- It's nearly twenty years to the day, and here we are
in 2004 facing the same scenario we presented to the government originally
in early 1983: Japan is out to benefit itself at the expense of the U.S.
and now the EU.
-
- Here's the story. In Recapturing America we explain what
in fact was the actual case in 1982-1986. America straddled with high interest
rates sought to lower them without further sabotaging the U.S. dollar.
Who came to rescue to the glee of Bush 41 who was then Vice-President:
Japan? However, we warned the Reagan administration that there was a dark
side to Japan's aid, and it took Reagan/Bush 3-4 years to acknowledge it.
Japan lowered its dollar to not only help the US but primarily to extract
vital U.S market share. With a cheap yen, Japan was able to penetrate the
full spectrum of U.S. markets, undercut and eviscerate U.S manufacturers,
to lay the foundation allowing it to unjustly become the economic juggernaut
it subsequently became. When the Reagan/Bush administration then sought
in 1986 to raise the Yen and lower the dollar, Japan was ready. They used
the soaring yen to convert them back into U.S. dollars to buy America.
It then took another decade to straighten it out. This is outlined in Bush's
Mission: Expecting the Second Platform of Moral Outrage. www.senderberl.com/BMI.PDF
(pages 3-4).
-
- Now, on Friday we saw ALL the foreign currencies rise
against the poor U.S. job data, but who was out there selling the Yen,
$20 billion of it, after selling trillions this past year to "support
the dollar?" Yes, the Bank of Japan. SenderBerl has analyzed that
the Japanese are targeting primarily the EU market and with a strong euro
and weak yen they aim to do the same to the EU as they did to America.
However, the spill over of the Japanese game plan will take out whatever
central industry in the U.S. was not undermined in the 80s.
-
- http://www.miami.com/mld/miamiherald/business/national/8
117317.htm?template=contentModules/printstory.jsp
-
- Posted on Fri, Mar. 05, 2004
-
- GM's CEO Criticizes Japan's Yen-Selling Interventions
- Kyodo News International, Tokyo Knight Ridder/Tribune
Business News
-
- Mar. 4--NEW YORK - Rick Wagoner, chief executive officer
of General Motors Corp., criticized Japan's recent efforts to lower the
value of the yen, saying it gives Japanese carmakers an unfair pricing
advantage on each car they sell in the United States.Wagoner said in an
interview published Thursday in the Wall Street Journal that the Ministry
of Finance's purchases of billions of dollars in international currency
markets lower the cost of Japanese-made engines and other components that
companies like Toyota Motor Corp. use in cars assembled at their U.S. plants.
"If the currency is 10 percent stronger than it should be, and you're
talking about a $25,000 vehicle, it's hundreds to thousands of dollars,"
Wagoner said in the interview. Wagoner made the remarks after Federal Reserve
Board Chairman Alan Greenspan called Japan's currency interventions "awesome."
In a speech Tuesday at the Economic Club of New York, Greenspan issued
a warning against Japan's continued massive currency market intervention
aimed at stemming the yen's appreciation against the dollar. "The
current performance of the Japanese economy suggests that we are getting
closer to the point where continued intervention at the present scale will
no longer meet the monetary policy needs of Japan," Greenspan said.In
January and February, Japan's Ministry of Finance spent $100 billion in
currency markets, mostly to buy dollars.Wagoner said these purchases and
others in 2003 "artificially lower" the value of the yen against
the dollar, and tilt the playing field in the U.S. in favor of Japanese
carmakers.
-
- So if the Bush administration was out there to keep the
dollar low to bolster American business then are they going to take the
same tactic and abuse heaped upon them by Japan in the 1980s?
-
- We trust not.
-
- So unless the Japanese Yen starts to climb, you can expect
to see GM and other domestic US manufacturers in international markets
start to crumble in market price.
-
- Another key dynamic exclusive to you from SenderBerl.
-
- When the Japanese are selling Yen in the billions and
trillions for dollars who is buying the Yen?
-
- Our perspective is that Japanese are playing a shell
game here. We believe Japanese conglomerates are buying the Yen with both
fists and using dollars extracted from US business operations (including
low cost loans from US banks). Thus they are moving floundering dollars
into ultimately strong Yen, which if 1982-1986 is being replayed, will
become strong again when expanded EU market share is achieved and the sideshow
will be a US dollar looking for a grave marker.
-
- Perhaps Bush wants to blame the Japanese for the collapse
of the U.S. dollar and U.S. economy. If Bush 43 allows this to happen then
the last of US businesses not compromised by Japan in the 80s will now
be compromised 20 years later.
-
- Thus, if the euro rises, the Yen had better rise too.
The best investment the Fed can make and we believe we all can make is
to buy the Yen to help our country. The Yen should at minimum from our
assessment be at par with the U.S. dollar at this point of time and thus
we have taken our position for patriotic reasons and to potentially profit
at the same time.
-
- When we read that the Japanese government is selling
Yen we get angry when the reports don't better indicate who is buying when
Japan is selling. The speculators are riding off Japan's economic strategy,
so they are not buying but selling yen and thus helping the Japanese ploy.
Thus you can't accept that the pros are buying Yen when the Yen is falling
based on Bank of Japan intervention. We believe the buyers are Japanese
international conglomerates. They laughed at us once. We don't want to
see it again. We have enough problems already.
-
- Full Disclosure: Sender, Berl & Sons Inc. is long
the Yen
-
- Past Success is no indication of future success.
-
- Investing in futures and derivatives is subject to risk
of serious loss of capital
|
