Thursday, December 30, 2010

Heratri Topics Vol.2 "Who Saved Bernanke and Who saved the World?" ~by Sohken Kobayashi

    The world economy certainly stood on the cliff in October, 2008.  In its previous month, September, the U.S. investment bank, Lehman Brothers, went bust and the U.S. major insurance company, AIG, was also about to go bust, but was saved with a massive capital injection from the government, namely it became “nationalized” at the very last minute.  The world economy indeed escaped failing by a paper-thin margin.  Later, Ben Bernanke, Chairman of the FED or the Board of Governors of the Federal Reserve System, said in an interview that October was absolutely critical and we were about to fall into another Great Depression.  The Lehman shock reminded us all of a nightmare of September, 1931, that is, British pounds’ withdrawal from the gold standard system and its following ten-year severe depression.
    However, that nightmare did not come true again.  People believed that this was attributed to hard work of Bernannke and his team members as well as to some luck.  This was partially right.  But the truth to be told, one man defended the embankment of the global economy from collapse.  Most of us are unaware of it.  They do not know about him.  But to the people like me who know the truth, this man was like Mozi in the ancient China.
    One time, Mozi’s home country was put in a crisis of war with its neighboring country.  If the war began, his country seemed to have no chance to win.  He was neither a king nor a prime minister.  He was merely one of the pundits who did not have any authority or responsibility.  Although not be asked or recognized by anybody, however, he went to the enemy capital for himself alone and concluded very tough negotiations successfully.  Certainly he saved his country from the brink of fall.  But later on his way back to a home town, Mozi was given a despised laugh by a farmer whom he ran into, saying, “Hey, you silly old man!”  The farmer was no way aware of the fact that this silly old man saved lives and fortunes of his family.  Thus the same peaceful days continued for the following days just like the days up until that time. 

Bernanke Shot All the Bullets
    What I am describing here, regarding what happened in the U.S. and Europe in 2008, is mainly based upon In FED We Trust by David Wessel, and partly upon On the Brink by Henry Paulson, former Treasury Secretary.  Wessel is an editor of Wall Street Journal, having a weekly column.  He is also a  journalist who won the Pulitzer Prize twice.
   September in 2008 was in fact a horrendous month.  Only two or three days after the Lehman Brothers’ collapse, AIG was about to blow up.  AIG was one of the leading insurers in the world, but it was developed into a huge hedge fund.  Its dubious bonds such as CDS or credit default swap became toxic.  But financial institutions across the globe owned quite a lot of them so that if AIG had gone bust following the failure of Lehman brothers, it would have dealt a devastative blow to the global financial system and done irreparable damages to it.  Presumably Bernanke, Paulson, Timothy Geithner, the then president of the New York Fed and current Treasury Secretary, worked tirelessly day and night.  However, a real crisis or bomb was actually coming along in October.

    As above-mentioned, European banks also aggressively purchased the problematic bonds such as sub-prime
loans, which drew attention from the world in the 2008 crisis, and various derivatives.  So, toxic substances of the poisoned-cake-like financial products had been already circulating in their bodies.  As this was proved true, a run on a bank took place in UK for the first time in 100 years.  A whole nation of Iceland virtually collapsed financially in early October.  And Irish government was also desperate to adopt a forbidden measure, namely 100% government guarantee for deposits in Irish banks in order to secure money flow or capital inflow in the country.  Astounded neighboring countries such as Germany rushed to similar measures to counter the Irish one, preventing the outflow of the deposits from German banks.  In such a way, European banks fell into a chaos.

    In early October, the U.S. congress approved the well-known 700-billion bill of TARP or Troubled Asses Relief Program, although the Lower House rejected it once.  U.S. government set up a scheme to bail out U.S. financial institutions by infecting an enormous amount of taxpayers’ money into the system.  But when the fiscal year closed, we found that a quarter of the FED-injected money was actually used to save and secure European banks.  This shows how critical the Europe situation was.  These are the facts behind the initially-quoted remark by Bernanke:  “October was absolutely critical.”
    However, it seems to me that he did not talk about everything.  He is a former professor of Princeton University and a specialist of the Great Depression in the 1930s, having a full knowledge of the history of those days.  I suppose he should have known better than he said.  From a historical point of view, a true crisis or bomb was surely not removed yet.

What Really Brought About the 1931 Tragedy?

    In and around 2008, sub-prime loans and other types of toxic bonds spread out in the global financial system in a finely meshed pattern.  “The toxic bonds were too complex to have Bear Sterns fail,” said one expert who was involved in the bankruptcy of this institution a year before Lehman’s fall.
    Suppose one core bank of some emerging economy happens to heavily rely on the toxic bonds, and one European country happens to have a high exposure ratio to that emerging market.  If the bank of the emerging country fails, this developed European country would be immediately put in a serious trouble, and thus the entire financial system of the world would be plunged into a chaos.  In actuality we witnessed this happened in autumn last year, when the bubble burst in Mid-East Dubai and its development corporation went bust.  People were scared of the crisis of European financials, because they had huge fiscal investment and loans in Dubai.  European currency, Euro, was on the verge of significant drop.  In other words, European economy as a whole was about to be harshly damaged. 

   This is the way the Great Depression began in 1931.  The Wall Street crash in 1929 autumn was certainly the initial epicenter.  But its real trigger was activated one and half a year later by the failure of Credit Anstalt in a small country of Europe, Austria.  The bank had suffered a body blow in the aftermath of the crash.  Its failure directly hit German economy, bringing down the City of London, a world financial center alongside New York.  Thus, the world economy fell into the Great Crash and suffered from the Great Depression afterwards.

    More than anybody else, for sure, Bernanke was deeply aware and fearful that this would happen again.  According to the estimate of IMF regarding 2008 crisis, a total loss incurred by the U.S. financial institutions’ loans was 2.7 trillion dollars or 240 trillion yen, while the one generated by the Europeans’(and others') was 1.4 trillion dollars or 130 trillion yen.  That it, the total loss was 4.1 trillion dollars or 370 trillion yen.  And it was scattered across the globe, as if time-bombs or mines were planted among global investors and the financial institutions as well.  Therefore, to bail out US and European institutions only was not enough to fix the problem.  Remember the lesson of the Great Depression:  Both US and Europe exhausted energies and did not assure full responsibilities to save even a small country of Austria, and this caused the Great Depression. 

   The situation of 2008 autumn was similar to that of 1931.  Even after the U.S. congress approved the 700 billion dollars or more than 60 trillion yen TARP, the situation was still tensed.  Given such a huge scale of help, there was no way for Bernanke to ask for even an extra penny for injection to the government.  But in the meantime, the clock of the time-bombs in the emerging economies and the rest was ticking away .  These are the facts of history, which show a true meaning of Bernanke’s comment, “October was absolutely critical.” 


“Savior” Moves on the Opposite Side of the Pacific
    In the meantime, there was a man taking a close look at these events from the other side of the Pacific.  I should rather say that he grasped the real meaning of what was happening.  Seeing through the situation that both U.S. and Europe were too tied up with their own problems to reach out their hands to emerging markets, he moved quickly just like Mozi did in the ancient China.  This man or “Savior,” contacted the then Prime Minister of Japan, Taro Aso, saying, “To prevent financial crisis from occurring in emerging countries, which the West cannot take care of for a while, Japan should urgently provide a huge amount of money with them. 

    Although perhaps Prime Minister Aso did not fully understand the dramatic effect of such a measure, or the gravity of the unfolding events, he anyhow worked to decide to do it, simply because this was Master Okawa’s advice.  A man in charge of implementing this measure in Japan was an assistant director-general of   International Affairs Bureau of Finance Ministry.  Luckily he used to be a classmate of Master Ryuho Okawa, President of Happy Science, in Tokyo University.  He was also a member of priests governing the global financial system or international currency mafia, and sometimes called "the next Mr.Vice-Minister for international affairs” by his fellows in the world.  Needless to say, Master Okawa had no contact with him on this issue, but he was simply no match for Master Okawa in the discussion of their university’s seminar.  So I suppose he must be one of those who understood the significance of Master Okawa’s instruction.
    Japanese government took a quick action to decide to provide 100 billion dollars or 10 trillion yen to IMF to help avoid the crisis of emerging markets.  In a moment, the global financial system got assured, and we virtually averted the “global depression” again.  We could see how it worked in a highly-appreciated comment by Strauss-Kahn, Executive Director of IMF on Japan’s decision.

    I think that this is one of Japan’s greatest international contributions or diplomatic achievement based on the leadership and the initiative, which was most dramatically exercised and quite atypical of Japanese in the post-WWII era of Japan.  However, most of the people in the world do not know of the fact or the savior, a present-day Mozi.  

Next Move
    As Japan watchers may be aware of it, the savior took half a year to rectify the anti-American thought of Former Prime Minister Yukio Hatoyama, thereby saving the Japan-U.S. relationship from the brink of collapse.  The savior has also worked on current Prime Minister Naoto Kan after he was in power, and led him to take virtually a conservative diplomatic direction, regardless of his true intention.  This way, the savior did his best not to make the Pacific waves more turbulent. 

   The savior is also worried and thinking about how we can do to ease the pain of U.S. economy.  He is contemplating some measures, i.e. Japan’s help to U.S. should take them back to the path to the economic recover and prosperity again.  Although the savior did not specify a next move yet, I guess that one of the measures is that he will lead Japan to higher-yen based economy in the mid term, which gives U.S. a chance of recovery through an expansion of exports with a lower dollar. 

   The present-day savior does not only preach about minds and hearts and happiness in the heaven.  As Old Testament described, the savior is to solve current social and global problems  and to make people happier in the earthly world.

『In FED We Trust: Ben Bernanke's War on the Great Panic』
by David Wessel
The Japanese translation is published by  Asahi Shinbun Publications Inc. 

『On the Brink:
Inside the Race to Stop the Collapse of the Global Financial System 』
by Henry M. Paulson
The Japanese translation is published by  Nikkeibook, 

『The Sun Will Always Rise』
by Ryuho Okawa
The outline of what proceeded inside Japan is described in Chapter 5.

Saturday, December 4, 2010

Heratri Topics Vol.1 "Unveil the Real Xi Jinping" ~by Sohken Kobayashi

“Reading the mind of Xi Jinping: the man who aspires for becoming the emperor of the world” was published in November 2010 (written by Ryuho Okawa, published by Happiness Realization Party). This is very likely to be a must-read book for those who have high interest in the “future of the world”― politicians, journalists, analysts or hedge-fund managers predicting the foreign exchange market as well as people who study Xi Jinping―an incumbent Vice President of the Communist Party of China (CPC), to whom the world might pay more attention than the US President for the next ten years.

Many cannot deny that the man who will have a power on a par with the US President is about to show his face―for good or bad to the humankind. Xi Jinping has been elected to (or he won) his long-sought Vice President of the CPC at the Party Congress in October this year, which made him the de facto only candidate for “China’s next President”―the power of the name in the country.
  True Identity of Xi Jinping (Shogakukan Press)” written by Izuru Kayasawa may be the only book on the integrated study of the man that exists so far on the globe. Yet, “Reading the mind of Xi Jinping: the man who aspires for becoming the emperor of the world”, I am sure, will outstrip the book, largely because it is written by outstanding means“accessing his subconscious” by the author.
  The subconscious speaks what the person really thinks. Nobody would know it better than Xi Jinping himself. If you think it is hard to believe, you should ask Mr. Hakojima, the former president of Asahi Shimbun Newspaper Company(which journal is one of the biggest daily papers in Japan), who was put in the same shoes seven years ago. After his subconscious was revealed in “The Liberty” (the opinion magazine published by IRH Press), he commented, “What my subconscious says in the magazine is absolutely true; I cannot sue them for defamation.” – so I heard. 

Xi Jinping: the Reincarnation of Genghis Khan

 In the book, it is clearly stated, “Xi Jinping is the reincarnation of Genghis Khan”. Realizing the fact has made me write this essay in English. If your religious background makes it hard to accept the concept of “past life”, you can replace the word “reincarnation” with “coming” or “entity”. (They are all the same, after all.)

Sooner rather than later, the world has to be told the fact that “the spirit of Genghis Khan is about to resurrect in China”―so that we can prevent a repeat of the tragedy in Muscovy, where Mongolian brigades attacked the towns reducing them to dust about 800 years ago, or Abbas of Persia; or crushed defeat of the combined force of Germans and Poles at the Battle of Wahlstatt (mountain of corpses in German) in 1241.
  What concerns me most lately is that the world’s media―not only Asian but Western media which enjoys the freedom of press―may start praising, following, and uplifting Xi Jinping for the next two years until he assumes the post of the President of the People’s Republic of China. And this is beginning to show in my eyes.
  I am Asian (Japanese) and still proud of sharing the value that is universal to many peoples in the world: “freedom from persecution”, “freedom of speech”, “freedom of thought and creed”, “freedom of religion”,and "the true prosperity" which can only be achieved on the basis of those values. In my eyes, the very nature of present China is tantamount to the “imperialism that has appeared 200 years late.” This is why the world should let be known, and his true identity “unveiled”―before many people in the world snuggle up to him as if ants would swarm over the “illusionary honeydew called Chinese economy”.
  One of the disturbing evidences I find while reading U.S. newspapers is that Chinese lobbies are, without hesitation, getting into American political and business circles as well as media. This became a major issue during the presidential election two years ago; and “Ambition of the Chinese Empire: Wen Jiabao speaks through his subconscious” written by Ryuho Okawa, also says a large sum of money has been funneled to them. (Note1) The details on the “relations between American media and Chinese lobbies” will be discussed some other time.

In the meantime, we should be immunized so we will not be taken in by his personas, and manufacture vaccines (provide information), spreading them out all over the world ―the sooner the better.
  He is very frightening to us all―so much so that the present day may be likened to the time when nobody was able to see through the true intention of Hitler when he first made an appearance in history―except a small number of wise persons such as Churchill, Hayek, Dracker, Jung, or Steiner―and then, as you know, the world suffered terrible consequences. Apparently, it is taking place now.

     Four Personas of Xi Jinping

 Xi Jinping hides formidable faces under personas, which will be discussed hereinafter. The horribleness shall never be justified by the beauty of the personas. I am going to predict how he will dance wearing the “personas” in the ball of the world politics for the next two years.

 The first persona concerns his birth and background.
His father, Xi Zhongxun was a communist veteran, former Vice-President of the country, and right arm of then president Chou En-lai. During the Cultural Revolution when his father was purged, he was 15 years old and sent to work in a local farm just as other upper class sons. (A story tells that he was forced to live in a “cave” then.) The touching story―a man who was “persecuted” or went through “sufferings”will appear in the first place as his persona.

 The second persona involves the phrases like “he knows the people’s real life”, or “he can relate to the feeling of the people.”
These selling points of his come from his past history: When his father redeemed his honor, Xi Jinping returned to Beijing, graduated from China’s elite Tsinghua University (on a par with Beijing University), and became a secretary of then Minister of Defense. (This shows he belongs to the privileged class.) However, he resigned the post to “work in provinces for 25 years never return to the central government.”
   He is also praised as “a man of frugality” for his suffering in his youth, and has a whole bunch of the “myths”. For example, “When he was assigned to a province for the first time, he visited the villagers’ houses riding a bicycle”, or, “When his friend was invited to his house to have lunch with his father (after restoring his honor), he was surprised to see their meal was very simple, with rice noodles being served instead of rice.”

Moreover, he is a clean figure without corruptionrare for the top officials of the Communist Party. As true as it may be, he is laden with scandals related to his relatives (as is often the case with Chinese officials), and this will be uncovered by the world’s media before long.

He might be taken as a man of all virtues when people listen to what he says because he often quotes “Analects” of Confucius. However, use caution to see through his true intension when he uses phrases like “combining virtue and ability” (his pet phrase), or “With virtue, conduct the affairs of the state” (his personal motto) because he uses them as the “means of controlling people”.

The third persona may be his “stately figure.”
Considering his past life being Genghis Khan, it is quite convincing. He looks generous, as many Japanese who met him would say. (Certainly he looks so in appearance. He is 180cm in height weighing 80kg; as a leader, he should be mindful of his weight.)
 His third persona may be emphasized in the days ahead.

The fourth persona may involve his wife, who is one of the famous and the prestigeous  singers in China.
He won her heart when he was unknown as an heir candidate of the President of the country.  His “star appeal” or “having what it takes to be a star” is likely to spread.  

Please do remember the four “personas” described so far that hide his real face, to immunize you before they go around. After all, “the first blow is half the battle.”

  What are pointed out about “the man who aspires for becoming the emperor of the world” in the book

 I have clearly described his ambitions so far because his true nature has already been uncoveredwhen he “suppressed Uygur as the leader”. According to the “World Uyghur Congress”, the international organization of exiled Uyghur groups, the number of victims of the suppression has been amounted to 10, 000 and more since last year. I hate to say this, but the Chinese government has been, what is called, trying to “eradicate” or "purify" the Uygur by “castrating” men and “sterilizing” women for the purpose of “ethnic cleansing.”  Xi Jinping is responsible for such atrocities.

When Xi Jinping failed to be appointed as the “Vice Chairman of the Central Military Commission of the Party”the post securing heir-apparent to the Presidentin the last Party Congress in 2007, President Hu Jintao, as an excuse for turning down Xi Jinping, suggested to him, “I have climbed to this post by achieving satisfactory results through the Tibet suppression. You have not had any record on ‘security enforcement’, have you? If you want to assume my post, you have to show the “capability” first. (Note 2)  Then, when the turbulent took place there in 2009, he had become the chief executive of the “security enforcement” and carried out the “suppression” nicely. This has earned him the promotion through the ranks.

 Including such profiles of his, this book―“the man who aspires for becoming the emperor of the world”―is full of details the world should know. Now, I would like to point out some of them in the following.

1. First of all, on page 37, Xi Jinping strongly asserts that he is the emperor: “My true nature is the ‘emperor’.” “I am the emperor of emperors.” “Emperor” here refers to the dictator who could have “belittled Hitler”― which is exactly what he describes himself in another page and that you should acknowledge. 

2On page 54 and thereafter, he refers to Hu Jintao: “I have to pretend that I am waiting on him for the next two years” “I will behave as if I were following his policy to deceive him” “He is, after all, just a ‘chair-warming’ before me. He is nothing like an emperor.” Printing this clear statement means a lot―because this is exactly what many journalists in the world may think about him.

3. On page 62 and thereafter, he refers to the anti-Japan demonstration: “I am the one who provoked the demo.” The world should give more attention to this remark now that the evidences are beginning to see the light at news coverage.

4. According to page 68 and thereafter, he says, “I will cook (dismiss or purge) both Hu Jintao and Wen Jiabao.”

5. On page 83 and thereafter, he clearly states his ambition: “I’d like to build the world empire such as the former Yuan Dynasty (Mongol Empire); by doing so, I want to declare the world that ‘the Chinese era has now arrived.’―I have such an ambition.” The world should know that his intention is to resurrect Mongol Empire―which, to him, includes the control of Southeast Asia, Australia and the West Pacific Ocean including Hawaii, as well as the Middle East oilfields and Africa.

6. On page 92, there is a phrase that the US government should be aware of: “I will terminate the outdated ‘Japan-US alliance’, and instead, achieve the ‘China-Japan alliance’.” 

7. On page 97 and thereafter, you will understand clearly what “alliance” or “merger” means to him: “China is protecting Mongol, Uygur, as well as Tibet from Dalai Lama.” As this phrase clearly shows, what he calls “protection” (“alliance” or “China-Japan alliance”) means to carry out the ethnic cleansing,or at least, the colonization. (This is not a bad joke. You would take it real if you see the “Old Testament (Kings 2)”, where similar cases are indicated. (Please refer to p156 in the aforementioned book. I will later illustrate the background and the context of this reliable interpretation.)

8. He refers to Australia on page 104: “I shall have about 50 million Chinese immigrate to Australia, to virtually control the country’s economy.” The Australian government should know his ambition toward their country, where Chinese companies are aggressively buying out their companies that develop mines or natural resources. Apparently, the country shares the sense of danger, too; yet, we cannot emphasize his “ambition” enough.

9. You will also be surprised what is written on page 106: “The yellow race should be under rule of China.” The “yellow race” here includes, at least, Vietnam, Cambodia, Laos, Thailand, Myanmar, Malaysia, Singapore, Philippines, Indonesia, Taiwan, and Korea. He will set out the plan for real upon assuming the office as President of China in 2012.

10. According to him on page 109 and thereafter, he will “make Africa the food-storage house of China.” They already have undesirable reputation in developing natural resources in Africa and this is likely to extend to the agricultural development as well.
(This is as far as I intend to analyze on this issue. The term “food-storage house” includes uglier meaning in terms of cultural anthropology or under cosmic contexts. Since they should be discussed as totally independent issue, I would like to delve into it some other time.)

11. On page 110, he refers to the hot issue in today’s Japan, claiming, “Okinawa is Chinese territory.” Please do remember his word.

12. On page 115 and thereafter, he says about the language: “‘Chinese’ should be chosen as the global language―one and only―, which will be realized when the population of China increases to 1.6 billion, making the total number of natives and learners up to 30 billion.” People of the English-speaking countries should bear in mind his words on the language.

13. Although he says on page 130 and thereafter, “Indonesia is already under control of China”, this may require some explanatory words. The President Loyola of the country did make a statement that would have solidified the remark. However, when US President Obama visited the country last time, he was able to do some catch-ups. Before the last visit, President Obama had canceled his trip to the country twice at the last moment due to the internal affairs. This might have let the Indonesian President to resort to the “revenge” on the US. Now, the US is making it up by offering assistance and cooperation for the country. Considering these circumstances, what he said could have been a “bluff (threat)”.

14. On page 133, he talks about Iran: “Iran, let alone Pakistan, has been allied with China behind the scenes―by means of China’s “arms export”. CIA might have detected the sign of it―without solid evidences yet. Chinese involvement (virtually, yet indirectly) with the nuclear development of Iran is definitely a crucial issue to the rest of the world, and the phrase points out that this could be the case.

15. And the greatest secret revealed in the book ishe is the “reincarnation of Genghis Khan”as indicated on page 147.

16. In addition, as described on page 156, he reveals another reincarnation: “My past life before Khan is the king, the founder of the Neo-Assyria World Empire.” Considering the contexts, this is most likely to refer to the infamous “Tiglath Pileser III (King Pulu) in the Old Testament “King 2”. The people of the Bible (Christian, Jewish, and Islamic) should know this fact.

17. Lastly, on page 175, he mentions USA: “In a nutshell, I am going to end the US era in 2020once and for all.” In other words, he intends to overthrow the US from the world’s leading country in ten years.

Luckily enough, we still have two years before he assumes the leadership. You and I together should disseminate the true nature of Xi Jinping and what he real thinks―to every corner of the world.
This is the battle of brains(BOB) toward new Hitler, in which speed is fairly crucial; as was once so over Strait of Dover.

(Note1) Ryuho Okawa, Ambition of the Chinese Empire: Wen Jiabao speaks through his subconscious (Happiness Realization Party, p95)
(Note 2) Izuru Kayasawa, True Identity of Xi Jinping (Shogakukan Press, p174)

『Reading the mind of Xi Jinping:
the man who aspires for becoming the emperor of the world』
by Ryuho Okawa

『Ambition of the Chinese Empire:
Wen Jiabao speaks through his subconcious』
by Ryuho Okawa

『True Identity of Xi Jinping』
by  Izuru Kayasawa