In the Japanese watch, we are now forced once more to move away from politics and look at the economy. Not that Hatoyama is having a fine time, none of his political problems have eased - kind of status quo.
Toyota, Honda, Japanese Airlines, Sony et al are some of the Japanese companies losing revenue. South Korean auto and electronic parts manufacturer are gaining ground in Asia. USA auto makers are making hay when the sun shine. This is just pushing the already beleagured Japan further into corner. Any animal that is pushed into a corner is bound to act furiously.
Will this make Japan look more closely at the region or would it send back into arms of Unkil?
Job Offers-to-seekers ratio average record low 0.47 in '09
Japan unemployment is hovering around 5%
And in other news, Japan continues to fight
deflation. The era started in 1999. Industrial output has not risen as expected (but it did rise). So for folks wondering why is Japan worried about deflation. Well I googled and found the effects of deflation. Simply put, without using lots of economics jargon, consumers could be delaying their purchases and this in turn reduces the overall economic activity. Why? Because the money is buying more goods - i.e. prices are getting lower. It can just get 'badder' as goods are not produced, investment falls, demand falls..... by now you should have a spiral bubble in your head. If not, you can read about
Deflationary spiral and its effects. So now you see why Japan should be worried. So what can be done? Well, apart from other things, Yen might have to appreciate; but some exports oriented Japanese companies might not like it that much. Tough luck.
So with aging population, and citizens not leaning towards buying as much goods.....Japan is forced to look elsewhere. China, eh? Does it answer why Japan is so friendly-friendly with China? If the West is turning its head towards Asia as the next biggest consumer market, why shouldn't Japan. It is sitting right there, na?