DEALS. Money is being floated like candy. Japan’s ‘Deal’ is worth $550 billion. Japan’s debt is $9.56 Trillion on GDP of $4.28 Trillion. Interest is $123 billion per year and like all western countries, deficit spending means making more money worthless. Deficit spending is roughly 11% of the Budget. Chine is their largest export partner with total exports valued at $691 billion. FUN Perspective: If you spend $1,000,000 a day it would take you 10441 years and 2 months to spend all of Japan’s debt.
So where will the $550 billion come from? Like the US, Japan has an aging problem and those old guys are consuming 33% of government ‘spending on social security’. GDP growth is in the proverbial twalette at 1% with projections showing it falling to .6% for 2026 and 2027. Hardly a stellar place from which money printing will ultimately collapse the economy. Yet, no one seems to care, least of all their government or ours.
The White House and its newly installed press corps are touting the deal as a rare earth minerals boondoggle! Reality: Japan does not have significant rare earth mineral production currently, but it is actively developing it through test mining of deep-sea mud near Minamitori Island, scheduled to begin in 2026. This ‘mud’ would require significant processing and refining which hasn’t been developed yet… either.
Minamitori Island isn’t an island at all, it is an Atol of roughly 370 acres of baren land. Located 1100 miles from Tokyo, the Atol is strategic in that it enables Japan to claim a 428,875-square-kilometre (125,040-square-nautical-mile) exclusive economic zone in the surrounding Pacific waters. If rare earths are found and the mining commences, production would begin sometime in 2028 or 2029 with no information as to – how much.
Somehow, this mineral play is billed as “reducing dependence on China”. Given advancements in technology are hypersonic – will rare earths be replaced by then? Empty caverns? Raped earth?
Sanae Takaichi, the PM Minister of Japan assumed office October 21, 2025. She attended the Konosuke Matsushita Institute which advocates training in politics via studying leadership training, public speaking, internships, foreign languages, work on a factory assembly line, meditation and the martial arts. A member of the liberal party, she began her career as a television host. As PM she advocates all things western including recognizing Russia, China and North Korea as threats to the globe and is pro-immigration.
As the meeting with Xi Jinping looms, Trump continues to adhere to talking points while Xi Jinping is monumentally silent. A poker player. The Tik Tok deal is still in the fray. But the cards are still in China’s hands regarding rare earths which Trump desperately needs yesterday. Not in 2028. Without which our military comes to a standstill after selling our weapons to Ukraine and Israel with few replacements, example:
Lockheed: Equity between 2022 and 2024 down 33%. Book value down 50% and debt up 33%. EPS down 38%
South Korea’s SK Hynix, a critical supplier of chips to Nvidia has already sold out its 2026 inventory for AI data center technology and reported an increase in operating profit by 62% as of September. Hynix major customers include; Microsoft, Dell, Apple, Asus, and HP. Their parent companies include SK Group and Hyundai Group which operate as ‘chaebols’ or family units. SK Group has 186 subsidiaries.
In contrast to Japan and western countries, South Korea is the tortoise with their economy having reached 13th globally. Their success is in their manufacturing sector wherein they are now a global leaders in semiconductors, electronics, and ship building.
INTEL is literally deteriorating to nothing unable to compete, stigmatized by ever increasing debt, poor management and government bailouts. Their planned expansion of factories in Ohio have stumbled out of the gate with completion dates of construction via Bechtel pushed from 2024 to 2030 … maybe. Government subsidies have failed to create any benefit except for the CEO whose compensation package is $69 million and 10% of the company given he has performed in such a stellar fashion…since taking the position in March 2025.
But this is the essence of what happens when American education systems fail spectacularly: The new CEO of Intel is Lip Bu Tan of Malaysian descent. The CEO of AMD is Lisa Su – Chinese, the CEO of Nvidia is Jensen Huang – Taiwanese, the CEO of TSMC is CC Wei, the CEO of Broadcom is Hock E Tan and the CEO of ASUS is Samson Hu. These are the companies operating as true thoroughbred race horses…
The White House claims the $550 billion Japan DEAL is for investment in American Companies/Industries. However, no details as to how or what the deal entails or where the funds will come from as Japan’s Soft Bank gives an ‘eye roll’.