Monthly Archives: July 2013

Japan regains its pride back!

It has been a half year since Abe‘s second cabinet was established.The term, so called “Abenomics”, has been widely popular and the economy seems to have been recovering. The last administration had its many members from ex-Socialist Party and had been moving toward sort of national socialism. Since they were also not good at controlling economy, their economic policy had no effect at all. Though it was our foolish choice which led to a change of administration to the Liberal Democratic, surely the agitation by the media had a lot to do with this.

It can be said that is a defect of democracy, but people are not always foolish. After a few years of swinging back, we saw a change of administration again in the last lower house election. The biggest policy of new administration was human affairs of the Bank of Japan. It is separated from the administration in principle, but actually it functions as a central bank working with the administration. Shirakawa, the former governor of the Bank of Japan, conducted small amounts of quantitative easing but it had no impact on the market, and also it was so shabby idea that economy did not go up.

With transition to a new administration, Kuroda, the new leader of the bank, had proclaimed his new policy of massive quantitative easing, which caused instant reaction with a weak yen and high stock. Kuroda has a career of the governor of the Japan Bank for International Cooperation, having had many favorable connections to the people in finance with approving his policy. In that sense, Abe administration had a best choice with the head of Bank of Japan. However, it is likely that the media would “wait and see” for a half year, and then condemnation by media starts from next week after the Upper House election on July 21.

We have to wait for a domestic economic recovery for a while. Abe has set his “Three Arrows” policy in his top priorities, but whatever aggressive economic policy he takes, the economy will be slow down if the consumption tax is raised. This is obvious from the last two results of raising consumption tax, which both provoked a recession. Since the last administration, it has been insisting that the consumption tax is assigned for social security, but social security only works when there are people who could “support”. Those who can “support” are formed in good economy. Tax reduction is an iron rule when recovering from recession.

Although the Liberal Democratic Party will sweep in the Upper House election, this does not solve the problems regarding national-defense policy nor economic policy. It is necessary to adjust future policies. Economy does not mean anything if people’s life and property are not secured, for instance TPP stands for Trans-Pacific Strategic Economic Partnership Agreement, and then economic policies are deeply connected with international politics and national defense of each country.

It is meaningless only to reinforce the military when confronting China’s frequent violations to Senkaku Islands. Economic counter policy is effective, for Japan’s weaker– Yen and higher stocks means higher-Yuan and lower stocks for China relatively. China’s growth rate of GDP announced yesterday (because economic statistics are inflated arbitrary) has gone down. Consequently, China is using the anti-Japan movement for the vent of preventing the collapse of frontier policy and wealth gap.

Similarly, North Korea is promoting their nuclear development which Chinese Communist Party disapproves and they use it to draw financial support from China. This is because nuclear weapons are so effective to cancel out the difference of usual military force. On the other hand, if China succeeds in blocking the sea lane, so called the First island chain policy, there will not be any fossil fuel coming into Japan, which could cause tremendous damage to Japanese economy, domestic industry, and employment accordingly. To prevent it, we have no choice but to rely on nuclear deterrent force at this moment. Therefore, we have to restart nuclear power generation as soon as possible.

Japan’s nuclear power generation is, of course, for the peaceful use only, nevertheless any leader of any country understands that our nuclear energy policy itself is nuclear deterrent force. Considering the fact that a nuclear power station both creates and consumes the material needed to make nuclear weapons, it is a reasonable statement. We call it “Energy security policy” in Japan. Politicians don’t want citizens to know this fact for Japan as being the only victim of nuclear bombing, and also they don’t want this issue lead to any anti– government movement. In terms of citizen’s “right to know”, this might be violation of the constitution.

Constitution is written law of national governance. The Constitution of Japan is codified but its preface is a full of lies. The below is well-known sentence in the preface “and we have determined to preserve our security and existence, trusting in the justice and faith of the peace-loving peoples of the world.” However, there has not been any “justice and faith of the peace-loving peoples” existed ever since the war ended which invalids the preface of constitution itself. Perhaps it could not be helped because the ongoing constitution was established under the occupation of United States.

Other countries often revised their constitutions, but never in Japan. The Liberal Democratic Party is faltering and going through with elections with the issue being hidden. Even today, the discussion like “the Article 9 of the constitution brought a peace to the country” is claimed by Social Democratic: the protector of the article 9. It is clear that the so called “peace constitution” did not contribute to sustain our peace age in Japan. The truth is that reinforcement of Japan’s Self-Defense Forces after the Korean War has been in charge of a national defense and kept the peace till now.

Although the ideal is respectable, it is necessary to have courage to face the reality. Every country has every its justice, therefore it always makes international politics to be complex and difficult. Nevertheless Japan has to have a justice. What is hindering us from having that is our so called “masochistic view of history” which was basically set by other nation’s schemes and ideologies. I believe, we the Japanese need to have a courage to look straight into true history as well as the reality, and that is only way to regain our pride back.

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