Since yesterday, I have been discussing: why Japan’s top can’t have strong leadership? I demonstrated three reasons for that. Yesterday, I talked about the third, the extreme left wing media and education.
Today, I would like to talk about that first hurdle, Jewish and American financial capitalism.
I have been appraising real estate since 1992, just before the collapse of the 90’s bubble. At the end of the Japan’s NPL off-balancing to Resolution and Collection Corporation, RCC, foreign financial players appeared. Jewish financial groups around the world, such as Goldman, JP Morgan, Morgan Stanley and Deutsche Bank, have begun to buy non-performing loans in Japan. Loans very much discounted were value-added and sold at high prices after the recovery in the economy.
Around that time, I was deeply involved in the structuring of the CMBS. This was also during the bubble before the Lehman brothers’ clash, the CMBC issued amount increased considerably, and principally Japanese institutional investors had invested those finial tranches.
Obviously after the collapse of Lehman Brother, those products’ value was lost, and the final compensation was come from the injection of public funds. When the Heisei bubble burst, I think there was the biggest change in the industry. There was the mood that real estate securitization must be introduced as soon as possible. We had a strong pressure from the Ministry of Finance, the Ministry of Construction, and the National Land Agency, and the industry had to take immediate actions to respond such commands. Naturally the financial and real estate practice had to experience a bid deal of confusion.
I wondered why we had to securitize real estate, what were the troubles and what inconvenience we were going to have if we continued the same manners. No one told me the answer. I studied abroad in 2004, and I had the opportunity to study in Europe and the United States. When I learned overseas system, I realized the mechanism we had to do securitization because someone wanted to make money from it. They were well familiar with how to generate the cash flow steam from the market that was large but looked old fashioned.
The most profitable players benefitted from this new scheme were foreign financial capitals and Japanese financial institutions.
With that scheme, foreign investors came into Japan, legally invested in Japanese real estate, earned profits, avoided taxes in Japan, and took the fruits to so-called tax haven.
On the other hand, I think that the Japanese government and the administration could have told to those non-Japanese capitals: “we, Japanese, don’t want to have such mechanism, how come we should provide our property and have you make money?”. However, I think it is more natural to think that there is a background to creating this mechanism.
Perhaps the Meiji Restoration in 19th century before the war in Japan, had a root cause to bring such mechanism. These are huge financial institutions that take control of the world, came and put pressure on Japan. “Hey, Japan, if you implement this scheme, we can make money, can’t we? Why don’t you do that??” We were not able to say no, taking into account the bargaining power and the power balance between two countries.
Of course, this is just my assumption, and there is no concrete evidence.
Looking at what I experienced and the actual flow of money, I think above story looks convincing.
This pressure is huge. They may be thinking “I love the world’s third GDP country. They keep working. Even if we are harsh on them, they will continue to work silently without complaint, keep patiently accept low interest rates that make you rich. They continue to pay taxes and save most of their income. Is on earth … there any other alternative than this eternal cash cows?
Recently, working at home, I watched again the Godfather, part 3. I highlight the scenes of Andy Garcia and Sofia Coppola. The two are in love, but if he becomes a godfather, he has to give up Mary, the daughter of as-is godfather Michael (Al Pacino). Vincenzo (Andy) was about to say goodbye to her girlfriend Mary (Sofia).
“I always love you..” says Mary.
Vincenzo answers, “Love somebody eles …”
Andy Garcia was so cool. When I think of Jewish / American capital that controls the world’s finances, I recall this scene. I want them to love other people, not Japanese anymore. Please don’t love Japan. But perhaps, I think they love us Japanese as long as we want less, live modestly, and keep working & saving more and more at low interest rates.
So this spiral of love, even the prime minister of a country, can hardly be stopped.
