The effects on the Japanese economy

•       The effects on the Japanese economy, says Goodson, were dramatic:

The effects on the Japanese economy were dramatic. Once the shackles of usury had been removed, sustained improvement took place in the Japanese economy. During the 1931-41 period, manufacturing output and industrial production increased by 140% and 136% respectively, while national income and Gross National Product (GNP) were up by 241% and 259% respectively.  These remarkable increases exceeded by a wide margin the economic growth of the rest of the industrialized world. In the labor market unemployment declined from 5.3% in 1930 to 3.0% in 1938. Industrial disputes decreased with the number of stoppages down from 998 in 1931 to 159 in 1941. In 1932 the privately-owned Bank of Japan (Nippon Ginko) was reorganized as a state bank, administered exclusively for the accomplishment of national interests.. The reform was completed in 1942 with the Bank of Japan Law, which was modeled on the 1939 Reichsbank Act of Germany. Goodson writes: The bank was “to assume the task of controlling currency and finance and supporting and promoting the credit system in conformity with policies of the state to ensure the full use of the nation’s potential.”..... The old principle of priority for commercial finance was abolished and instead the bank was empowered to oversee facilities for industrial finance. The bank was also authorized to make unlimited advances to the government without security, and to subscribe for and to absorb government bonds.

•       Stephen M. Goodson, a former director of the South African Reserve Bank 2008: “The Real reason the Japanese attacked Pearl Harbor.” He wrote that during the 1930s, Japan rapidly expanded its industrial production, while most of the rest of the world stagnated. By 1941, it had become the leading economic power in East Asia, and its exports were steadily replacing those of America and England. Goodson linked this feat to the 1929 lecture tour of Major C. H. Douglas: Douglas’s economic theory advocated the transfer of the money creation process from private banks, which create money out of nothing as an interest-bearing debt, to the state. This government created money he termed social credit. “ He also favored the payment of a basic income or national dividend to each citizen. This dividend would provide consumers with the additional buying power necessary to absorb all the current production of goods in a non-inflationary manner.  Both the Bank of Japan and the German Reichsbank with their systems of state creation of the money supply at zero interest – and the inevitability that those systems of finance would be replicated by other countries, in particular those of the proposed Greater East Asian Co-prosperity Sphere – posed such a serious threat to the private investors of the US Federal Reserve Bank, that a world war was deemed to be the only means of countering it. In July 1939 the United States unilaterally abrogated the Treaty of Commerce of 1911, thereby restricting Japan’s ability to import essential raw materials..... By means of the economic blokade, anoose was being placed around Japan’s neck.......After numerous diplomatic initiatives including the offer of a summit on August 8, 1941 had failed, Japan was forced into attacking America in order to maintain her prosperity and secure her existence as a sovereign state. After defeat japan could not have any military beyond defensive military forces. One of the first acts of the United States occupation forces in Japan in September 1945 was to restructure the Japanese banking system, so as to make it compliant with the norms of the international bankers i.e. usury. The unrestricted financing of the state by the Bank of Japan was abolished and the large industrial combines, the Zaibatsu, were dismantled.

It is] a war of financiers and fools, though most people, on the Allied side at any rate, do not yet see very clearly how financiers come into it.-----हास्टिंग्स रस्सल