Japan entering into Utopia ?

Japan's Current Account Surplus Jumps 26% In 2007
http://www.foxbusiness.com/markets/...t-account-surplus-jumps-26-2007_477160_3.html

I am very surprised to know that Japan's current account surplus increased in 2007, marked the highest reading for the second straight year since comparable data became available in 1985.

Trade account is always surplus and thus not interested. But The income account, net income from Japanese investment overseas, reached yet another record-high surplus in 2007, up 18.4 percent from the previous year and the fifth straight year of growth.

An increase in direct investment returns and stock dividends from Japanese investment abroad pushed the income account surplus up to a record for the fourth straight year.

The income account surplus exceeded that of merchandize trade for the third straight year, indicating Japan's economy depends more on returns from overseas investment as a major source of income than on earnings from exporting goods.....

Japan is earning income earned from investment overseas, and in other words, people in overseas are working for Japan, and Japanese don't need to work so much.

I have never heard about such a country (earning investment-income rather than trade) in human being history. Does this mean that Japan is being a Utopia? I am not a economist. So any thoughts are welcomed.

Fox Business news is not ..hmmmm what i would call a great source of info on the business world. Not saying your facts are wrong just I would need to see other sources before commenting.

But in any case many countries benefit from "investing" look at China for example.

FYI. http://www.mof.go.jp/bpoffice/bpdata/es1bop.htm

Used to be....trade surplus was a major source of earnings, but today income surplus bacomes a major source of earnings of Japan.

Japanese companies and consumers invest overseas, and now gaining earnings from those investments. Such net income surplus exceeds trade surplus.

I think it is a life of retirement if we see Japan as a human being. Don't you think so?

Yes, most of developed countries earns income from overseas investment, but that of Japan is now siginificant.

Japan's income balance 2007: +16,273 Billion JPY (147.9 Billion USD)
US income balance 2006 (latest): +36.6 Billion USD
http://www.bea.gov/international/xls/table1.xls

Japan earns trade surplus, while USA is usually trade deficits.
Plus Japan earns from foreign investment 4-times more than USA.

Japan cannot consume money within Japan, and thus interest rate is always near ZERO, and Japan invest money in foreign countries. And again income from investment overseas piles up.

Japan is really a recession country?

Japan is entering into Utopia?, but UK is entering into hell????
Balance of Payments- 2007 Q3: UK deficit widens


As far as I know, UK has long enjoyed property price hikes. So theoretically British assets increased very much. British Stg Pound was one of the strongest currency among the world. When I visisted London, I was very surprised to see all was very expensive.

So all is fine in UK??? No, The reality does not look like.

1. UK is suffering from chronicle deficit of current account.

There was a current account deficit of £20.0 billion in the third quarter, equivalent to -5.7 per cent of Gross Domestic Product (GDP), compared with £13.7 billion, equivalent to -4.0 per cent of GDP, in the previous quarter. The higher deficit was due to an increase in the deficits on trade in goods and on investment income.
Home - Office for National Statistics

Click to expand...

2. In order to keep balance of money flow, UK needs to keep higher base rate.
Today UK base rate - 5.25%, vs Japan (0.5%). Higher base rate helps UK Stg Pound stronger, and thus Foreign investors buy UK bonds and property. Usually higher base rate hinders property price increase. Thus UK needs to create bubble economy - let people borrow more money and invest property by extending more credit to the people who are not worth to provide.

After US subprime crisis of last year, this magic is unlikely to work out anymore.

3. When economy gets slower, most of countries including USA usually decrease base rate to stimulate domestic economy and lower exchange rate to boost export. But in the case of UK, nothing to export.....but living on financial business principally. So UK central bank will keep their base rate as high as possible in order to attract foreign investors. Otherwise, UK will face economic crisis.

4. Financial business sounds nice because of its higher profitability as far as bubble economy continues. But in other words, financial business is equivalent of gamble. I think "London" financial center looks like Las Vegas. Gambling on financial business is likely to end as credit crunch prevails worldwide....now.

I am not economist, but the above senario of mine is quite resonable.....
People in UK will continue to live in higher interest rate, while economy becomes slow and property price decrease.

I think such situation will be Hell. Am I wrong?