1 – Western civilization.
2 – The 1989 Japanese financial market.
3 – Further disappointment.
1 – Western civilization.
But can that we in the West and our civilization does not have anything to learn from other civilizations?
It seems that recently happened the other way around. As well as the countries that were part of the British Empire adopted the law systems of that Empire, the same way the Asian countries (Eastern) and Africans have adopted Western financial philosophy. We will give a good example concerning Japan.
2-The Japanese financial market of 1989.
The Japan lost World War II and had to accept the administration of General Douglas Mac Arthur, as Supreme Commander of allied forces in the country: perhaps this is why Japan has had Western influences, but this is not a good reason to justify what we will.
Japanese law say that a corporation should evaluate prudently (a term abused …) acquired investments: in particular, must evaluate an asset to lower price between the purchase price and the market price.
Example: Imagine that Mitsubishi Bank bought in 1985 Toyota shares at a price of 500 yen. Until it sells, Mitsubishi must evaluate the actions Toyota to 500 yen until the market has a higher value; the market value when they fall below the 500 yen. In this way, the shareholders of Mitsubishi would be protected against Pindaric budgets. I used the verb ‘ would be ‘ …
This law had never been enforced until 1989, simply because Japan was the bulwark of the West against China and Urss monsters, and then in return could be done in economics that he wanted: Japanese stocks were matches with Nikkei 225 worth about 300 points in the postwar period, a value exactly equal to Dow Jones. In 1989 the Nikkei 225 was 40000, while the Dow was below 3000 points, therefore the gain of the Dow Jones, already high, was nothing compared to the Japanese market. This just because Japan had powers blackmailers against Westerners: for example, the Japan applied the dumping from 1947 to 1989, with huge profits for the companies of the rising sun. And everyone cried Japanese miracle: was the worst protectionism instead.
Then, in October 1989, the Berlin wall …
Westerners said in Japan that the good times were over: even today, after 24 years, the Nikkei is around a third of the value of 1989.
Returning to our speech, at one point, for example, in 1992, the actions in the Japanese financial portfolio was worth nothing, and then the same financial (and banks) were to take the books, take them to court and ask for the bankruptcy.
Of course, having them learned secret arts of the Western politicians, avoided that this happens: Japanese authorities said that, by way of exception, the measures could be assessed differently, bla … bla …
But such exceptional cases! The law HAS NEVER BEEN APPLIED and was rejected at the first opportunity! Protection of politicians linked to finance, with good peace of the Western model.
The West and their firends have centered so ridiculous laws? Are there any solutions?
Answer yes to the first question: are ridiculous laws.
The second question we will answer no: the politician cannot be the one that defines uniquely laws and universal. Can deal with (should) just a few things and instead of topics such as exposed and as well as for the argument of the previous post, it should occupy an authority with strong moral connotations: it is clear that no politician warns the moral contradictions exposed or don’t want to warn, which is even worse.
There are many ideas that have been circulating for more than a century in this regard and many of us have not even heard because politicians have their modesty…
Equally important are the interests that impede these ideas, although in the long run this does not makes sense to anyone. Anyone should not in fact spread the plague.
More on that. I look forward to your ideas.