Non-UQ – Debt
The Japanese economy is shrinking and is on the brink of collapse.
Moran 4/11 (Andrew, journalist for the Digital Journal, [http://www.digitaljournal.com/article/290419] AD: 6/21/10)JM
Tokyo - Financial experts are cautioning Japanese officials that their economy may go bankrupt as early as next year because of their high public debt figure.
As global financial markets watch Greece very closely, economic analysts are warning that Japan’s economy may go bankrupt because of its astronomical public debt figure, according to AFP.
Dai-ichi Life Research Institute sounded the alarm this week when they said a Japanese bankruptcy could occur as early as 2011 when the public debt is expected to hit 20 per cent of the gross domestic product.
It is estimated, reports Press TV, that the public debt of Japan will surge to 950 trillion Yen ($10.2 trillion) next year and experts are cautioning the government that the only way they can avoid bankruptcy is if they issue more government bonds.
“Japan’s revenue is roughly 37 trillion yen and debt is 44 trillion yen in fiscal 2010. Without issuing more government bonds, Japan would go bankrupt by 2011,” said Hideo Kumano, chief economist at Dai-ichi Life Research Institute, reports the Manila Times.
The Japanese economy shrank by 5.2 per cent in 2009 due to debt, deflation and a decline in domestic demand. Digital Journal reported in December that Japan released its record 92.9 trillion Yen ($1 trillion) budget as they increased spending for child support and attempted to slash spending on public projects.
Japanese econ crippled by deflation- no immediate recovery possible
The Daily Yomiuri 6/3[June 3, 2010Page 2, Lexis] KLS
The Japanese economy has staggered through the storms of the financial crisis and the global recession, but it is now enveloped by the cold fog of deflation. Making matters worse, the nation faces a downsizing of its economic activity as the aging population drops due to the falling birthrate. This is a fiendish problem. The Japanese economy is standing at a crossroad--will it find a sustained growth path or crumble under the deflationary pressure and spiral down into oblivion? The government and the Bank of Japan must take every possible policy measure at their disposal to save the economy by overcoming deflation. The government admitted in March 2001 that the economy was in deflation. Since then, the government has not been able to declare that the nation has broken free from the shackles of deflation. In fact, it had to restate in November that the economy was still in a deflationary phase. In reality, the economy has been wallowing in chronic deflation for more than a decade since the times of financial recession sparked by the collapse of a number of banks.
Non-UQ- Jobs
Japanese econ plunging into deeper recession- price wars cripple profit
The Daily Yomiuri 6/3[June 3, 2010Page 2, Lexis] KLS
In recent times, price wars have been erupting in many sectors. The battles have quickly spread from jeans priced at less than 1,000 yen at supermarkets and mass retailers, to foods including beverages, takeout lunches and gyudon beef-over-rice bowls at chain stores. Consumers like to buy things as cheaply as possible, while manufacturers resort to cutting prices to promote sales. Their actions, which seem entirely reasonable to each, could end up tightening deflation's stranglehold. As price wars intensify, manufacturers become unprofitable and make less money. This often forces them to restructure their organizations and cut employees' salaries. The result is a vicious spiral that dampens already fragile consumer spending. According to government statistics, consumer prices have been steadily declining as workers' monthly salaries have been decreasing for the past 18 months on a year-on-year basis.
Non-UQ- Jobs
Japanese economy destroyed- job unavailability, foreign demand down
The Daily Yomiuri 6/3[June 3, 2010Page 2, Lexis] KLS
Japanese industries, especially export-led companies, have accelerated drastic production and job cuts since the global recession that started in 2008 caused foreign demand to plunge. Although exports, mainly to Asian countries, are gradually recovering, they remain at only 70 percent of peak volume before the collapse of Lehman Brothers Holdings, Inc. Jobs hard to come by Companies that are increasing facilities and employees to raise output are still thin on the ground, and recoveries of capital spending and employment have been slow in coming. The percentage of students fresh out of high school and university who have found jobs has seen a record drop, causing concern that the nation could be on the brink of a return to a so-called employment ice age. The yen's excessive appreciation will knock the wind out of the sails of the export industry and aggravate deflation by lowering prices of imported goods. The government should not hesitate to intervene in the currency market to prevent this.
Link Turn- General
US presence hampers local economies – Okinawa proves
Meyer 3 (Carlton, Sergeant in US military, Served one year with the US Marine Corps in Asia and participated in the massive TEAM SPIRIT 1990 military exercise in Korea & writer for military magazines, G2Mil.com, http://www.g2mil.com/Japan-bases.htm) JPG
Okinawa is a small island south of mainland Japan where U.S. Marines established bases as World War II ended. They protected the island from possible Chinese invasion and it remained under the direct control of the U.S. military until 1972. Okinawans have their own culture and wanted independence and the closure of most American bases, but the island was given back to Japan with an understanding that American bases would remain. Over 27,000 U.S. military personnel and their 22,000 family members are stationed on Okinawa. The U.S. Air Force maintains the large Kadena airbase on the island while the Army and Navy maintain several small bases. The Marines have a dozen camps and a small airbase at Futenma where loud helicopters anger nearby residents.Discontent among the people of Okinawa regarding the foreign military presence has been rising for years. Their chief complaint is that Okinawa hosts over half of U.S. forces in Japan, which hampers economic development. After a series of violent criminal acts by U.S. servicemen, the U.S. military agreed in 1996 to reduce the impact of their presence. A few minor military facilities were consolidated while training and operational procedures were changed to reduce noise. The most significant concession was a promise to close the Marine Corps airbase at Futenma by 2003.The Japanese government in Tokyo agreed to build a new airbase for the Marines elsewhere in Japan, yet the Marines insisted the airbase must be on Okinawa. The idea building a multi-billion dollar airbase in northern Okinawa was studied for years. While that area is less populated, the noise from an airbase would destroy the peace of tropical beaches enjoyed by tourists. That idea was dropped, so the Okinawans were promised that 8000 Marines would move to Guam. The Japanese government agreed to build new facilities on Guam, until presented with an outrageous price tag. Japanese political opinion hardened and some leaders now assert that Japan had the right close any U.S. military facility without compensation.
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