Meiji Shrine...
Approach Street...with police and leftist demonstrators coming after...
But somewhere in S**t*m*...
(Even "The Capital" Karl Marx wrote is translated, form-changed, and sold as a manga comic book in a convenience store in Japan...)Effect of Regime Change in Economics
(Le changement de régime économique)
There are two types of the second person in Hindi like in German: ap (Sie) and tu/tum (du).
When they call God, they use not ap but tu.
(http://www.namasute-mumbai.com/kotowaza.html)
Modern Indians are not like ancient Buddhists like modern Chinese are not like ancient disciples of Confucius and the like.
But, Japanese are, hopefully.
SECTION I: State of Deflation in Japan
Among 181 countries in the world, Japan is the only nation whose price level in society as of 2008 is lower than the level of 2000.
Accordingly, Japan is the 181st in the following ranking chart.
(http://shavetail.blog99.fc2.com/blog-entry-48.html)
But why? China? Or a lack of currency in Japan?
A blogger who posted the above figure commented that the cause of Japan's deflation in these 20 years is an insufficient amount of money supply or an insufficient rate of circulation of money in society rather than the so called China factor.
However, if another world No.2 economy (China) suddenly emerged so close to the authentic No.2 economy (Japan) in the world, the latter must surely experience deflation.
Japan has needs A and original supply power B.
Price = A/B
With emergence of China, Japan's needs are covered by supply power C from China, too.
Price = A/(B + C)
Therefore, the more Chinese economy grows, the larger its supply to Japan increases.
But, America and Europe also import many Chinese goods. Why Japan only?
It is because so many Japanese companies, specifically, not only large enterprises but also 20,000 medium and small sized companies have transferred their capital and technologies to China. They all first tried to leverage cheap labor costs in China.
These companies and their subsidiaries in China are competing with one another, being forced to sell products in the Japanese market cheap, cheaper, and more cheaper.
These companies and their subsidiaries in China are also globally competing with one another, being forced to export products in the American, the European, and other markets.
This trend is of course further driven by the global competition, being spurred by American strategies and IT innovation.
So, most of Japanese companies have come to stop raising a salary level of their employees, since the average salary level of Chinese workers is still about 10% of Japan's.
(http://news.searchina.ne.jp/disp.cgi?y=2009&d=0930&f=national_0930_048.shtml)
This downward pressure from businesses in terms of the financial scale of the industry has led outwardly to an insufficient amount of money supply or an insufficient rate of circulation of money in society. In other word, Japanese companies have come to use less money relatively, so that the whole Japanese society has come to use less money relatively.
In this way, unlike America and Europe, the whole Japanese companies have come to pay less to Japanese workers, leading to less tax revenue to the government. This effect can be represented by K.
Price = (1/K)*A/(B + C)
What's more, Japan is already materially rich. Everything needed in a household, a city, a prefecture, or the nation needs is already provided. Motivation for purchase is not so strong in Japan at every level from an individual to the government. The size of the Japanese land also contributes to this phenomenon. This effect can be represented by N.
Price = (1/K)* (A - N)/(B + C)
K: Degree of linkage with and involvement in Chinese economy
A: Expected needs
N: Factors to reduce needs along with increase of wealth in a given country
B: Supply power in a country
C: Supply power in China effectively used for providing goods to a given country
K, N, and C are far greater in Japan than in America and Europe.
This is the main mechanism of deflation. One of consequences is outwardly an insufficient amount of money supply or an insufficient rate of circulation of money in the Japanese society.
If another world No.2 economy (China) suddenly emerged so close to the authentic No.2 economy (Japan) in the world, the latter must surely experience deflation, since 20,000 small and medium-sized enterprises in Japan would partially move its business into China.
And, one small or medium-sized enterprise has 10 or so close business partners. This effect propagates to 200,000 companies and a few million workers and customers, all toward deflation.
Anyway, it is commonsense that the linkage between the Japanese industry and the Chinese industry is 10 times stronger and closer than between the American/European industry and China's.
And, it is the key to understanding deflation in Japan.
Price = (1/K)* (A - N)/(B + C)
K: Degree of linkage with and involvement in Chinese economy
A: Expected needs
N: Factors to reduce needs along with increase of wealth in a given country
B: Supply power in a country
C: Supply power in China effectively used for providing goods to a given country
K, N, and C are far greater in Japan than in America and Europe.
If K = 1, A = 100, N = 0, B = 1, and C = 0,
Price = (1/1)*(100 - 0)/(1 + 0) = 100
If K = 10, A = 100, N = 10, B = 1, and C = 0.2,
Price = (1/1.2)*(100 -10)/(1 + 0.2) = 62.5
Without the economic rise of China, Japan's price level and salary level must be 1.6 times higher, according to the above assumption. So, Japan's GDP must be 60% larger, though it will severely sacrifice Japanese land and natural environment.
SECTION II: Scheme against Deflation
The government sells government bonds to money market.
The central bank should purchase the government bonds from money market.
Then, the government buys back the bonds from the central bank with "government notes" which are only accumulated in the central bank.
The government can even exchange the government notes accumulated in the central bank with central bank notes it has collected from society through taxation, if possible.
The merit here is that the balance sheet of the government is maintained to be sound, though the one of the central bank would look complicated.
The currency of the nation will not be so badly evaluated internationally, since the government balance sheet is sound.
The total amount of money (central bank notes) in the nation can increase as much as its supply power and industrial power, in addition to national potential and power, allows.
*** *** *** ***
Is the regime change possible in China?
The U.S. is now divided more than before the emergence of President Mr. Barack Obama.
Japan is about to start to leave the era of the regime change realized through the 30-8-2009 election.
But this real G2 is going to align phases of their political and diplomatic stances against China, eventually, which can be the most significant threat to China.
As we press North Korea to carry out a through regime change, we have to press China to carry out a more exhaustive regime change so as to correct all the history textbooks used in China.
WikiLeaks proves how important it is to reveal truth to peoples in the world, though what computer hackers could do is always limited in terms of virtue.
The Gospels were written for a similar purpose. Some call them even as Good News.
The media industry today is so unique in this context, since they will be the first ones to inform peoples of Advent of Christ in theory. So, it is not that the best and brightest would try to be involved in the media industry but those involved in this industry have a chance to advance to be the best and brightest, if not a super hero, each.
(http://www.youtube.com/watch?v=c0xPjkBz6I8&feature=related
Do you know the No.9 version at the Nagano Olympics?
Beethoven was unable to get what he dreamed of, though he could express it with sounds.
If the 9th symphony were not for a super hero, whom or what is it for ever?
No matter how much poor or rich, one can advance to be a super hero. This might be a theme. But, it is against the human nature. A super hero must not belong to the world where existence of the rich and the poor is the norm.
At the year end, every year, Japanese people feel compelled to listen to No.9 to make it sure that they are under this law, perhaps...
That is also why they merely love what they can love, like everybody in the world.)
1Ch 12:15 These are they that went over Jordan in the first month, when it had overflown all his banks; and they put to flight all them of the valleys, both toward the east, and toward the west.
1Ch 12:16 And there came of the children of Benjamin and Judah to the hold unto David.
1Ch 12:17 And David went out to meet them, and answered and said unto them, If ye be come peaceably unto me to help me, mine heart shall be knit unto you: but if ye be come to betray me to mine enemies, seeing there is no wrong in mine hands, the God of our fathers look thereon, and rebuke it.