Japan printing "new" money...

I just read one of the most fascinating articles from an economic perspective in my lifetime. Japan is planning to print Y50 Billion ($546 Billion) in "new" money.

Think of this. I think the last President in the US to finance the nation's needs by "printing" money was Lincoln and he was shot. Jackson tried and an attempt was made on his life as well. It has also been suggested Kennedy was thinking on these lines and we all know what happened to him.

Way to much money is made off "debt" by to many people for the financial world to be keen on paying off national debt or to even think of creating money without "borrowing" it. More money in history has been made lending to nations, especially during times of crises or war, for any interest by money lenders to see their power of the purse adverted. Hence the first actions of both presidents Reagan and Bush II were to 1) Create / Declare a global enemy, 2) Dramatically increase the nations debt through the Defence Industry Welfare System. During both 8 year reigns of these two men, the debt increased dramatically, Wall Street got filthy rich, the share of income received by middle America declined and the percentage of our tax dollars to pay the debt increased demonstratively.

So you know I am not pulling your string just think of the amount of our tax dollars that are transferred to the holders of the nations debt each year. 2008 saw $412 Billion dollars of your tax dollars being handed over to the holders of our National Debt. This is serious cash. As of the writing of this post, the national debt stood at over $10 Trillion.

Now, the most interesting aspect of this article is this quote by Koutaro Tamura:

"We are facing hyper-deflation, so we need a policy to create hyper-inflation. We have to do something to undermine the central bank and government's credibility or else we won't be able to halt the yen's rise. So, while we know this is drastic medicine, we will do it," said Koutaro Tamura, a upper house Diet member who will chair the new group.

The economics of the desire to print new money are worth exploring. I will not do so here but suffice to say, the ideas are brewing so stay tuned.

I just hope we don't find Mr. Tamura "under a bridge" anytime soon.

Read the article here: (May need subscription)