(Lying on the beach under a rain, one can look sometimes blessed as if with $1 billion paper money...Do you have it?...Pay it for the rain on the beach where you should be lying to be blessed by God.; Around Tokyo actually yesterday.)True Key Factor
If you have patiently read and studied the EEE-Reporter blog so far, whether you are in Harvard or Beijing, you must now understand that it is major Japanese businesses that overlooked, welcomed, or exhaustively introduced deflation in Japan and the lost decade in Japan's 1990's. It is so since there are many Japanese who have become rich working through, or investing into, those major corporations.
No critical damages have been made on them, though those Japanese companies have been striving to cope with the Anglo Saxon-triggered globalization leveraging the IT technology.
Any arguments by economists are blind to this true key factor. It is not a matter of manipulation of prime interest or regulation of money supply. The real situation is more real, dynamic, live, and progressive as well as being influenced by technological innovation.
SECTION I: Top 1000 Makers in the World
Japan and the U.S. are still the two dominant manufacturing countries in the world.
Among top 1,000 makers in the world in terms of revenue, 200 makers belong to Japan and 300 makers belong to the U.S.
Among top 1,000 makers in the global industrial sector in terms of revenue, Japan and the U.S. have 500 companies listed in total.
A number of industrial manufacturers globally ranked between the 1st and the 1000th in terms of revenue for each major company is as follows.
The U.S. is still the country with the largest number of makers each of which has recorded big revenue to be ranked within the 1000th in the world.
Japan follows it, making the two countries the top leading group.
COUNTRY...Number of Top 1000 Makers
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USA:......305
JAPAN:......209
France:......47
Germany:......41
UK:......41
Korea:......40
Taiwan:......32
China:......29
Canada:......28
Switzerland:......19
Italy:......16
Sweden:......15
Finland:......15
Netherlands:......14
Brazil:......13
Mexico:......11
Russia:......7
Spain:......7
Belgium:......7
Denmark:......6
Hong Kong:......5
Norway:......5
Australia:......4
Singapore:......4
Greece:......4
Austria:......4
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(Click to enlarge)http://www.industryweek.com/research/iw1000/2008/iw1000rank.asp
What should be noted is that this is just one example on how Japanese makers have accepted or promoted deflation in the Japanese economy so as to maintain their sales and revenue.
They have invested much into China and established many affiliated companies in China, causing deflation in Japan but maintaining their positions in terms of revenue.
In other world, the lost decade in 1990's has not influenced Japanese big makers. Rather, for prosperity of those globally-operating Japanese makers, the lost decade and the deflation were virtually accepted by Japan, since it was an inevitable result from huge investment into China so as to win the international competition in the era of globalization.
As a result, while the GDP ratio is 1 to 2.8 between Japan and the U.S., the manufacturing power ratio has become 1 to 1.5, which is a kind of great success for Japanese businesses and workers.
In addition, if the Chinese currency yuan is up-valued, there could be a little influence in China in terms of the number of makers to be ranked within the 1000th in the world.
Of course, with so many powerful manufacturers in Japan and the U.S., to tell the truth, no Chinese makers are needed. However, greedy and severe competition in the global market has forced businesses to leverage cheap labor force in China.
Yet, this is all within a paradigm of the 20th century. We have to advance over the lost decade of Japan and a 10% level of unemployment in the U.S.
SECTION II: G8 vs. G20
They say that G8 is not useful anymore, since so many problems have been unsolved such as the American financial crisis in 2008 and the Greece crisis in 2010.
So, even American elites claim that G20 does everything necessary.
However, it is Former President Mr. George W. Bush that formed G20 as an excuse of silencing his expected apology to the world for the Wall Street crash.
Without G8, Japan will get less direct information from European major players and the U.S. It will have a significant influence on Japanese key players in economy and politics.
The world today functions through various networks established through decades-long efforts by Japan, West Europe, and North America. If the networks are taken away, the world will lose a shared sense among major players. G8 is implementation of a lesson learned from the past Great Depression.
If China cannot be a responsible member of G8+1, G20 including China is from the beginning just a kind of excuse.
Anyway, as Europe and America lose confidence, they just want to be psychologically relieved by sitting together with G20 members. Inevitably, Japan is leading and sustaining G8 to have it function.
(If a next crisis occurs, it cannot be China, India, Brazil, or Korea that fixes the international financial/currency crisis. It is still Japan that will really contribute to fixing the crisis. They are potentially problem factors, but Japan is on the savior side.)
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According to a keyword hit number check, the two leaders of Japan, Prime Minister Mr. Naoto Kan and the head of the largest opposition party Mr. Sadakazu Tanigaki, got the following numbers from search results with Yahoo (in Japanese):
"Kan Naoto": 1,580,000 (pages/sites)
"Tanigaki Sadakazu": 3,570,000
"Kan Naoto Minsyuto (the DPJ)": 545,000
"Tanigaki Sadakazu Jiminnto (the LDP)": 367,000
So, the LDP might be more advantageous in voting in fixed-seat electoral districts than in voting in the proportional-representation constituency.
"Tanigaki Sadakazu" seems to be more trusted than "Kan Naoto." But, "Minsyuto (the DPJ)" seems to be more trusted than "Jiminto (the LDP)."
Yet, most of critics predict that the ruling DPJ will get more seats than the LDP in the July 11 Upper-House election, though the DPJ and its allied parties are not expected to secure a majority in total including seats not for re-election.
Anyway, it is a turn for the DPJ to concede.
(http://www.asahi-net.or.jp/~sl9k-mtfj/MIDI_folder/la_mer.mid
Source: http://www.asahi-net.or.jp/~sl9k-mtfj/mid.html
La Mer is the sea, since the sea is il mare in Italian. We call it "umi" sounded as 'wu-me,' in case that you are neither Japanese nor French.)
Mat 6:28 And why take ye thought for raiment? Consider the lilies of the field, how they grow; they toil not, neither do they spin:
Mat 6:29 And yet I say unto you, That even Solomon in all his glory was not arrayed like one of these.
Mat 6:30 Wherefore, if God so clothe the grass of the field, which to day is, and to morrow is cast into the oven, shall he not much more clothe you, O ye of little faith?