Eurozone Manufacturing Continues its Horrifying Freefall

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  1. Pankaj says:

    Japan could not afford to add to its gross pbiulc debt, already about 180 per cent of national output, the highest in the advanced world.Mr Yosano told the Financial Times in an interview: “We are already deep in debt, so to create effective demand for instant pleasure would not be wise.”The minister said the government was unlikely to find many worthy targets for stimulative funding.Constructing more pbiulc buildings – a favoured economy-boosting method in the past – would be “stupid” since maintenance costs would be a long-term burden, he said.Faster expansion of the national Shinkansen high-speed rail network looked like a decent option, the economy minister said.But policymakers in the ruling LDP party are not keen.“We don’t have very good pbiulc works any more,” Mr Yosano said.Some may disagree. The government has been attacked for cutting incentives for private spending in technologies such as solar power that would help protect the environment and reduce greenhouse gas emissions.Direct government investment could, for example, play a vital role in building the recharging infrastructure needed to make electric vehicles more commercially viable. Mr Yosano did urge more spending on unemployment benefit, saying the government could mitigate the social effects of recession by, for example, doubling to a year the period that benefits could be paid.Conditions were unlikely to become as bad as 1929. “These difficulties are not impossible,” he said.Teizo Taya, special counsellor to the Daiwa Research Institute, said Japan had learnt that deficit spending was dangerous, and western economies would find that running big deficits could lead to uncontrollable inflation.“We are not that stupid. We are not that desperate in Japan,” he said. But then:December 13, 2008Japanese Leader Offers a Vast Stimulus PackageBy MARTIN FACKLERTOKYO — Japan’s prime minister announced an emergency stimulus package on Friday, hoping to bolster the world’s second-largest economy by spending billions to create jobs, increase business loans and help laid-off workers.In a nationally televised speech, the prime minister, Taro Aso, announced the sweeping package that he valued at 23 trillion yen (about $250 billion). It was unclear how much of that figure was new spending and how much was included in earlier stimulus packages, like the $50 billion proposal announced in October.“This is said to be a global recession, a great global recession, that comes once in 100 years,” Mr. Aso said in the broadcast. “Japan is not outside the path of this big tsunami, nor can it escape.” And now: Asian markets higher on Japan stimulus plans9 Apr 2009, 1654 hrs IST, AGENCIESHONG KONG: Asian markets closed higher on Thursday, snapping two days of losses as investors cheered Japan’s record stimulus spending package andsome rare positive news on the economy.The markets took their lead from Wall Street’s 0.61 percent rise on Wednesday after two days of declines as investors appeared to hedge against a tough corporate earnings reporting season.Japanese shares soared 3.74 percent to a three-month high after the ruling party approved a stimulus spending plan that amounts to more than 15.4 trillion yen (154 billion dollars), or about three percent of gross domestic product.A surprise rise in Japanese machinery orders triggered hopes that the economy may be close to a bottom. Risk appetite was revived across the region as Hong Kong ended up 2.95 percent, Sydney rose 1.44 percent and Seoul surged 4.3 percent.Jakarta was closed for elections while Manila was closed for a pbiulc holiday.TOKYO: Up 3.74 percent. The benchmark Nikkei-225 index climbed 321.05 points to end at 8,916.06.Investors were cheered by the government’s record stimulus package and a rise in Japanese machinery orders.The orders, seen as a forward-looking indicator of corporate capital spending, climbed 1.4 percent in February, snapping a four-month losing streak, the government said. Economists had expected a slump of about eight percent. Steinbruck is great, but Yosano is hard to beat. By the way, the question should apply to currently serving elected officials.


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