The fact that my predictions made in a month and a half ago about politics and economics all came true, and which proved that my analysis was right. Unfortunately, this also means it is not good for Japan. Today I would like to start from international politics and try to drill down to our company’s policies.
At beginning of this year, the president Obama found his way through “fiscal cliff” juridically but the financial situation is still in trouble. The U.S., due to the reduction of military cost, no longer stands as the world’s police, and Japanese citizens were victimized in a previous terrorism in Algeria. Algeria was already out of control since the country was colonized by France.
In England, one third of population is against to be a part of EU. The Prime Minister Cameron has announced that they are having a national vote for withdrawal from EU. This is a crisis of EU. Now that yen is rather weak, export industries are in a pose, but our exports to Europe will not do well.
On the other hand, a new Chinese government led by Xi Jinping with hegemonism has been established. Japan’s Air Self-Defense Force scrambled frequently around Senkaku islands which is in very abnormal situation, and the increase of invasion to Japanese territorial waters both on the sea and under the sea could be confirmed. Therefore, U.S. considered the possibility of exchange of fire in future and deterred both countries. This is a story in recent days.
The fact that threat of China is becoming a real issue is, in a sense, because there are internal contradictions in China which makes to do so. You may notice that U.S. Marine Forces deploys Ospreys over Okinawa to be used for rescuing American citizens in China in case of country’s collapse, not 138,000 Japanese citizens in China.
The other day, North Korea has launched missiles. The wreck was collected by South Korean army and has confirmed that most of the components were in fact made in China. Then, North Korea has announced yesterday that they are ready for the nuclear testing. Back in the 1960s, China continually tested nuclear weapon in the desert area, contaminating Japan by fallout riding on westerlies, but left-wing media in Japan had hardly been reporting this fact.
As for the nuclear testing of a neighboring country across Tsushima Straits, no one says anything, but it is more dangerous than an accident in nuclear power plants. The collapse of North Korea would cause problems for China. Therefore, even if U.N decided to put a sanction upon North Korea, it will not work because China will support from behind anyway.
South Korea, who confronts North at 38th parallel, knows that they would turn “red” if Seoul is burned down by the war. If the relocation of U.S. military base to Henoko is cancelled, South Korea would take it to their country. However, if the U.S. army would be withdrawing from the area due to financial difficulties, Japan must replace it by herself.
This month, Abe administration stated the necessity of countermeasures against terrorism targeting the nuclear power plants in Japan, which also includes “warfare”. As I wrote in a public comment of JAPAN in last autumn; it is necessary to protect against the use of force properly, and then this policy would be economic policy as well. Without doing anything, we would be defeated by China and North Korea’s threat of nuclear power, therefore we must put away our allergy to nuclear power.
Finally the former chairman and current president of Tokyo Electric Power Co., Inc. have been sued for criminal charges from citizens. Just after the earthquake in 2011, I sent an e-mail to the TEPCO requesting them to respect the Act on Compensation for Nuclear Damages. Then yielding to Democratic administration, the company has been nationalized and a trade balance got into the red. There is not any benefit for Japanese industries. We need to restart the nuclear power plant soon.
The Bank of Japan of incompetence will finally set the 2% growth as an inflation target. I personally think that state of deflation would go on. Contrary other financial policies are mainly based on monetary easing. Assuming no sudden raise of interest rates, our company would increase total bank borrowings. Corporate debenture which has upcoming redemption would shift to long-term debt loan with a lower interest.
In terms of capital policy, as I stated before, I will increase our capital to 125 million yen then enhance the external trust. Increased capital would afford more employment, then there are still restructuring going on in the market and mid-career recruitments are welcomed. Yes, we will power up our company.
Twenty second terms has already been in a half. Today, we are having a welcome party for new employees. Then a workshop for prospective employees is launched today. Moreover from the next month, an early-time joint workshop for freshmen who have a mastership of “Applied Information Technology Engineer Examination” will also start.
Welcoming new employees in a latter half of this term, the office will be more lively. I would like to run through with all the employees, and hopefully meet the budget attainment!