Sunday, July 04, 2010




(28 Miles North from the Tokyo Bay, 62 Miles East from Mt. Fuji; Great is the Rice Field Nearby in Japan)




There are some people that are really pursuing truth, humbly or arrogantly.

Some of them might think that they have found a critical clue in EEE-Reporter to a big solution to their challenge. They think that they might be able to even win a Nobel Prize.

All I can say to them is respect Mr. Toshihide Masukawa and Mr. Koichi Tanaka. Mr. Masukawa, a Japanese Nobel laureate, does not speak English since he was a young labor union activist. Mr. Tanaka, a Japanese Nobel laureate, works wearing a work outfit in a laboratory of a private company.

So, I present a theory on economics here, which is called the Saturation Theory in Economic Phases.

Economy of a nation, a region, or the world in a certain era can develop as much as in terms of quantity and quality till it gets saturated in a given environment.

One remarkable example is the very Japanese economy.

The 15-year long deflation of Japan is manifestation of the saturation of the Japanese economy which can be explained by my theory: the Saturation Theory in Economic Phases.

One basic equation is as follows:
D = f (G, P, A, L, X)

D: the degree of economic saturation
G: GDP or other economic scale
P: population
A: the plain area of the national land
L: a level of circulation of literature and other media
X: Other cultural, traditional, and religious factors

D = G*(P/A)*L*X

As this value D reached a certain level in Japan in the middle of 1990's, Japan's economy came to be saturated, resulting in the 15-year long deflation.

As a solution to this situation or a factor for this status, Japan invested in China so much and relocated so many factories into China through 1990's and 2000's.

(Of course, Japanese automakers and other manufactures also built so many plants in the U.S. and other countries in this period. Though stupid American economists laughed at Japan for its lost decade, if Toyota, Honda, and the likes had never built plants in the U.S. while surpassing GM in sales in the U.S. market, more workers should have been employed in Japan and more consumption must have been recorded in Japan, pushing up GDP more.)



P.S. Paraguay fairly conceded to Spain that advanced to the semifinal of the World Cup Soccer Matches for the first time in 64 years. And, it looks like that the God punished Argentina. They should not have behaved like loose and immoral British men and women living and working in a British company in Japan, since a Japanese cameraman was sent by them to Bangkok to be killed recently. Remember that BP is also a British business!!