Economic growth in Japan but external factors remain troublesome

Joachim de Villiers and Lee Jay Walker 

Modern Tokyo Times

The economy of Japan despite all the scaremongering continues to show great resilience and this is despite many massive internal and external factors. Of course, the events that unfolded on March 11 led to major economic convulsions and the loss of life was enormous but on top of this is also the global economic situation. Therefore, for Japan to rebound when America and the European Union are suffering so much is also remarkable.

Tens of thousands of people died because of the potent and deadly tsunami which was unleashed by the 9.0-magnitude earthquake. This was followed by a huge nuclear cloud which hung over Japan and the mass media didn’t help. Therefore, many embassy staff fled alongside foreign nationals and this uncertainty put enormous strains on the economy.

Also, for major manufacturing companies who were based in the areas hit by the earthquake and tsunami, it was essential to restructure and solve the huge cog in the machinery which was hindering the supply chain. However, corporate Japan and the government pumped vast sums into the economy and the banking system. Therefore, a huge capital base was built in order for Japanese companies to obtain funds internally (applies to companies hit by March 11) and also to expand internationally because of the strong yen.

Not only this, the weakness of the American dollar and the Euro meant that exporters would have been hit badly during natural economic events. Yet despite everything, including typhoon Talas which killed many in Wakayama and other prefectures, Japan’s economy is showing signs of economic growth and a rebound was announced.

This applies to gross domestic product growing by 1.5% and while the government of Japan can’t rest on these laurels, it is still a remarkable achievement given the reality of 2011 in Japan. Of course, the ill-winds of America and the European Union will continue to hinder further economic progress but a base is being built and stability is the first step after such internal disasters this year related to nature.

In an earlier article by Modern Tokyo Times it was stated that “If you want to study about the uniqueness of Japanese capitalism and how companies respond to enormous adverse conditions, then the Tankan survey by the Bank of Japan will make you fully aware. After all, the devastation caused by March 11 and the ongoing crisis at the Fukushima Daiichi nuclear plant would have caused most nations to bow down to mass uncertainty.  However, welcome to corporate Japan where the response may seem slow but once the juggernaut starts, then it eats into the crisis and returns to normal.”

“Let us also remember that unemployment in America remains within the 9% range to just below 10% despite enormous debt borrowing and having no internal devastating consequences to face.  Also, remember, that the dollar is very weak and should be helping exporters but in Japan the opposite is happening because the yen is too strong and causing many problems.”

“However, unemployment in Japan is falling despite all these negatives to below 4.5% and it is Japan and not America which is trying to help the European Union and crisis hit Greece.  This applies to buying more Eurobonds and making it fully aware that Japan will step in and help Greece providing a sound economic policy is put on the table.”

Therefore, the announcement that Japan’s economy is picking up is remarkable given the adverse conditions but sadly the economic situation isn’t out of the woods. This applies to external factors like the high yen; the sluggish global economy; recent floods in Thailand hindering Japanese companies with regards to the supply chain; the ensuing crisis in Europe and the “Euro cloud;” and other factors.

If the global economy was in a healthier condition and the international exchange rates of major currencies were based on realism; then Japan would have more hope for optimism. However, it is hard to imagine other nations rebounding so quickly from such a traumatic event and for this fact alone it is clear that Japan can recover quickly from major internal convulsions.

The next quarter may show that all is not well because of external factors and consumer spending internally remains problematic. Yet the scaremongering of the demise of Japan can be seen for what it was.

leejay@moderntokyotimes.com

http://moderntokyotimes.clom

Economic growth in Japan but external factors remain troublesome

Joachim de Villiers and Lee Jay Walker 

Modern Tokyo Times

The economy of Japan despite all the scaremongering continues to show great resilience and this is despite many massive internal and external factors. Of course, the events that unfolded on March 11 led to major economic convulsions and the loss of life was enormous but on top of this is also the global economic situation. Therefore, for Japan to rebound when America and the European Union are suffering so much is also remarkable.

Tens of thousands of people died because of the potent and deadly tsunami which was unleashed by the 9.0-magnitude earthquake. This was followed by a huge nuclear cloud which hung over Japan and the mass media didn’t help. Therefore, many embassy staff fled alongside foreign nationals and this uncertainty put enormous strains on the economy.

Also, for major manufacturing companies who were based in the areas hit by the earthquake and tsunami, it was essential to restructure and solve the huge cog in the machinery which was hindering the supply chain. However, corporate Japan and the government pumped vast sums into the economy and the banking system. Therefore, a huge capital base was built in order for Japanese companies to obtain funds internally (applies to companies hit by March 11) and also to expand internationally because of the strong yen.

Not only this, the weakness of the American dollar and the Euro meant that exporters would have been hit badly during natural economic events. Yet despite everything, including typhoon Talas which killed many in Wakayama and other prefectures, Japan’s economy is showing signs of economic growth and a rebound was announced.

This applies to gross domestic product growing by 1.5% and while the government of Japan can’t rest on these laurels, it is still a remarkable achievement given the reality of 2011 in Japan. Of course, the ill-winds of America and the European Union will continue to hinder further economic progress but a base is being built and stability is the first step after such internal disasters this year related to nature.

In an earlier article by Modern Tokyo Times it was stated that “If you want to study about the uniqueness of Japanese capitalism and how companies respond to enormous adverse conditions, then the Tankan survey by the Bank of Japan will make you fully aware. After all, the devastation caused by March 11 and the ongoing crisis at the Fukushima Daiichi nuclear plant would have caused most nations to bow down to mass uncertainty.  However, welcome to corporate Japan where the response may seem slow but once the juggernaut starts, then it eats into the crisis and returns to normal.”

“Let us also remember that unemployment in America remains within the 9% range to just below 10% despite enormous debt borrowing and having no internal devastating consequences to face.  Also, remember, that the dollar is very weak and should be helping exporters but in Japan the opposite is happening because the yen is too strong and causing many problems.”

“However, unemployment in Japan is falling despite all these negatives to below 4.5% and it is Japan and not America which is trying to help the European Union and crisis hit Greece.  This applies to buying more Eurobonds and making it fully aware that Japan will step in and help Greece providing a sound economic policy is put on the table.”

Therefore, the announcement that Japan’s economy is picking up is remarkable given the adverse conditions but sadly the economic situation isn’t out of the woods. This applies to external factors like the high yen; the sluggish global economy; recent floods in Thailand hindering Japanese companies with regards to the supply chain; the ensuing crisis in Europe and the “Euro cloud;” and other factors.

If the global economy was in a healthier condition and the international exchange rates of major currencies were based on realism; then Japan would have more hope for optimism. However, it is hard to imagine other nations rebounding so quickly from such a traumatic event and for this fact alone it is clear that Japan can recover quickly from major internal convulsions.

The next quarter may show that all is not well because of external factors and consumer spending internally remains problematic. Yet the scaremongering of the demise of Japan can be seen for what it was.

leejay@moderntokyotimes.com

http://moderntokyotimes.clom

Joachim de Villiers and Lee Jay Walker 

Modern Tokyo Times

The economy of Japan despite all the scaremongering continues to show great resilience and this is despite many massive internal and external factors. Of course, the events that unfolded on March 11 led to major economic convulsions and the loss of life was enormous but on top of this is also the global economic situation. Therefore, for Japan to rebound when America and the European Union are suffering so much is also remarkable.

Tens of thousands of people died because of the potent and deadly tsunami which was unleashed by the 9.0-magnitude earthquake. This was followed by a huge nuclear cloud which hung over Japan and the mass media didn’t help. Therefore, many embassy staff fled alongside foreign nationals and this uncertainty put enormous strains on the economy.

Also, for major manufacturing companies who were based in the areas hit by the earthquake and tsunami, it was essential to restructure and solve the huge cog in the machinery which was hindering the supply chain. However, corporate Japan and the government pumped vast sums into the economy and the banking system. Therefore, a huge capital base was built in order for Japanese companies to obtain funds internally (applies to companies hit by March 11) and also to expand internationally because of the strong yen.

Not only this, the weakness of the American dollar and the Euro meant that exporters would have been hit badly during natural economic events. Yet despite everything, including typhoon Talas which killed many in Wakayama and other prefectures, Japan’s economy is showing signs of economic growth and a rebound was announced.

This applies to gross domestic product growing by 1.5% and while the government of Japan can’t rest on these laurels, it is still a remarkable achievement given the reality of 2011 in Japan. Of course, the ill-winds of America and the European Union will continue to hinder further economic progress but a base is being built and stability is the first step after such internal disasters this year related to nature.

In an earlier article by Modern Tokyo Times it was stated that “If you want to study about the uniqueness of Japanese capitalism and how companies respond to enormous adverse conditions, then the Tankan survey by the Bank of Japan will make you fully aware. After all, the devastation caused by March 11 and the ongoing crisis at the Fukushima Daiichi nuclear plant would have caused most nations to bow down to mass uncertainty.  However, welcome to corporate Japan where the response may seem slow but once the juggernaut starts, then it eats into the crisis and returns to normal.”

“Let us also remember that unemployment in America remains within the 9% range to just below 10% despite enormous debt borrowing and having no internal devastating consequences to face.  Also, remember, that the dollar is very weak and should be helping exporters but in Japan the opposite is happening because the yen is too strong and causing many problems.”

“However, unemployment in Japan is falling despite all these negatives to below 4.5% and it is Japan and not America which is trying to help the European Union and crisis hit Greece.  This applies to buying more Eurobonds and making it fully aware that Japan will step in and help Greece providing a sound economic policy is put on the table.”

Therefore, the announcement that Japan’s economy is picking up is remarkable given the adverse conditions but sadly the economic situation isn’t out of the woods. This applies to external factors like the high yen; the sluggish global economy; recent floods in Thailand hindering Japanese companies with regards to the supply chain; the ensuing crisis in Europe and the “Euro cloud;” and other factors.

If the global economy was in a healthier condition and the international exchange rates of major currencies were based on realism; then Japan would have more hope for optimism. However, it is hard to imagine other nations rebounding so quickly from such a traumatic event and for this fact alone it is clear that Japan can recover quickly from major internal convulsions.

The next quarter may show that all is not well because of external factors and consumer spending internally remains problematic. Yet the scaremongering of the demise of Japan can be seen for what it was.

leejay@moderntokyotimes.com

http://moderntokyotimes.clom

Typhoon Talas: 54 dead and many still missing

James Jomo

Modern Tokyo Times

The death toll from Typhoon Talas continues to rise and latest reports state 54 dead and another 55 people are still unaccounted for.  This would indicate that more bodies will be found in the next few days and the devastation is also causing major problems for rescue workers.

Parts of Wakayama prefecture and Nara prefecture bore the brunt of Typhoon Talas but other areas were also hit.  The Kii Peninsula is a very beautiful part of Japan but many communities reside in remote areas and the infrastructure in parts of this region relies heavily on a limited number of major roads. 

Therefore, rescue teams are being hampered by both the devastation of Typhoon Talas and the terrain of this part of Japan. This fact is behind the reason why 480 people are still stranded after many days since the typhoon struck Japan and the same can be said about the fact that many people are still missing.

The Ground Self-Defense Force of approximately 2,000 personnel is impacting heavily on the effectiveness of the search and rescue mission. Also, approximately 500 police officers are involved and clearly their local knowledge is highly valued and both are working closely together.

This can be seen by the total of stranded people being reduced significantly from the day before.  Therefore, the number of people cut off after many days were reduced by around 2,000 people.  At the same time helicopters are dropping off essential supplies and a great deal of focus is being put on water supplies and electricity. 

In my last article about this ongoing crisis I added that “At the height of the storm the strength reached 108km/h and many homes were destroyed and some were swept away by the brute force which created floods and landslides.  Most of the dead resided in Wakayama prefecture and rescue teams are in the area and looking for people who are missing.”

“Nara was also badly hit and just like Wakayama you have many remote villages and this will add to the uncertainty about the final loss of life total.  Totsukawa in Nara was badly hit and mudslides happened in Tanabe in Wakayama.”

Nachikatsuura and Shingu both suffered badly in Wakayama prefecture and all areas hit will need major financing after the rescue and search operation is over.  Therefore, it is essential that local authorities and the central government work hand in hand once both places have been restored to some sort of normality.

Of course the death toll means that normality for many people will never return because many people have been killed by Typhoon Talas.  This fact means that it is essential for major resources to be put into areas which have been badly hit and this will further put strains on the central government after the devastating March 11 earthquake and tsunami.

Also, the Fukushima crisis is still not over and with so many internal issues it is abundantly clear that the new leader of Japan faces major problems. The military of Japan is turning into a search and rescue unit because of the ravages of nature.

http://moderntokyotimes.com  please visit

James Jomo

Modern Tokyo Times

The death toll from Typhoon Talas continues to rise and latest reports state 54 dead and another 55 people are still unaccounted for.  This would indicate that more bodies will be found in the next few days and the devastation is also causing major problems for rescue workers.

Parts of Wakayama prefecture and Nara prefecture bore the brunt of Typhoon Talas but other areas were also hit.  The Kii Peninsula is a very beautiful part of Japan but many communities reside in remote areas and the infrastructure in parts of this region relies heavily on a limited number of major roads. 

Therefore, rescue teams are being hampered by both the devastation of Typhoon Talas and the terrain of this part of Japan. This fact is behind the reason why 480 people are still stranded after many days since the typhoon struck Japan and the same can be said about the fact that many people are still missing.

The Ground Self-Defense Force of approximately 2,000 personnel is impacting heavily on the effectiveness of the search and rescue mission. Also, approximately 500 police officers are involved and clearly their local knowledge is highly valued and both are working closely together.

This can be seen by the total of stranded people being reduced significantly from the day before.  Therefore, the number of people cut off after many days were reduced by around 2,000 people.  At the same time helicopters are dropping off essential supplies and a great deal of focus is being put on water supplies and electricity. 

In my last article about this ongoing crisis I added that “At the height of the storm the strength reached 108km/h and many homes were destroyed and some were swept away by the brute force which created floods and landslides.  Most of the dead resided in Wakayama prefecture and rescue teams are in the area and looking for people who are missing.”

“Nara was also badly hit and just like Wakayama you have many remote villages and this will add to the uncertainty about the final loss of life total.  Totsukawa in Nara was badly hit and mudslides happened in Tanabe in Wakayama.”

Nachikatsuura and Shingu both suffered badly in Wakayama prefecture and all areas hit will need major financing after the rescue and search operation is over.  Therefore, it is essential that local authorities and the central government work hand in hand once both places have been restored to some sort of normality.

Of course the death toll means that normality for many people will never return because many people have been killed by Typhoon Talas.  This fact means that it is essential for major resources to be put into areas which have been badly hit and this will further put strains on the central government after the devastating March 11 earthquake and tsunami.

Also, the Fukushima crisis is still not over and with so many internal issues it is abundantly clear that the new leader of Japan faces major problems. The military of Japan is turning into a search and rescue unit because of the ravages of nature.

http://moderntokyotimes.com