"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Tuesday, December 18, 2012

Conservatives to inflate Japan's money supply

Former Conservative Prime Minister Shinzo Abe returns to power.

Do Conservatives even exist?
Japanese "Conservative" parties win election on a platform of massive spending increases and printing tons of new paper money
  • So-called "Conservative" parties around the world sound a lot like the Socialist parties.  Both the left and right campaign on platforms to increase spending and the printing endless billions in new pretend paper money to pay the bill.

Reuters reports that the Japanese yen dropped to a 20-month low against the U.S. dollar on Monday after Japan's Liberal Democratic Party won a landslide election victory that leaders promise will usher in aggressive monetary easing policies to weaken the currency.

Former prime minister Shinzo Abe returns to power with the LDP's victory. He campaigned on a platform to boost the moribund economy with hyper-easy monetary policy and big fiscal spending to beat deflation, a recipe for weakening the yen that gives Tokyo an export advantage in the international markets.

LDP crushes rivals in Japanese poll 
Japan's Liberal Democratic party has crushed the ruling Democrats in an election landslide so emphatic that together with a smaller coalition partner it will be able to enact legislation even without approval by the Diet's upper house.

Analysts expect the prospect of ultra-loose monetary policy in Japan to weaken the yen further in coming weeks, depending on the pace of policy change. However, given that bets against the yen are already hefty, losses could be limited.

The LDP's massive victory will give the new government a greater chance to push through policies and possibly appoint a more dovish central bank chief next year. The LDP and its ally the New Komeito party secured the two-thirds majority needed to overrule parliament's upper house.

"The fact that the LDP secured a two-thirds majority gives them a strong mandate and will lead to significant policy changes," said Ian Stannard, head of European currency strategy at Morgan Stanley.
(Reuters News)

The new seating in Parliament after the election.
Right-of-center parties start on the right side of the chart and are represented by the colors of green, yellow and stop at blue.

LDP (294)
DPJ/Club of Independents (57)
Kōmeitō (31)
YP (18)
JCP (8)
Independents (6)
SDP/Shimin Rengō (2)
PNP (1)

Special advisory to American readers.
Do not be alarmed. This is called a free election with many real political parties on the ballot. Free elections are something the United Stated used to have. Don't worry, this moment of confusion will pass and you will return to the modern undemocratic US system of only two choices on election day.
As late as the 1930s and early 1940s the US Congress still had free multi-party elections.

Sample free election  -  Five political parties in the US House.

Sample free election  -  Four political parties in the US Senate.
But American democracy ended with the massive increase in the size of House districts.  Today only candidates funded by billionaire special interest groups of labor unions and business have any chance at being elected to anything.  The US has a government of, by and for the Billionaire Cartels that are all looking to suck the treasury dry for their interest group.

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