U. s-japan Alliance is strong, but fragile



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Japan Economy Impact

Japanese rearm collapses their economy


Gunnar 14 -- Ulson Gunnar, a New York-based geopolitical analyst and writer especially for the online magazine New Eastern Outlook. (Ulson, 7/25/14, New Eastern Outlook, Located at http://journal-neo.org/2014/07/25/why-japan-s-rearmament-might-not-matter/, “Why Japan’s Rearmament Might Not Matter http://journal-neo.org/2014/07/25/why-japan-s-rearmament-might-not-matter/”, Accessed 6/24/16, MW)

Acrimony and elation erupted on opposing sides of a growing geopolitical rift in the Pacific following Japan’s decision to sidestep its constitution and seek a more aggressive global posture. AP reported that, “Japan’s Cabinet on Tuesday approved a reinterpretation of the country’s pacifist postwar constitution that will allow the military to help defend allies and others “in a close relationship” with Japan under what is known as “collective self-defense.”” Those that remember when last Japan exerted military force beyond its borders are protesting the recent step which they see as yet another attempt to remilitarize the island nation and push it toward participating in yet another disastrous armed confrontation. This includes not only nations that were victims of Japanese imperialism during World War II, but even the Japanese people themselves who paid tremendously in blood and treasure during their ill-conceived attempt at achieving hegemony over the Pacific. Whatever lessons protesters may have learned from history appear lost on Japanese Prime Minister Shinzo Abe, whose English speech in Australia sounded suspiciously like various speeches penned for American politicians in regard to the US “Pivot Toward Asia.” But for all the posturing the announcement involved, does Japan’s attempt to rattle its saber actually matter? Why It Might Not Matter Japan is a nation in decline. Its population is both aging and shrinking while its economy is mired in stagnation. Shifting toward greater militarization or cultivating adversarial relations with neighbors like China may be an attempt to rally its population around the flag, but that such a measure even seems necessary spells trouble for Japan. And Japan’s military contributions to whichever nations is applies “collective self-defense” to are moot, considering many of these allies are likewise in permanent decline, including the United States itself. It is unlikely Japan’s contributions will allow the US to break even in its Pacific calculus. America’s attempt to “pivot toward Asia” has experienced many setbacks and delays including the ousting of allied regimes in the region and the ever expanding sphere of Chinese influence chaffing against waning US hegemony. In fact, Japan’s remilitarization may only distract it further from devising sustainable socioeconomic reforms necessary for the nation’s recovery, let alone what it needs to thrive and expand. The other possible motive behind Japan’s saber rattling may be yet another collective effort by the West and its regional allies to force China’s hand toward an overreaching Soviet-style arms race and subsequent missteps before the hoped collapse of Beijing’s current political order. Should paranoia and bad intelligence get the better of Beijing, China may find itself overreacting to provocations, both political and tactical, along its borders and spheres of influence. It should be noted that similar saber rattling from Japan has taken place for decades. Similar rhetoric could be heard in 1989, when Japan and the US were seeking their way out of economic recessions. More recently, Japan has made militaristic announcements similar to its most recent declarations, all accompanied by the same condemnation and celebrations along predictable political fault lines. It may be that Japan’s socioeconomic condition is once again dire enough to warrant yet another round of distractions.

Japanese economic collapse drags down the global economy and sparks Asian conflict


Auslin 9 (Michael, Resident Scholar – American Enterprise Institute, “Japan's Downturn Is Bad News for the World”, Wall Street Journal, 2-17, http://online.wsj.com/article/SB123483257056995903.html)

If Japan's economy collapses, supply chains across the globe will be affected and numerous economies will face severe disruptions, most notably China's. China is currently Japan's largest import provider, and the Japanese slowdown is creating tremendous pressure on Chinese factories. Just last week, the Chinese government announced that 20 million rural migrants had lost their jobs. Closer to home, Japan may also start running out of surplus cash, which it has used to purchase U.S. securities for years. For the first time in a generation, Tokyo is running trade deficits -- five months in a row so far. The political and social fallout from a Japanese depression also would be devastating. In the face of economic instability, other Asian nations may feel forced to turn to more centralized -- even authoritarian -- control to try to limit the damage. Free-trade agreements may be rolled back and political freedom curtailed. Social stability in emerging, middle-class societies will be severely tested, and newly democratized states may find it impossible to maintain power. Progress toward a more open, integrated Asia is at risk, with the potential for increased political tension in the world's most heavily armed region. This is the backdrop upon which the U.S. government is set to expand the national debt by a trillion dollars or more. Without massive debt purchases by Japan and China, the U.S. may not be able to finance the cost of the stimulus package, creating a trapdoor under the U.S. economy. So far, Japan's politicians have been unable to find a way out of this mess. While another $53 billion stimulus package works its way through parliament, fully one-third of Japan's prefectures have instituted emergency economic stabilization measures. But the big issues elude short-term solutions. Though Japan's leaders are currently cutting back on military expenditures and domestic services, they're unable to agree on budgets or reform plans. They have no strategic road map for reining in the yen, opening up to international competition, or taking an economic leadership role in Asia that will promote growth and strengthen democratic, market-oriented societies. Things don't have to turn out this way. If Japan's leaders can craft a monetary policy that ends Japan's deflationary spiral by carefully expanding the money supply, recommit to structural reform, and halt the yen's rise, they can jump-start economic growth. They should also ignore the powerful domestic agriculture lobby and embrace a robust free-trade agenda, which would help them as well as the rest of Asia. Mrs. Clinton's visit cannot be a simple photo opportunity. This trip needs to result in a clear U.S.-Japan approach to restoring confidence and rebuilding a robust and open international system. Without action, Japan and America may go over the cliff together, dragging Asia and the world down with them.

Economic decline causes extinction


Auslin 9 (Michael, Resident Scholar – American Enterprise Institute, and Desmond Lachman – Resident Fellow – American Enterprise Institute, “The Global Economy Unravels”, Forbes, 3-6, http://www.aei.org/article/100187)

What do these trends mean in the short and medium term? The Great Depression showed how social and global chaos followed hard on economic collapse. The mere fact that parliaments across the globe, from America to Japan, are unable to make responsible, economically sound recovery plans suggests that they do not know what to do and are simply hoping for the least disruption. Equally worrisome is the adoption of more statist economic programs around the globe, and the concurrent decline of trust in free-market systems. The threat of instability is a pressing concern. China, until last year the world's fastest growing economy, just reported that 20 million migrant laborers lost their jobs. Even in the flush times of recent years, China faced upward of 70,000 labor uprisings a year. A sustained downturn poses grave and possibly immediate threats to Chinese internal stability. The regime in Beijing may be faced with a choice of repressing its own people or diverting their energies outward, leading to conflict with China's neighbors. Russia, an oil state completely dependent on energy sales, has had to put down riots in its Far East as well as in downtown Moscow. Vladimir Putin's rule has been predicated on squeezing civil liberties while providing economic largesse. If that devil's bargain falls apart, then wide-scale repression inside Russia, along with a continuing threatening posture toward Russia's neighbors, is likely. Even apparently stable societies face increasing risk and the threat of internal or possibly external conflict. As Japan's exports have plummeted by nearly 50%, one-third of the country's prefectures have passed emergency economic stabilization plans. Hundreds of thousands of temporary employees hired during the first part of this decade are being laid off. Spain's unemployment rate is expected to climb to nearly 20% by the end of 2010; Spanish unions are already protesting the lack of jobs, and the specter of violence, as occurred in the 1980s, is haunting the country. Meanwhile, in Greece, workers have already taken to the streets. Europe as a whole will face dangerously increasing tensions between native citizens and immigrants, largely from poorer Muslim nations, who have increased the labor pool in the past several decades. Spain has absorbed five million immigrants since 1999, while nearly 9% of Germany's residents have foreign citizenship, including almost 2 million Turks. The xenophobic labor strikes in the U.K. do not bode well for the rest of Europe. A prolonged global downturn, let alone a collapse, would dramatically raise tensions inside these countries. Couple that with possible protectionist legislation in the United States, unresolved ethnic and territorial disputes in all regions of the globe and a loss of confidence that world leaders actually know what they are doing. The result may be a series of small explosions that coalesce into a big bang.


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