“Quantitative easing” is even more overt fraud. It is literally a euphemism of a euphemism. What is quantitative easing (apart from being an absolutely meaningless phrase)? It is “monetizing debt.” What is monetizing debt? It is another euphemism, which is thus also absolutely meaningless. But what does it really mean?

“Monetizing debt” is when a government is so close to bankruptcy that it can no longer even borrow enough money to (temporarily) pay its bills. Thus the regime simply conjures more “money” – completely out of thin air -- and then uses this worthless funny-money to pretend to “pay its bills.”

Officially, we were told by our governments that this so-called quantitative easing was to “stimulate our economies.” Yes, it is undoubtedly more “stimulative” for an economy to continue to pretend to pay its bills than to declare bankruptcy. The entire Corporate media parroted this absurdity, proving yet again that this ( illegal) oligopoly is anything but “a free press.”

Then we have the actual rate of money printing itself. At the risk of boring regular readers, this must once again be reviewed for the benefit of newer readers. Below is the last legitimate representation of the U.S. monetary base (and the rate of money printing that has been occurring).

Subsequent to this, the chart, and now even the data itself, have been falsified, rendering newer versions of this chart deceptive at best. What this chart shows is the hyperinflation of a currency (the U.S. dollar), past tense.

This is a picture of a classic, parabolic exponential curve. In simpler terms, it is the mathematical representation of the phrase “out of control.” Directly implied by that phrase, and a basic principal of any such extreme, exponential function, is that “control” can never be regained. What is the result when any nation has lost control (past tense) of its money printing – in the form of an upward spiral? Hyperinflation.

The U.S. dollar is fundamentally worthless. Indeed, it is fundamentally worthless based upon several, separate metrics . Other Western currencies, which are now mere derivatives of the USD, are equally worthless. The day that “quantitative easing” began was the day that Western governments began feigning solvency via overt fraud.

However, we got more than just (extreme) actions by our central banks and the puppet governments beneath them . We also got promises – big promises. Originally, the central bankers acknowledged the fact that their “policies” were the most extreme monetary voodoo ever perpetrated by any central bank.

In acknowledgment of that fact, we were given firm and solemn promises from all the central banks (and all their crooked foot-soldiers) that an “Exit Strategy” would commence immediately, in early 2009. Interest rates would quickly be “normalized.” The money printing would quickly be curtailed, before the hyperinflationary spiral in the previous chart could ever materialize.

But we got more than that. Even more emphatically, the central bankers and puppet politicians all puffed out their chests and proclaimed that they would never, ever “copy Japan.”

All that they were waiting for were “signs of economic stability”, so that (supposedly) it would then be safe to disconnect this economic defibrillator from the hearts of all Western economies. Did we see such signs? Supposedly.

In early 2009, the U.S. government, the Federal Reserve, all the charlatan economists , and the Corporate media proudly crowed in unison that the United States had begun its Recovery. Since then, this same flock has continued to chirp regularly about the “strengthening Recovery.” Yes, the U.S. economy has kept recovering, and recovering, and recovering some more .

Did we get the Exit Strategy? No.

The United States kept its interest rate at a (fraudulent) “0%”. Understand the significance here. As B.S. Bernanke was perpetrating his infamous “helicopter drop” of funny-money, to a hyperinflationary degree, every last penny of this unimaginable mountain of funny-money was being handed to the Wall Street crime syndicate for free.

If we took every lottery in human history, added them all together, and then multiplied that by 100, it would still be far less than the “lottery prize” which B.S. Bernanke handed to Wall Street, tax-free. But it gets worse. In our era of ultra-fraudulent “fractional-reserve banking,” each member of the Big Bank crime syndicate is allowed to “leverage” all of its free $trillions in funny-money by a ratio (i.e. multiple) of greater than 30:1.

This represents an orgy of monetary fraud of virtually infinite size , and we were promised (in 2008, and repeatedly after that) that it would never, and could never, happen, because we would never “copy Japan.” Indeed, the Western central bank cabal did not (merely) “copy Japan”, but went literally orders of magnitude beyond Japan in its monetary debauchery and fraud.

Leap forward to March of 2016 and the amusing quasi-confession from one of the members of this Big Bank crime syndicate: HSBC. Of course, readers still need to pull out their translation gear, since even this quasi-confession is twisted almost beyond recognition by the propagandists of CNBC, starting with the headline.

World copying Japan’s slow-puncture economy: HSBC

Machiavellian. What is another way of characterizing an economy, other than as a tire that will soon run out of air? In a death-spiral . Copying Japan’s economic/monetary death-spiral. The “world” is copying Japan’s death-spiral. Wrong.

Does the “world” all have their interest rates at near-zero, or lower? No, just the Corrupt West. Is the “world” all engaged in quantitative easing? No, just the corrupt West. Has the “world” all hyperinflated their currencies to worthlessness? No, just the Corrupt West. The Corrupt West is copying Japan’s death-spiral – after these regimes (and their central bankers) promised us again and again that this would never, and could never, happen.

The propaganda continues:

The global economy appears to be trapped in Japan-style stagnation, HSBC’s high-profile senior economic advisor said on Tuesday, adding his voice to the chorus of economist warnings.

What is the only non-Machiavellian aspect of that statement? That, once again, we are dealing with “a chorus,” i.e. a propaganda machine. Since we have already established that it is (laughably) inaccurate to lump together the Corrupt West and the Rest of the World, let’s deal with these two groups separately and then reconsider the propaganda above.

Is the Corrupt West “trapped”? Yes, if you dig a great, big hole in the ground, and then you jump into that hole, you will be trapped. What is missing from this Revisionist version of events from HSBC and CNBC is that the West’s “trap” was both voluntary and self-created. If you deliberately choose to copy a 25-year failed economic experiment, it doesn’t take a renowned psychic to “predict” the result. Even an economist should be able to do so.

Doing what Japan did, except to a much greater (and much more fraudulent) degree didn’t change the probability of the outcome at all. It merely reduced the time it would take the Corrupt West to duplicate Japan’s economic suicide, and reduced that time rapidly. It’s now taken Japan more than 30 years to get to where it is today. It took the Corrupt West (and their psychopathic central banks) less than 1/3 rd that amount of time to do twice as much damage to their own economies. And now we get a partial confession.

What about the Rest of the World? Is it “trapped”? Yes, but the trap is of an entirely different nature, beginning with the fact that the “trap” which has ensnared these other nations was not self-inflicted. Rather, the nations of the Rest of the World are victims of the Big Bank crime syndicate.

How does (how did) the bankers make the hollowed-out, bankrupt, fraud-saturated economies of the Corrupt West look slightly less putrid and cancerous? A Reverse-Beauty Contest. This crime syndicate has devoted much of its energies over the previous five years systematically sabotaging virtually every other economy on Earth.

The primary weapon of the One Bank crime syndicate as it has engaged in this economic terrorism is currency manipulation . This is not a “conspiracy theory.” It is a conspiracy fact, as these terrorist Big Bank tentacles were recently convicted of serially manipulating all of the world’s currencies, with this particular Big Bank crime-conspiracy documented dating back to at least 2008. Does that year ring a bell?

During that interval, India experienced a “currency crisis.” Russia experienced a “currency crisis.” Brazil experienced a “currency crisis.” South Africa experienced a “currency crisis.” Now even China is experiencing a “currency crisis.”

These convicted currency-manipulators have created a “currency crisis” in 100% of the “BRICS” economies, which are supposedly the world’s strongest and most powerful economies outside of the Corrupt West. Imagine how easy it was for these economic terrorists to create “currency crises” in lesser economies all around the world.

Have we gotten a “confession” to all of that? No. That would be far too much truth to ever emanate from either the Corporate media or the Big Bank crime syndicate. For today, all we have gotten is a partial confession that all of the West’s central bankers and all of their puppet politicians have done what they promised that they would never, ever do: copy Japan.

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

Dr. Keith H. Kerr 4 years ago at 10:21 AM
Jeff - may I please call you "The TRUTH DOCTOR?" because you tell it like it is in spades! I give you a 10 star plus as you try to educate people to wake up & face reality. Don't be fooled by the elitist crooks of the world. We all know that sooner or later the TRUTH always comes to the top & is revealed.
Keep up your excellent analysis & explanations.
James Reoch 4 years ago at 12:50 PM
Also I would say an excellent article. Could you elaborate on the specifics of currency manipulation ?
Jeff Nielson 4 years ago at 5:38 PM
Thanks for the support James!

Currency manipulation, like all forms of market manipulation is now child's play:


It's the Pied Piper -- computerized. All of the world's markets are DROWNED (literally) in so-called "HFT trading". Most of the "traders" all now use derivatives of the One Bank's Master Algorithm, and then are simply led around by the nose.

"HFT trading" (i.e. the computerized manipulation of all markets) took over, completely, by around 2011. Since that time, we haven't had markets, just a 24/7 price-rigging operation -- in all (of what used to be) markets.
James Reoch 4 years ago at 3:45 PM
Thanks Jeff. Could you connect the market fraud to the actual monetary exchange rates. For example , does the World Bank set the currency exchange rates based on market manipulation. ? Thanks.
Jeff Nielson 4 years ago at 6:41 PM
James, manipulation of almost any market has now been reduced to the simplest of processes, thanks to the omnipotent, manipulative capacity of the bankers computer-algorithm trading, which now dominates ALL trading in all markets.

Manipulating any form of algorithm process is utter simplicity, providing you control two parameters. YOU get to supply the algorithms that are used by all traders. YOU supply all the data which is processed by these algorithms.

The bankers (and their paid lackeys) WRITE all of these algorithms. The Corporate media (one of the One Bank's tentacles) provides control of all data -- along with the "statistics" produced by our corrupt governments.

If you would like two GENERAL examples of this process, these were explained in previous commentaries:


I was able to describe the manipulation process in detail in those cases, because the manipulation was/is particularly transparent. To the best of my knowledge, there is not a similar degree of transparency in currency trading.

So I can't DESCRIBE precisely how they manipulate currencies. I can only tell you:

1) They manipulate ALL markets (of any importance).
2) They have been CONVICTED of manipulating all these currencies.
3) Nearly all of their market manipulation is now done via algorithms.

Webej 4 years ago at 9:07 PM
Your explanation of the fraud (sham transactions) was very good.
Too bad that you haven't yet dropped the word counterfeit to bring the same lucidity to the explanation of QE, etc.

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