The Geopolitics of Japan

The Beginning

Japan, in the mid-19th century was a feudal society.  Next door, in China, the British had taken control of its key trading points – through the Opium Wars. Just as Britain was to play the “balance-of-power” role in regards to Continental Europe, the Rothschilds wanted something similar in Asia, especially against China. Japan was a closed society, with very little foreign dealings.  To correct this problem, the family needed a superb tactician. The man chosen was Commodore Matthew Perry, the father-in-law of their American agent, August Belmont.

In 1854, Commodore Matthew Perry and his four “Black Ships” of the United States Navy forced the opening of Japan to the outside world.   When he was refused entry into Tokyo, or even an audience with the Japanese, he used the ships’ guns to such forceful effect that, not only was he granted an audience with the Emperor, but several agreements were reached.  Subsequent similar treaties with other Western countries brought economic and political crises. This led to The Boshin War and the establishment of a centralized state nominally unified under the emperor (the Meiji Restoration).  Adopting Western political, judicial, and military institutions, the Cabinet organized the Privy Council, introduced the Meiji Constitution, and assembled the Imperial Diet. In 1868, a change took place within Japanese politics with the Meiji Restoration. Japan’s top political bodies were – re-organized along similar lines to how the British Empire worked – an Emperor, then the Privy Council, the Imperial Diet -which, following 1945 became the Japanese parliament.

This started the process of industrialization, and it began Japan’s start to modernize its economy. To finance this, the Rothschilds picked the biggest of the various business clans close to the Emperor’s court – the House of Mitsui. Today, the Mitsui Group is the largest business group in Japan. Besides Mitsui, other business clans also benefitted – such as Mitsubishi, Sumitomo, and a few others. It would take decades before Japan would be of use to the Rothschild – Japan would be their Asian “stick”. Thus, began the grooming and build-up of Japan as a formidable industrial and military power.

 During the Meiji era (1868–1912), the Empire of Japan emerged as the most developed nation in Asia and as an industrialized world power that pursued military conflict to expand its sphere of influence. After this, Japan made a convulsive effort to modernize, becoming the first Asian nation able to compete militarily with the West. As her army and navy developed, she was in a position to launch a campaign of mechanized conquest on the Asian mainland, to acquire a colonial empire of her own.  Her first target was Korea.

By 1860, the Anglo-French military took over Beijing, after defeating China in the Second Opium War. Out of this war, the Rothschilds established the Hong Kong and Shanghai Bank (HSBC), which-to this day- serves as a wholesale financier for the Asian side of the global illegal narcotics trade. In 1873, the Rothschilds passed the silver demonitization bill, removing silver as “legal tender”. This had a devastating impact on China -which used silver as its chief currency.  The Chinese economy was brought to its knees. This resulted in a severe depression in China. Resentment against foreign traders and firms increased. The Rothschilds decided it was time to use their “stick”- Japan. As an aside, India was also devastated for the same reason – silver was its chief currency.

 After victories in the First Sino-Japanese War (1894–1895) and the Russo-Japanese War (1904–1905), Japan gained control of Taiwan, Korea and the southern half of Sakhalin. The Japanese population doubled from 35 million in 1873 to 70 million by 1935, with a significant shift to urbanization.

The early 20th century saw a period of increasing expansionism and militarization. World War I allowed Japan, which joined the side of the victorious Allies, to capture German possessions in the Pacific and in China.  The 1920s saw a political shift towards a period of lawlessness following the 1923 Great Tokyo Earthquake, the passing of laws against political dissent, and a series of attempted coups. This process accelerated during the 1930s, spawning a number of radical nationalist groups that shared a hostility to the Rothschilds and a dedication to expansion in Asia.

In 1931, Japan invaded and occupied Manchuria. The Empire of Japan invaded other parts of China in 1937, precipitating the Second Sino-Japanese War (1937–1945). In 1940, the Empire invaded French Indochina, after which the United States placed an oil embargo on Japan. On December 7–8, 1941, Japanese forces carried out surprise attacks on Pearl Harbor, as well as on British forces in Malaya, Singapore, and Hong Kong, among others, beginning World War II in the Pacific. Throughout areas occupied by Japan during the war, numerous abuses were committed against local inhabitants.

Japan’s Conquests Begins

Japan Defeats China (the Yellow War) & Conquers Korea

 It started with a false flag attack in Korea by Japanese agents, and was followed by sinking a Chinese ship with 1,500 soldiers – sent to assist Korea. China’s tottering Manchu government foolishly declared war on Japan. In September 1894, the Japanese destroyed half of China’s navy in a single afternoon, and then captured Manchuria’s “impregnable Port Arthur.   This was called the “Yellow War”. It lasted for 6 months, and ended with the defeat of China. China sued for peace.  By now, Japan controlled the whole of Korea and Manchuria. China also gave the Japanese control of Taiwan, which became Tokyo’s first colony.  The Rothschild investment in Japan had now paid dividends.

When Japan and Korea first started feuding 2,000 years ago, there was no Korea or Japan, as we know them today.  In different parts of the Korean Peninsula were city states with highly developed economies. Their porcelain is amongst the most prized in the world today. The elite lived in palaces with thousands of slaves. Taking no interest in commerce or warfare, they developed astronomy, mathematics, and invented movable type long before anyone else. Until the 16th century, Korea had one of the world’s most advanced civilizations.

Meanwhile, in the secluded islands of Japan, immigrants from China and Korea were linked in a loose federation ruled by Shinto priests. For 1,000 years, these rival domains feuded amongst themselves, before finally submitting to the central military dictatorship of the shoguns. Chronic conspiracy produced Japan’s “paranoid style” in foreign relations. If Japanese treated each other ruthlessly, why treat foreigners otherwise? In ancient times, Japan was raided by gangs from the Korean peninsula, and vice versa.  Such raids caused a mutual loathing of Koreans and Japanese. Koreans regarded Japanese as “uncouth dwarfs”. Chinese were more cultivated, so Korea willingly accepted a tributary role with China. In return, China protected Korea from Japan. In the 16th century, after Japan was unified by Hideyoshi, he launched an invasion of Korea with 158,000 men. His plan was to crush Korea and erase its culture from the face of the earth. After several years of cruel occupation, Korea was rescued by Chine Admiral Yi. Admiral Yi cut Japan’s supply routes and destroyed its ships.

 Despite this failure, the invaders profited richly by looting Korea. Their army included monks and scholars assigned to steal Korea’s finest manuscripts. A Korean scholar said the Japanese were “wild animals that only crave material goods and are totally ignorant of human morality”. Centuries later, when Japan invaded Korea again, its armies once more included teams of monks and scholars to find and loot the finest artworks. Korea never recovered. In the 19th century, it was the weakest, least commercial country in East Asia, ripe for picking.

China, on the verge of collapse, was in no shape to defend Korea. During the night of October 7, 1895, Japanese assassins forced their way into Korea’s royal palace in Seoul, stabbed Queen Min, and burnt her alive. The grisly murder of Queen Min was a turning point in Japan’s efforts to gain control of Korea.  With the Queen dead, the Japanese could easily control the weak King and put an end to Chinese interference.

Following the Meiji Restoration of 1868, deep contradictions arose with the Japanese elite. Two factions competed ruthlessly for power behind the throne, and for influence over the Meiji Emperor.  One faction was allied to London, the other with Army General Yamagata. Those allied with Yamagata  were throwbacks to medieval Japan, where power worked in the shadows with assassins, surprise attacks, and treachery. While Yamagata built a modern conscript army to replace Japan’s traditional samurai forces, he also built a network of spies, secret police, yakuza gangsters and super-patriots. They were the key elements of the police state Yamagata was creating in Japan. Underworld godfathers were a vital component of Japan’s ruling elite.  Members of the imperial family, and the financial elite that controls Japan, had close ties to the yakuza. When Yamagata’s armies invaded China and Korea, the gangsters were the cutting edge. Thereafter, Japan’s underworld played a major role in looting Asia over 50 years, 1895-1945.

 Queen Min’s murder marks the beginning of this half century of Japanese brutality and industrial scale plunder. Her killing shows how easily the mask of Japan’s good intentions could slip, to reveal hideous reality. Today, North and South Korea are only vestiges of a distinguished past.

 Korean resistance was intense, but futile.  Soon, the Korean peninsula was stripped of everything from artworks to vegetables. Up to 6 million Korean men were dragooned to work as forced labor for Japan during the war years (1935-1945), Saddest of all were the thousands of Korean girls duped into going to Japan for employment, instead ending up in brothels, run by the yakuza. These girls were forced to serve the Japanese army all over Asia. They came to be known as “Comfort Women”. Many decades later, Japan still refuses to accept any liability on this issue.

Japan fights Russia

In May, 1882 after complaints from the people, the Russian Czar passed the May Laws. These laws were aimed at Russia’s Jewish population.  Due the higher level of educations, Jewish students excelled, and this got them more jobs within the government, and other business entities. Jews comprised about 2 % of the population, but soon occupied more than 40% of all the top jobs. The May Laws were passed to correct this, and the Jews would be able to get only 2 % of the jobs – in proportion to their population. And so began an exodus of Jews leaving Russia. Europe did not want them. The Rothschilds were upset with the Czar.

By September of that year, Edmond Rothschild began to move some of these Russian and Eastern European Jews to Palestine- and thus began what we now know as Zionism! In addition, the family moved many of these Jews to the US, South America, Australia and South Africa.

In 1891, Russia embarked on an ambitious program to modernize, and industrialize Russia. The center-piece of this program was the Trans Siberia Railway, linking Moscow in the West to Vladivostok in the East. This 9,000 kilometer project would transform the entire Russian economy. A central part of the plan was to develop closer economic ties with China, independent of British control of China’s ports and sea lanes.  This transformed Russia’s prospects greatly from its former role as a “bread-basket” for British grain trading houses, into a potentially modern industrial nation. Railroads became the largest industry in Russia, and were inducing transformation of the entire range of related steel and other sectors.  Britain energetically opposed the Trans Siberian Railway project with every means at its disposal. London stated that – – “this line will not only be one of the greatest trade routes that the world has ever known, but it will also be a political weapon in the hands of the Russians, whose power and significance, it is difficult to estimate. It will make a single nation out of Russia, for whom it will no longer be necessary to pass through the Dardanelles or through the Suez Canal. It will give her an economic independence, through which she will become stronger than she has ever been or dreamt of becoming”.

Since the passing of the May Laws of 1882, the Rothschilds had cancelled any new loans for Russia, until the May Laws were rescinded, which the Czar refused to do. Thereafter, the Rothschilds unleased assassinations, and other crimes targeting Russia’s political elite.

For decades British balance-of-power alliance strategy in Europe had been built around Ottoman support of the Ottoman Empire, blocking the emergence of a strong and industrialized Russia.  Support of Turkey, which controlled the vital Dardanelles access to warm waters for Russia, had been a vital part of British geopolitics until that time.  The Trans Siberian Railway was completed in 1903.

Having humiliated China, Japan felt ready to take on Russia, which was building railroads into Manchuria. Backed by Rothschild money and Rothschild arms companies, Japan was now an Asian super-power.

 On February 8, 1904, Japan launched two surprise attacks, one on the Russian naval base at Vladivostok, another on 2 Russian warships in the mouth of Korea’s Inchon harbor. In reply, the Czar sent his Baltic Fleet halfway around the world, only to see it destroyed by Japan’s navy in the Battle of Tsushima, in May 1905.  As China had done, Russia sued for peace, giving Japan the lower half of Sakhalin Island, transferring to Japan its lease on South Manchuria, and giving Japan control over the southern section of its Manchurian Railway. Now feeling invincible, Japan formally declared Korea a colony.


An American railroad magnate, Edward Harriman (working for the Rockefellers) arrived in Japan-in the mid-1920s. His host was Baron Mitsui. The purpose of this trip was to buy the South Manchurian Railway to complete a round-the-world transportation network under his exclusive control, a plan that Black Dragon boss Uchida and Baron Mitsui intended to block. Mitsui was allied to London and the Rothschilds. Both parties did not want American interference in their plans. The Black Dragon was one of the main yakuza/criminal networks in Japan, and it worked in tandem with the Emperor and Japan’s industrial and financial elite. The Mitsui and Mitsubishi empires made extensive use of such.

Korea had been a poorly guarded warehouse, filled with the wealth of 2,000 years. Once Korean resistance was beaten down, it was only a matter of confiscating everything and shipping it to Japan. This was too easy, and the Japanese had become complacent, thinking all of Asia would be easy.

The challenge of Manchuria was different. Many times the size of Korea, it was not a packed warehouse, but a barren wilderness. Its only value lay in South Manchuria – the industrialized part of the province, built up with Russian money, the naval base at Port Arthur, and the Russian-built railway. Eventually, the railway would be used to seize the whole of North China.

Both Russia and China were drawn to Manchuria for its strategic position, and its harbors that controlled naval access to the commercial centers of North China. Till the province could get built up, there was nothing to steal except land. The plans of the dreamers were abandoned; the dreamers turned Manchuria over to the rogues. Japan’s rogues were carpetbaggers, spies, secret policemen, financial sharks and gangsters, drug dealers and loony army officers. Together, they did what the dreamers could not do. They turned Manchuria into Asia’s biggest center for hard drugs, and a black money machine. In the process, they committed Japan to conquer China next.

Manchuria’s economy was managed by Japan’s South Manchurian Railway Company, or Mantetsu – whose major shareholders were Emperor Hirohito, along with the Mitsui and Mitsubishi groups. The Japanese Army in Manchuria was called the Kwantung Army.  Mitsui worked with Black Dragon in coddling the Kwantung army, for only the army could get the Chinese concessions that Mitsui wanted. While Mantetsu managed the economy, the Japanese army applied strong arm tactics. In 1911, China’s imperial government collapsed, leaving Manchuria ever more vulnerable. Manchuria was ruled by war-lords, and the Japanese bribed them all. With the collapse of the central government, China descended into chaos, with various war-lords fighting for control, all across China. The Chinese Nationalist Party was founded by Dr. Sun Yat Sen, a Chinese visionary and hero. On his death, Chiang Kai Shek (CK) took over.

In May 1931, Chiang refused to extend the lease to Manchuria’s Kwantung Peninsula, demanding that Japanese forces pull out and relinquish the railway system that was Manchuria’s heart and soul. Tokyo refused. A false-flag incident provided the pretext for Japan to destroy any Chinese military in Manchuria, and in a series of lightening moves, brought 4 provinces of north-east China under its control, including Manchuria.

China had so many problems, it was unprepared for war. In 1933, When the League of Nations found Tokyo to be the aggressor, and asked Tokyo to withdraw, Japan refused and walked out of the League of Nations, committing Japan to a collision with its western rivals.

The Kwantung Army launched a hugely expansive effort to industrialize Manchuria overnight as a model of state-controlled capitalism. They spent recklessly. Between 1932 and 1938, 48 Manchurian cities were built, along with full infrastructure. Manchuria also became the proving ground for Japan’s bio-warfare program, called Unit 731. The huge Japanese business conglomerates were known as the zaibatsu, such as Mitsui, Mitsubishi, Sumitomo, the Fuyo group, among others. The Fuyo group included many companies, and it named its Manchurian subsidiary Nissan. After the war ended, it began making and selling cars under the Datsun brand, and during the 1980s, the name was changed back to Nissan.

The use of narcotics paid off for the Japanese big time. In addition to the huge profits it reaped, the narcotics helped to de-moralize the Chinese, such that when it came time to invade China proper, resistance would be very little.

Narcotics aside, by 1936, Manchuria’s boom proved to be an expensive failure. Manchuria’s economic weakness was dragging down Japan’s home economy as well. The child was cannibalizing its parent. There are many ways to plunder an economy, but the end result was the same. Like any binge, it did not last long. From the seizure of all Manchuria in 1932, till the failure of the army in 1936, only 4 years had passed.

From Tokyo’s point of view, Manchuria’s geographical location made control seem essential for Japan’s security; the Japanese Army had grown to fear the dual threats of Soviet communism and Chinese nationalism. The Kwantung Army was stoned on its success with narcotics. Many realized that the wealth generated by looting Korea and Manchuria was the result of armed robbery. While there was more to be stolen, why stop? They said the Manchurian Experiment could yet be made to work, if the army seized control of China, putting Japan in monopoly control of that vast consumer market.  If it did not work in Manchuria, it would work in China. And if it did not work in China, well, there was still Southeast Asia, India and Australia.

Conflict with the Rockefeller Empire

After World War 1 ended, Britain was on its knees, economically and financially. To maintain its grip on global power, it introduced the Imperial Tariff System, whereby all of its colonies became ‘closed-off’ to other economies, mainly American. What happened was that a victorious America began to expand its exports. These hit a wall – Britain’s Imperial Tariff System. It made importing US goods very expensive, and thus not able to compete with British made goods. The same happened when America needed to import raw materials from British colonies.  Between 1920 and 1940, Britain and France (the 2 key Rothschild countries) controlled Latin America, Africa, the Middle East, Australia and Asia.

So, a fed-up Rockefeller Empire put up plans to destroy the British Royal Navy, which was blocking American companies to do trade with British colonies. This operation was called PLAN BLUE. A similar operation was earmarked for Japan’s navy, called PLAN RED. And, finally, there was also an operation to invade Canada – called PLAN ORANGE. The aim of these 3 plans was to cripple Britain so badly that she would not be in a position to obstruct America’s expanding global empire. The 1929 stock market crash, and the subsequent Great Depression, put these plans on hold.

Meantime, the Standard Oil Group was making a fortune selling kerosene, and now gasoline. It was also drilling for oil in the Xhansi province of China. The Japanese had also secured concessions to drill for oil, and they found plenty! Soon, Standard Oil agents hired gangsters who destroyed much of the oil infrastructure belonging to Japanese companies. This made Japan mad. In 1927, Japanese warships sunk the USS Panay, which used to escort Standard Oil tankers, up China’s many rivers. This created tensions between America and Japan. As a result, the Rockefellers approached US President Hoover, and asked him to declare war on Japan. Hoover refused. So, the Empire turned to a fellow Wall Street operator, Franklin Delano Roosevelt, who was the Secretary of the Navy during World War 1. The Empire promised him the White House if he would declare war on Japan, when he became President. FDR agreed to the deal, and was duly made the US President, assuming office in January 1933.

In 1926, the Chinese Nationalists staged another of their periodic revolts against Rothschilds (Britain and France), and its Japanese ally. When the British invited the US commander of the Asiatic Fleet to join them in shelling Nanking, the capital of the Chinese Nationalists forces, US President Coolidge declined to permit the US fleet to join in this venture, thus bringing attention to the raw hostility existing between London and Washington.

The Japanese power elite were bitter as well. At the bidding of the Rothschilds, Japan had to fetch and carry; and then invariably been obliged to turn over to them the fruits of victory and plunder. To add insult to injury, Japan’s power elite were now obliged to pay the Rothschilds huge interest charges on the foreign loans taken in order to pay for military equipment and wars. The open break between Britain and the US placed the Rothschilds at the mercy of Japan, which demanded a heavy price from London: an agreement was signed giving Japan a wider participation in the commercial and political control of China, and conceding to Japan the occupation of Manchuria. Chinese Nationalist leader Chiang Kai-shek was defeated in 1927 by the combined British-French-Japanese forces. He still had his nationalist inspirations, and this time, the Rockefeller Group began to back him. The US would push for Chinese independence from the Rothschilds.

The Great Depression

Japan is an island nation. It has very little natural resources. To survive, it has to trade. When the Great Depression hit the world in the years between the years 1929 and 1936, Japan’s exports dropped rapidly, and this brought to the ruling elite the importance of taking over China.

The Depression had fateful consequences for Japan. Its right-wing nationalist forces blamed the financial elite of Japan (who were all closely tied to Rothschild finance) for their misery. The heads of some business groups were assassinated, along with their political leaders. Japan was now headed by a war-faction. Dissenters were silenced. To make matters worse, Manchuria was beginning to drain Japan’s economy. Instead of providing profits, now Tokyo had to subsidize losses. Profits were being made, but not by the government.

In the rest of China, Japan’s violent seizure of Manchuria provoked rage and apprehension. At the time, the image of China was as the sick man of Europe, a country of unparalleled corruption and vice, on the verge of collapse.

Japan’s Road to War

In 1932, Japanese and Chinese forces clashed over several weeks in Shanghai. In July 1937, the Japanese carried out a false-flag incident, and blamed the Chinese.  This was known as the Marco Polo incident. This escalated into general war that over the next 8 years, tied down 1 million Japanese troops in China. A few months later, the Japanese destroyed the city of Nanking, and unleashed the greatest atrocity of the war; some 300,000 civilians were killed, and more than 50,000 females of all ages were brutally raped.

It was at this point that Golden Lily was formed. Created by Emperor Hirohito, and run by many princes, it would plunder Asia of its hidden wealth. More on this in the articles to follow.

Increasingly worried about a cut-off of oil and other supplies from the US, Tokyo instituted a policy of self-sufficiency, and to try and eliminate economic dependence upon the US. When war broke out in Europe in September 1939, and even more so after May and June 1940, when the Germans swept through Belgium, Holland and France, overriding all resistance. With all the colonial powers overrun, with the exception of Britain, all of the Far East looked vulnerable.

 In June, Japan started on the road south. In September, the US banned exports of oil and other material to Japan. Since oil was the linchpin, and since Japan had no oil of its own, it had to capture the oil fields of Indonesia. The next day, Japan formally allied itself with Germany and Italy, against the US, Britain and Russia. World War 2 had begun.

In July 1941, Washington froze Japan’s bank accounts. The next day, Japan began its moves south. It occupied Indochina. Next, in order to safeguard its flanks, it was necessary for Japan to destroy the US fleet at Pearl Harbor, which was attacked on December 7, 1941. Now, America and Japan were at war.

Hawaii was but one piece of a far-flung military onslaught. The operation against Pearl Harbor was meant to protect the flank – to safeguard the invasion of the Indies and the rest of Southeast Asia by incapacitating the American fleet and, thereafter, to protect the sea lanes, particularly the tanker routes from Sumatra and Borneo to Japan. The primary target of this huge campaign remained the Indonesian oil fields.

 When it was launched, the Strike South moved with stunning speed. The day after Pearl Harbor, Shanghai’s International Settlement was overrun. Japanese troops landed in Thailand. Then 2 British ships were sunk off shore Singapore.  Japanese troops on folding bicycles moved swiftly down the Malay Peninsula, as others invaded Burma and Sumatra. By the end of December, Hong Kong, Guam and Wake had fallen, and Japan was invading the Philippines. By March 1942, resistance collapsed in Java. Bataan surrendered on April 9, Corregidor on May 6. Five months after Pearl Harbor, Japan controlled East and Southeast Asia.

 Next was the Battle of Midway in June 1942. The Japanese Navy wanted to finish the job they had started at Pearl Harbor, by obliterating the US Navy in the Pacific.  But, the Japanese were defeated in this battle. Midway was the turning point in the Pacific War; the end of the Japanese offensive. Thereafter, the balance would shift, as the relentless weight of American manpower, resources, technology, organizational ability, and sheer determination began to push the Japanese back across the Pacific in one bloody battle after another. The counterattack began in August, 2 months after Midway, when American troops landed on the island of Guadalcanal, off New Guinea. Six months of brutal fighting followed, but finally the US captured the island in what was called the first American offensive of the war. The aura of invincibility that surrounded the Japanese Army had been pierced. But it was only one small and costly step in the long struggle to exhaust the resources and will of an implacable enemy.

The war continued for another 3 years, every battle resulting in a defeat for Japanese forces. The main reason for their defeats was a lack of oil. The end was nearing for Japan. Under relentless US bombing, the countries wooden cities flamed into charred ruins, the economy ground ever more slowly, and the military’s ability to mount counter-attacks virtually vanished. The first atomic bomb was dropped on Hiroshima on August 6, 1945. Three days later, the second atomic bomb was dropped on Nagasaki. On 14 August, Japan surrendered. The war in the Pacific was over. The Asian aspect of World War 2 cost some 20 million lives.

There was no reason to nuke Japan, as its leaders had agreed to surrender by the end of July. The Americans refused to accept, as they had other plans. For the Rockefellers, the post war plans were clear: Stalin – the Soviet leader – had come to an “understanding” with the Rockefellers, and ‘in-tune’ with New York. But, just in case if Stalin wanted to renege, American power had to be shown to Stalin that the same could be done to any Russian city, or cities. In fact, plans were drawn up to nuke many Russian cities. But, Stalin played ball.

Post War Japan

  After Allied victories over  the next four years, which culminated in the Soviet invasion of Manchuria and the atomic bombings of Hiroshima and Nagasaki in 1945, Japan agreed to an unconditional surrender The war cost Japan its colonies and millions of lives. The Allies (led by the United States) repatriated millions of Japanese settlers from their former colonies and military camps throughout Asia, largely eliminating the Japanese empire and its influence over the territories it conquered

In 1947, Japan adopted a new constitution emphasizing liberal democratic practices. The Allied occupation ended with the Treaty of San Francisco in 1952 and Japan was granted membership in the United Nations in 1956. A period of record growth propelled Japan to become the second-largest economy in the world.  This ended in the mid-1990s after the popping of an asset price bubble, beginning the “Lost Decade”.

Between 1945 and 1949, Japan was re-organized to become an American/Rockefeller colony. From 1859 till 1935, Japan was a colony of the Rothschilds, until its key allies were murdered by the right-wing nationalists. The  main changes were as follows; Japan renounced the use of military force; many minor zaibatsu groups were broken up and sold off; the largest of the zaibatsu groups, such as Mitsui, Mitsubishi, Sumitomo, Fuyo Group, and a few others, had to give equity stakes to the Rockefellers, and to take ‘ instructions’ from New York, going forward. And so it has been till this day.

Unlike Germany, many of the war criminals in Japan were let off, with only a few being hanged. The reason for this was bribes paid to the CIA and General MacArthur –the US Consul of Japan. As explained earlier, over a period of 50 years, Japan had invaded 12 Asian countries, and plundered them on an industrial scale. Most of the plunder was shipped off to Japan. Part of this was handed over to the CIA. The very criminals in the war were now rehabilitated, and occupied sensitive posts- that would serve the CIA well. It was around the end of 1944, that John D Rockefeller Jnr allocated and divided the world for his sons. The eldest, John d the 3rd, was given Asia, while Nelson was given Latin America, David – Africa, and Lawrence – Europe.

John became known, thereafter, as “Mr. Asia”, and subsequent events in Asia bear his footprint or input- be it the war in Korea or Vietnam, or China. Part of his mission was to remove Rothschild influence, control, and power in Asia, and to bring it under his family’s control. In October 1949, China became a unified country, this time under the leadership of Mao Tse Tung- as head of the Chinese Communist Party. This victory by Mao was helped greatly by the US doing two things: – the first was a cut-off of military supplies to the Chinese Nationalists under Chiang Kai Shek, and the second the re-routing of these same supplies to the Chinese Communists under Mao. A unified China, under communist rule, ring-fenced, and surrounded by US forces, would prove to be an ideal setting to accomplish all of these aims.

The Genesis of the Cold War

In a coldly calculated plan, the Rockefeller Empire had financed a study called War & Peace Studies Program, which was completed over a 2-year period, from 1939-1941. It was a blue-print for the post-war world, encompassing every piece of land on earth. Topics covered the whole range – from economic, politics, finance, AND, as well as framing policies to reduce Rothschild influence globally.

Rothschild colonies – Britain and France had huge colonial empires, in Africa, the Middle East, Asia and Latin America. These, the Rockefeller Empire, wanted under its control, or within its orbit. The best way to achieve that was to extend the geographical borders of the Soviet Union into Europe (and that’s how we had 2 Europes between 1946-1990- East and West Europe). In Asia, the best way to achieve a similar geopolitical set-up was to allow the Communist Party in China to be in complete control.

And, this is how events played out, after 1945.

The reason is quite simple. By late 1948, the American press began a campaign about Communism, Reds, etc. igniting fear about godless communism taking over the world. Since the world, at that time, was defenseless against China and the Soviet Union, and the Rothschild countries of Britain and France were broke, and had no military forces to oppose the US.

In this manner, any country in the world that was terrified of communism, began to side with the US. Within a decade, the Cold War had divided the world into 2 camps; the West and Communism. Many former colonies of these 2 Rothschild countries eventually came under Rockefeller domination, through the US financial, economic and military aid, and then, later being admitted into another Rockefeller entity – the UN. To emphasize this point, by October 1949, the communist party attained power in China. Right on time, the Korean broke out, in 1950, which eventually led to a division of Korea, into two parts.

A similar set-up took place in Vietnam. Japanese military forces withdrew from Vietnam by September 1945. Vietnam was handed back to its colonial master- France – much to the dismay of nationalist forces in Vietnam – and led by Ho Chi Minh. He vowed to drive the French out of Vietnam. Between 1948 and 1954, Ho Chi Minh received covert military help from the Americans, which eventually led to the defeat of France in Vietnam. Not long after that, the country was also divided into two parts. And so, the threat of communist take-over became real to many countries in Asia, and around the world. And, this is a key reason that helped to spread American military influence globally. The Rothschilds still had control over Hong Kong, which would end in 1997.

 The Cold War

 Japan is a member state of the United Nations since 1956 and   is a member of the G7, APEC, and “ASEAN plus Three”. It is the world’s fifth largest donor of official development assistance, donating US$9.2 billion in 2014. In 2017, Japan had the fifth largest diplomatic network in the world.

Japan has close economic and military relations with the United States, with which it maintains a security alliance. The United States is a major market for Japanese exports and a major source of Japanese imports, and is committed to defending the country, with military bases in Japan.  Japan signed a security pact with Australia in March 2007 and with India in October 2008.

Japan’s relationship with South Korea had historically been strained because of Japan’s treatment of Koreans during Japanese colonial rule, particularly over the issue of comfort women. In 2015, Japan agreed to settle the comfort women dispute with South Korea by issuing a formal apology and paying money to the surviving comfort women.

 Japan is engaged in several territorial disputes with its neighbors. Japan contests Russia’s control of the Southern Kuril Islands, which were occupied by the Soviet Union in 1945. South Korea’s control of the Liancourt Rocks is acknowledged but not accepted as they are claimed by Japan. Japan has strained relations with China and Taiwan over the Senkaku Islands and the status of Okinawa. Japan maintains one of the largest military forces in Asia.

The Economy

Japan is the third largest national economy in the world, after the United States and China, in terms of nominal GDP, and the fourth largest national economy in the world, after the United States, China and India, in terms of purchasing power parity as of 2019. As of 2019, Japan’s labor force consisted of 67 million workers.  Japan has a low unemployment rate.   Around 16 percent of the population was below the poverty line in 2017. Japan today has the highest ratio of public debt in the world.  Its saving grace is that all this debt is internal.

Japan’s exports amounted to 18.5% of GDP in 2018.  As of 2019, Japan’s main export markets were the United States (19.8 percent) and China (19.1 percent). Its main exports are motor vehicles, iron and steel products, semiconductors and auto parts. Japan’s main imports are machinery and equipment, oil, foodstuffs, chemicals, and raw materials for its industries.

 The variant of capitalism has many distinct features: keiretsu enterprises are influential, and lifetime employment and seniority-based career advancement are common in the Japanese environment. Japan has a large cooperative sector, with three of the ten largest cooperatives in the world, including the largest consumer cooperative and the largest agricultural cooperative in the world as of 2018. Japan ranks highly for competitiveness and economic freedom.

Financial Doldrums the Lost Decades 1991-2021

By the mid-1980s, Japan was on a roll- financially speaking. Its products were in great demand, exports were rising. Soon, Wall Street came to a decision to cut Japan down to size. The result was the Plaza Accords of 1987.

The Plaza Accord Japanese was a joint–agreement signed on September 22, 1985, at the Plaza Hotel in New York , between France, West Germany, Japan, the United Kingdom, and the United States, to depreciate the U.S. dollar in relation to the French franc, the German Deutsche Mark, the Japanese yen and the British Pound sterling by intervening in currency markets. The U.S. dollar depreciated significantly from the time of the agreement until it was replaced by the Louvre Accord in 1987.  The Plaza Accord contributed to the Japanese asset price bubble of the late 1980s.

The tight monetary policy of Federal Reserve’s Chairman Paul Volcker and the expansionary fiscal policy of President Ronald Reagan’s first term in 1981-84 pushed up long-term interest rates and attracted capital inflow, appreciating the dollar. As the dollar’s appreciation kept rising and the trade deficit grew even more, the second Reagan administration viewed currency intervention in a different light. In January 1985 James Baker became the new Treasury Secretary.

From 1980 to 1985, the dollar had appreciated by about 50% against the Japanese yen, Deutsche Mark, French franc, and British pound, the currencies of the next four biggest economies at the time. The negative prospect of trade restrictions spurred the White House to begin the negotiations that led to the Plaza Accord.

The devaluation was justified to reduce the U.S. current account deficit, and to help the U.S. economy to emerge from a serious recession that began in the early 1980; this was due to the sky-high interest rates from 1980 till 1983.

 The Plaza Accord failed to help reduce the US–Japan trade deficit, but it did reduce the US deficit with other countries by making U.S. exports more competitive. The Louvre Accord was signed in 1987 to halt the continuing decline of the U.S. dollar. The signing of the Plaza Accord was significant in that it reflected Japan’s emergence as a real player in managing the international monetary system. However, the recessionary effects of the strengthened yen in Japan’s economy created an incentive for the expansionary monetary policies that led to the Japanese asset price bubble of the late 1980s. Many blamed the Plaza Accord for the Japanese asset price bubble, which progressed into a protracted period of deflation and low growth in Japan known as the Lost Decade, which has effects still heavily felt in modern Japan.

Let me put it in more simple terms.

Prior to 1985, it took 300 yen to buy $1. After the Plaza Accords were signed, the exchange rate strengthened to $1 = 100 Yen.  This boosted the purchasing power of the Yen. As a result, Japanese companies and banks began investing offshore- in many regions, especially in the US – buying Treasury bonds, real estate, hotels, and corporations. It also increased the size of Japanese banks-making them into global giants. Internally, both the financial and the economy was turbo-charged.

The BIS Cripples Japan

 After the stock market crash of October 1987, the Bank for International Settlements (BIS)- the central bank of all central banks (and a Rothschild entity), decided on a level playing field. As of 1992, the BIS had mandated that all banks must have a capital adequacy ratio (CAR) of 8%. What this means is that for every $100 that the bank lends out, the bank must have its own capital of $8, giving a CAR of 8%.

 The new ratio was not so bad for western banks, since their CAR’s were already at levels of 5%. But, Japan was different, in that its banks had a CAR of 1%. This obviously meant that the cost of capital for Japanese banks was 20% of that of the western banks.  The Americans cried foul after the October 1987 crash, and resulted in the BIS mandating new CAR rules in 1988.

 It was in the international lending business that the Japanese banks were taking a lot of business away from American banks. A senior Wall Street banker complained: “The Japanese banks are profitable in part because they are subsidized at home with a cheap deposit base. They have 14% of our market, while we have 1 % of theirs’. Asset inflation is giving them a cost advantage. Is it fair.  The international inequality in capital costs arising from Japan’s highly controlled financial environment was threatening the profitability of US banks”.

 To meet the new BIS ruling, Japanese banks had to add huge amounts of capital, or sharply scale down their international lending.  Here is an illustrative example:

Bank loan book        = $1 billion. Capital needed prior to new rules     = $10 million.

Bank loan book        = $1 billion. Capital needed after new rules          = $80.

Or, if the bank did not  , or could not,  raise new capital, and its capital of $10 million would then be sufficient  to support a loan book of $125  million, which meant calling in all the loans outstanding, until the bank reaches the CAR of 8%.

Now, bankers, by their very nature, have greed in their DNA. Which banker would VOLUNTARILY, cut back on business? He would be fired!

The Exception

The BIS granted an exception to Japanese banks, which was to haunt the Japanese financial and economic system, to this day. It effectively removed Japan as a competitor to Wall Street, on international lending. Although the BIS is a Rothschild entity, the US Fed, was not a member until the late 1980s. This move by the BIS, was meant to reward the Rockefeller Empire, in its bid to remove the competitive threat posed by Japan’s bank. And, what is the family motto: “COMPETITION IS A SIN!”

Since most banks are part of one major zaibatsu group or another, with each division having share-holdings in the other companies of their individual groups, the Japanese banks were holding shares of many of the top companies in Japan. For example, the Mitsubishi Bank (since merged with other banks in the group) has holdings in all the other Mitsubishi group companies. The same goes for all the major Japanese companies, like Mitsui, Sumitomo, Fuyo Group (comprising Hitachi, Nissan , etc.), and so on. These stock holdings held by Japanese banks were now to be taken as part of their core capital, thus enabling them to reach the BIS CAR rule of 8%.

 In 1989, Japan was at the apex of its intoxicating “bubble economy”. Fueled by the rise in the stock market, the Nikkei 225, Tokyo’s stock market index boomed. Associated with Japan’s sudden leap to economic super-power status, financial asset prices were rocketing off the charts. Banks and companies were raising unlimited amounts of capital several times more cheaply than anywhere else in the world. All cylinders of the economy were thundering ahead at breakneck speed. Finance was visibly driving the real economy out of line with economic fundamentals .At the same time, low domestic interest rates helped export funds abroad in amounts far exceeding the huge surplus earned from international trade.  

The Trap is Sprung

In December 1989, the BIS appointed a new head, Mieno of the Bank of Japan- the country’s central bank. He immediately raised interest rates, and curtailed the supply of money. The Nikkei 225 index, which peaked at 39,000, now began a slow decline; with a lag, real estate prices peaked out, and started to decline.  At its height a few months earlier, the value of the Tokyo property market was more than the value of all real estate in California!

 After having gained nearly $4 trillion between 1985 and 1989, the stock market lost nearly $3 trillion in 2 years. It was yet another example of economically fruitless financial volatility unhinged from economic fundamentals.

 The effect was as if the car in the Japanese convoy, which had been zooming along the international financial highway at 200 km an hour, abruptly slammed on its brakes. With the cost of capital suddenly raised to world levels, Japan’s capital explosion went bust. The economy became stagnant. Business failures and bad debts mounted. Japanese banks, which had looked so invincible in the 1980s, suddenly faced the worst crisis in post-war history.

 As stock prices collapsed, so did the unrealized capital gains in the banks’ portfolios. The illusion that puffed up Japanese banks’ capital cushion was suddenly deflating. These shares were bought at very low prices, in prior years and decades.  As the Nikkei climbed, so did the value of the shares. This helped the banks’ CAR ratios. Now with a treacherous asset bubble deflation, the new BIS rules were finally biting. But, what goes up must come down, and so with the Nikkei.

As the share prices on the Nikkei fell lower, it was realized that at a certain point on the Nikkei, the top 20 Japanese banks would be insolvent. This point was assumed to be 14,000.

 Meanwhile, the banks’ capital base faced a massive write-down from loan losses in the Japanese real estate bust, as well as from their overseas misadventures in property and leveraged buy-out loans. Since raising fresh equity was impossible, the banks shrank assets at home and abroad- meaning NO MORE LOANS. The government stepped in to help the banks by buying shares on the stock market. The exception that the BIS granted to the Japanese financial system has now become an albatross hanging around the neck of the international financial system.

 Japanese banks’ bad debts reached some $1.5 trillion. It was not until 2017 that the Nikkei climbed to 17,000. It is currently around 20,000- 21,000. Since 1993, Japan has been on life support, with a stagnant economy, falling margins, and bleak prospects. It was only the loot that Japan had stashed, that enabled the big 5 amongst the zaibatsu to carry on. The loot here refers to Yamashita’s Gold. Japan is a vassal colony of the Rockefeller Empire. It had sent troops in support of America’s wars in the Middle East- in Afghanistan and Iraq.

Japan Gets HAARPED

Japan has been a cash cow for the Rockefeller Empire since 1945. Following the 2008 stock market crash, there was a dire need for liquidity. Do remember, as explained in earlier articles, the Rockefeller Group owned 34 % of the Federal Reserve Bank- America’s central bank. This shareholding was allocated amongst various family entities and trusts. The Rothschild family owned the rest of the Federal Reserve.

In October 2010, JP Morgan went bankrupt. It was a key bank on Wall Street; it served the Rothschilds very well since 1900. JP Morgan owned 17% of the Fed. In a classic case of financial warfare, the Rockefellers- using derivatives- brought about the bankruptcy of JP Morgan. In October, Chase Manhattan bought JP Morgan. With this move, the Rockefellers now owned 51% of the Fed. They now had CONTROL.

In December 2010, David Rockefeller requested that Japan inject cash into the Fed. Cash was needed on Wall Street. Japan had it through its postal savings bank – an amount of some $5 trillion plus! This was not a sudden request; as David was trying to get his hands on this for years, but faced tough resistance from the ruling elite in Tokyo.

 It was time to use HAARP on Japan. The target was the eastern seacoast of Japan, and the Fukushima nuclear power plant.  An undersea nuke was used to guarantee enough tsunami height to swamp the Fukushima diesel generators at this nuclear plant. The huge drilling ship, the Chikyu Maru, positioned itself over a point in the sea, and drilled a very deep hole (over a period of two months January-February) some 10 kilometers under the sea bed, right smack in the middle of an earthquake fault line. In this hole, a nuke was placed.

Japan’s financial year-end for its businesses is March 31. This attack was meticulously timed to have the greatest impact on Japan Inc.

On March 10, 2011, the nuke went off.  A huge 9 Richter scale earthquake and a tsunami hit Japan, causing incredible amounts of damage, injuries and death. Still, the ruling elite of Japan refused to give in to David’s threats.  New York now threatened to use HAARP to cause Mt. Fuji to erupt; Prime Minister Naoto Kan wired an amount of $600 billion to the Federal Reserve! Such are the games being played out by the 2 families. In all of Asia, the most tightly controlled American colonies are Taiwan, Japan, South Korea, Indonesia and the Philippines.

Japan, is more tightly controlled by the Rockefeller family, than ever before. Many of the ruling elite in Japan hate this, but are essentially powerless to do much about it. The reason has to do with a very forbidden topic, called “Yamashita’s Gold”, which we will extensively discuss in the next few articles. This is, undoubtedly, the world’s most closely guarded secret in the world of international finance, and it will shock you to the core. Stand by for it folks!

One thought on “The Geopolitics of Japan

  1. There has been no evidence of JP Morgan going bankrupt in 2010.

    Also, in another article, you wrote that JP Morgan went bankrupt in the late 1990s and was merged with Chase Manhattan. There wasn’t any news that JP Morgan merged with Chase Manhattan due to bankruptcy.

    Could you please clarify the date for this?

    There is also no news about a $600 billion monetary transfer by Naoto Kan to the Fed. The movement of such a large sum of money would surely have made the news, no?

    However, there was a JPY 600 billion JGB offering under Naoto Kan’s administration.

    Could you clarify these? While you have a lot of good insights, such errors and inconsistencies affect the credibility of your writing.

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