Tokyo!!
Wonderful Tokyo!!!...awe??
(Click to Check!)$6.3 trillion vs. $10 trillion
(12.7 trillions de dollars et 53.5 trillions de dollars)
Mr. Lawrence Summers, the director of the National Economic Council, is going to leave the White House, back to Harvard University, again.
As indicated by the fact that Seoul, but not Tokyo, was chosen as the venue of the G20 Meeting, the American Democratic Administration has lost a right sense in understanding ever increasing importance of cooperation with Japan.
The American Democratic Administration must stop the easy tactics of showing their rudeness to Japan, with expectation of receiving any respect from countries envying Japan, such as China.
As long as the American Government treat China and South Korea as if they were more important allies than Japan, they cannot solve their own financial problems.
American voters should act to have more pro-Japanese federal Administration to defend their assets.
SECTION I: Review of the Past Material (10)
While the FRB has been providing so many dollars in the market, the Bank of Japan would not do so with the yen.
This has caused the sharp rise in value of the yen against the dollar.
Status of Yen/Dollar Provision by the Central Banks of Japan and the U.S.
Various media people and economists scoffed at the recent exchange intervention by the Japanese Government to settle the rate around 85 yen per dollar instead of 82 yen.
If the Bank of Japan bought $17 billion a day with yen bills, it is a tiny portion of $4 trillion or so exchanged all over the world per day. It would soon result in a failure badly, they predicted.
The point at issue is that there are many small-time traders, brokers, and gangsters in this market. They can be sufficiently warned with this BOJ's $17 billion-a-day operation.
If there are one million players in the market, only thousands can sometime decide a trend. And oftentimes these thousands are simply driven by hundreds of those small-timers. This Japan's exchange intervention is aimed at those irresponsible money seekers.
Of course, if there is the FRB behind them, it would be surely hard to deal with such a sharp rise of the value of the yen. Yet, if there is Mr. Lawrence Summers behind them, it would be soon over.
SECTION II: Report from the Bank of Japan
The Interim Report on Flow-of-Fund Statistics as of 2Q of 2010 was issued by the Bank of Japan.
Sector in Japan....-.....Amount of Assets
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Households....-.....$17 trillion
Non-Bank Businesses....$9 trillion
Government...-...$5.6 trillion
Overseas Assets...$6.7 trillion
Total Financial Assets of Japan...-...$38.3 trillion
Sector in Japan....-.....Amount of Debts
------------------------------------------
Households....-.....$4.3 trillion
Non-Bank Bsuinesses....$11.8 trillion
Government...-...$12.2 trillion
Overseas Debts...$3.7 trillion
Total Financial Debts of Japan...-...$32 trillion
(http://www.boj.or.jp/type/stat/boj_stat/sj/sjexp.pdf )
Accordingly, the amount of the total net financial assets of Japan is $6.3 trillion.
SECTION III: Report from the FRB
As for America, data and calculations are a little complicated, since there are many controversial stakeholders in the FRB.
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September 17, 2010
FEDERAL RESERVE statistical release
Flow of Funds Accounts of the United States
At the end of the second quarter of 2010, the level of domestic nonfinancial debt outstanding was $35.5 trillion; household debt was $13.5 trillion, nonfinancial business debt was $10.9 trillion, and total government debt was $11.1 trillion.
Household net worth—the difference between the value of assets and liabilities—was an estimated $53.5 trillion at the end of the second quarter, down $1.5 trillion from the end of the previous quarter.
http://www.federalreserve.gov/releases/z1/Current/z1.pdf
(As of July 28, 2010, the "Total Public Debt Outstanding" [U.S. Treasury securities held by institutions outside the United States and Intergovernmental Debts] of America was approximately $13.258 Trillion).
http://en.wikipedia.org/wiki/United_States_public_debt
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Accordingly, if the American households assets are used to cover domestic nonfinancial debt outstanding and the "Total Public Debt Outstanding", American household net worth would shrink to $18.2 Trillion.
However, including some financial debts, the total debts of America at the beginning of 2010 is $57 Trillion ($42.3 trillion private household/business/financial sector debt PLUS $14.7 trillion federal, state and local government debt).
http://mhodges701.home.comcast.net/~mhodges701/debt-nat.htm
Accordingly, if the American households assets are used to cover the total debts, American household net worth would shrink to $10 Trillion.
Therefore, compared with this, Japan with the total net financial assets is $6.3 trillion is not so bad. Or, Japan is a little safer than America in terms of a possibility of state bankruptcy, since Japan's GDP is just 40% of America's in terms of the size.
Rating of Japan must be equal to or better than USA, though Japan's ratio of public gross debts over GDP is larger than America's.
SECTION IV: Report from the Chinese Communist Government
So far not found. Even if found, their statistics can be 10 to 40% deflated or inflated.
Only authentic figures are calculated in the U.S. Department of the Treasury:
Leading Foreign owners of US Treasury Securities (May 2010)
Nation... $billion...percentage
China... 867.7.... 21.9
Japan... 786.7.... 19.8
United Kingdom 350.0.... 8.8
Oil exporters1 235.1.... 6.0
Caribbean Banking Centers2 165.5.... 4.2
Brazil... 161.4.... 4.1
Hong Kong...145.7... 3.7
Russia... 126.8... 3.2
Taiwan... 126.2... 3.2
Grand Total... 3963.6... 100
To make sure, the grand total is just $3.96 trillion.
SECTION V: CONCLUSIONS
In these rough calculations, Japan's economic recovery depends on its $6.3 trillion net assets in the whole nation.
America's economic recovery depends on its $7.9 trillion net assets in households after refunding the national debts.
If there are any reasonable economists, they might propose something on how to use those trillion dollars.
My advice is that Japan invests into America with $6.3 trillion and America invests into Japan with $7.9 trillion for improvement of living standards of poor people in both the nations.
Otherwise, Japan and America might degrade into a state of China: 15% of super-rich, rich or middle-class people and 85% of poor people.
*** *** *** ***
Chinese Prime Minister Mr. Wen Jiabao, in New York, demaded that Japan should release the arrested skipper of the fishing boat seized by the Japan Coast Guard around the Japan's Senkaku Islands early this month.
However, Chinese fishing boats have been violently invading not only the Japanese territorial sea but also South Korea's.
Between 2004 and 2007, total 2,037 Chinese fishing boats were seized by the Korean authority. The total number of Chinese fishermen arrested was 20,896. The total amount of damages paid by China to Korea was $22 million. In one case, Korean police officers were attacked by violent Chinese fishermen using iron pipes.
(http://www.excite.co.jp/News/china/20081014/Searchina_20081014049.html)
Japan thinks there is no territorial disputes between Japan and China, since the Senkaku Islands are effectively patrolled by the Japan Coast Guard.
In this case, China should avoid a physical clash on the sea if it cannot admit the present status, according to International commonsense. China should simply present evidence that supports their claim in a diplomatic channel. China should learn how to behave like another world No.2 economy.
In addition, not only the Kan Cabinet but also the opposition LDP is concerned with this incident. The Chinese Communist Party cannot find any friends in Japan regarding this unlucky incident for China.
By the way, is it true that the amount of crude oil reserves under the sea around the Senkaku Islands is almost equal to those in Iraq?
(According to energy experts, the Diaoyutai [Senkaku] Islands waters' oil reserves are estimated at 74-157 billion barrels [Ta Kung Pao, September 15].
http://www.jamestown.org/single/?no_cache=1&tx_ttnews[tt_news]=5173 )
If so, it is time for the U.S. Seventh Fleet to be mobilized, of course, subject to the Japan-U.S. Security Treaty, since the Japanese Constitution forbids declaration of war by the Japanese Government.
Remember Japan neither starts nor gets engaged in war, though the Chinese Constitution seems to encourage war.
(http://www.youtube.com/watch?gl=JP&hl=ja&v=pAuitCr-omA
Hello Dolly, jolly jolly, I don't mind if they call you Barbara Ann...)
Act 9:20 And straightway he preached Christ in the synagogues, that he is the Son of God.
Act 9:21 But all that heard him were amazed, and said; Is not this he that destroyed them which called on this name in Jerusalem, and came hither for that intent, that he might bring them bound unto the chief priests?
Act 9:22 But Saul increased the more in strength, and confounded the Jews which dwelt at Damascus, proving that this is very Christ.