Barak Obama will be the 44th president of the U.S.A. Why now? I think it's partly because of the stupidity and incompetence of the the 43rd president--worst f**king president in history. But it's also because Obama is really smart.
Now the question for this forum is, "What does it mean for Japan?" And the answer is, I think, Japan's politicians will have to grow up. Obama is much more mature than Bush despite his younger age. Japan will have to learn how to defend its positions rather than just following American policy. This will be good for Japan, IMO.
.I think it's partly because of the stupidity and incompetence of the the 43rd president--worst f**king president in history. But it's also because Obama is really smart
In the typical general election, it may boil down to pick the lesser evil between the two presidential nominees. GWB won by the relatively slim margin for both 2000 and 2004 against his Democratic opponents. One of the reasons GWB nailed his second term in office is John Kerry's campaign was too laid back while being attached ferociously by GWB's GOP (ie. Republican Party). Also, American economy in 2004 was in good shape, which helped GWB's re-election bid..
I think American is getting worse. who chose Bush?
The general public might be foolish.
it is a fault of democracy
Senator Danile Inoye said:There exists a shadowy Government with its own Air Force, its own Navy, its own fundraising mechanism, and the ability to pursue its own ideas of the national interest, free from all checks and balances, and free from the law itself.
David Rockefeller said:We are on the verge of a global transformation. All we need is the right major crisis and nations will accept the New World Order.
US rescues ailing Citigroup bank
The US government has announced a rescue plan for the Citigroup banking giant after its shares plunged by more than 60% last week.
The US treasury department is to invest $20bn (£13.4bn) in return for preferred shares in Citigroup.
The treasury and the Federal Deposit Insurance Corp will also guarantee up to $306bn (£205bn) of risky loans and securities on Citigroup's books.
The plan follows a $25bn injection of public funds in the bank last month.
Citibank has an asset valued over USD 2 trillion. So, it is not like the Zombie companies Japan nurtured during the 90s.I remember the word "Too Big To Fail". When Japanese banks and corporations had suffered from so-called bad loans some years ago, they told us "Japanese government should not help Zombie companies but let them fall", as they wanted to purchase them at cheap costs.
But when US government face its own Zombie companies, it becomes very kind ...
Look, the markets are betting on the company's stock. All monies are based on the trust. Japanese Yen is not pegged to any solid asset; neither is the US Dollar or any other currencies. Based on the current market, Citi's assets are estimated at USD 2 trillion.But the problem is .... the "asset value", isn't it?
Do you believe it's still worth of USD2 trillion ???
Look, the markets are betting on the company's stock. All monies are based on the trust. Japanese Yen is not pegged to any solid asset; neither is the US Dollar or any other currencies. Based on the current market, Citi's assets are estimated at USD 2 trillion.
The Detroit's Big Three's top executives are a bunch of inept and incompetent buffoons (maybe except for Alan Mulally of Ford, as he had prescience to line up the credit before the credit crunch gripped the market). But, I admit if GM is going to stay in the business, I would be buying the Corvette when I get back to USA in the near future (side note: I only bought either GM or Ford cars in the States with my own money; I found a typical Japanese cars in the states are a little under-powered and appliance-like.)Maybe .... those Big 3 automakers are not Zombie yet as those CEOs are rich men, using "Private Jets".
Financial Bailout Balloons to the Trillions
The government's financial bailout will be the most expensive single expenditure in American history, potentially costing around $7.5 trillion -- or half the value of all the goods and services produced in the United States last year.
Financial Bailout Balloons to the Trillions
That figure includes the amount "backed" by the US government or the Federal Reserve. If the economy improves (as it will eventually at some point in the future) and the credit markets become unclogged, the actual money US gov needs to spend would be much less than that.
Japan's economy is mostly based on the export business, which is greatly affected by the weak global demand for its products.
This is not correct in terms of macro economics.Japan's economy is mostly based on the export business, which is greatly affected by the weak global demand for its products.
Trade goes both ways, import and export. The international trade is an essential part of the Japanese economy. Close to 70% of its economy is in the service sectors. In general, Japan's service products are not really competitive nor well-accepted by the overseas markets as far as the service industries are concerned (also most of the Japanese service sectors is the low paying jobs). The crown jewels of the Japanese industries are affected by how well their export markets perform.This is not correct in terms of macro economics.
It is often said that Japan relies on EXPORT for their economy/GDP, but in fact, Japan is one of the least countries being dependent on Trade.
Trade goes both ways, import and export. The international trade is an essential part of the Japanese economy. Close to 70% of its economy is in the service sectors. In general, Japan's service products are not really competitive nor well-accepted by the overseas markets as far as the service industries are concerned (also most of the Japanese service sectors is the low paying jobs). The crown jewels of the Japanese industries are affected by how well their export markets perform.
The Japanese lessons indicate that Government spending is only hope for US economic recovery in the midst of balance sheet recession as Almost all Americans and US corporations tighten spending and repay their debts to the banks.History has showed that government spending is the tool for fighting the crisis, Krugman said, pointing to analysis of the 1930s Depression and a more recent deflation scenario in Japan.
"The experience in Japan from the 1990s was that indeed government spending, while it may not produce a permanent cure, can greatly alleviate the pressures on the economy."
Nobel winner Krugman fears damage to economy
Your argument is similar to: a heart is only about 3% of human weight; so it is not that important part.ﾂ"trade-to-GDP ratioﾂ"ﾂ is the sum of exports and imports divided by the gross domestic product.ﾂ So, both ways are included.
Meanwhile, my BIG question is .... if "In general, Japan's service products are not really competitive", why don't we see many success stories of foreign competitive service firms in Japan ???
I assume that your "competitive" may mean "abandon customer service, being essential here" ???
Again, you are just looking at the quantitative data. It's important to consider the qualitative data.OECD fact book says ..... In 2006, the trade-to-GDP ratio for OECD countries was 26%, while the rate for the EU15 was 38%. For the reasons noted above, there were large differences in these ratios across countries. The ratios exceeded 50% for small countries – Austria, Belgium, the Czech Republic, Denmark, Hungary, Ireland, Luxembourg, the Netherlands and the Slovak Republic – but were under
20% for the two largest OECD countries – Japan and the United States.
USA - 14.1% (Lowest)
Japan - 15.5% (Second Lowest)
EU 15 - 38.3%
OECD total - 26.3%
http://fiordiliji.sourceoecd.org/pdf/factbook2008/302008011e-03-01-01.pdf
I wonder why everybody, including Japanese media, continues to tell "Japanese economy heavily relies on Trade". IF so, All countries, except USA, are Ultra-Dependent on Trade.
US Treasury Bonds will find the buyers easily as it is still considered the safest financial instrument. US just sold $30 billion worth of bonds to eager buyers even though the interest is "zero." Mutual Funds, money market funds, and other institutional buyers purchase the treasury bonds (I heard only about 25% of the bonds are purchased by the foreign entities). In this shaky economy worldwide, many buyers may keep parking their bucks in the treasury bonds for the time being.However, US government spending means more budget deficit & more debts for US government. Some 10 years ago, J-bonds were purchased by the Japanese and digested within Japan. But I wonder if Americans are willing to purchase US T-bonds or not.