GDP vs. Market Value (Produit intérieur brut par rapport à la valeur marchande)
U.S. Vice-President Mr. Joe Biden today visited an area affected by the 3/11 Earthquake/Tsunami of Japan.
He also met Prime Minister of Japan Mr. Naoto Kan in Tokyo. But, Mr. Kan is to resign as PM in a few weeks. It is because his approval rating has been around 15% in these months. He could not cope with the 3/11 natural disaster and the subsequent Fukushima Daiichi nuclear accident. He only launched an anti-nuclear power policy which however is now a common policy of all the lawmakers in Japan though to different degrees. Yet, what is worse, there is a suspicion that PM Mr. Kan made situation in Fukushima Daiichi worse. If everybody admitted his ability and competence, Mr. Kan should be allowed to stay in Prime Minister's Office.
The Japanese politics is not easy. The Japanese political community is always given a hard look at. If a prime minister could put together budget for one fiscal year, he should be content with it in Japan.
Japan is a country run under the most exhaustive democracy in the world. Voters and taxpayers can virtually recall their prime minister at any time. A Japanese prime minister needs a higher competitive edge.
SECTION I: Change of the World from 2010
As I wrote in these days, the world has started to change around 2010.
This fact is sensed through various situational evidence. It is also confirmed through a modified prophecy of Newton's, from 2060 to 2010, as I explained in these days. Though some global incidents, such as the revolution in Egypt and Libya, are so tangible, the true movement of the era is rather intangible. Yet, it is manifested in global economy.
SECTION II: GDP vs. Market Value
Some many people in the world try to acquire big money without working hard in fields, factories, and shops. They go to money market, buying cheap and selling high stocks and bonds. Their financial assets came to have total value more than total GDP of the world around 2000 and 2007. But, this trend was stopped. The sum of GDPs of countries in the world became twice larger, in the wake of the 2008 financial crisis, than the sum of global financial assets created in the New York Stock Exchange, the London Stock Exchange, the Tokyo Stock Exchange, NASDAQ, etc. It was a good sign. But now, as FRB has been providing huge dollars to the U.S. financial market, the ratio of financial assets against world GDP is on an increasing trend again.
Around 2010, the total market value of 52 major stock markets in the world is equal to 84.5% of the total world GDP.
(http://blogs.yahoo.co.jp/suzukieisaku1/folder/57001.html?m=lc&p=6)
As the above figure indicates the ratio of total market vale, represented in each year by a bar segmented by each stock market, against the world GDP, human desire tried to push the ratio of financial assets higher than GDP twice around 2000 and 2007. But, each time, it crashed as if having invoked wrath of God.
For example,
Ratio of Market Value over GDP in Major Countries:
UK...160%
USA...118%
China...117%
JAPAN...71%
Germany...50%
(http://happy2020.cocolog-nifty.com/blog/2011/01/gdp-f24a.html)
Value businesses create in a year in a country must be far larger than profits to be obtained by selling or buying stocks of the businesses. But, in the U.K., the U.S., and China, it is not observed.
Market value being more than 100% of GDP means that there are many people who live a rich life simply by selling or buying stocks. Ethic and virtue in labor, work, or service are remote things for them. Like criminals they live a rich life simply by selling or buying stocks. And, if there are too many people who do live on selling or buying stocks, market value in stock exchange will surpass GDP of a nation. And, it will eventually destroy all virtue and ethics in a nation.
In this context, mankind faced a crisis twice in the past: 2000 and 2007. And around 2010, it looks like the third challenge has been posed especially in the U.S. But, if it is suppressed, the world would not so simply get rotten.
The ratio of market value against GDP can be a measure of a moral crisis of the human society.
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Japanese prime minister is elected through a vote in both the houses of the national Diet.
However, the Lower House has overriding power. The decision in the Lower House is respected when the Upper House chooses a different lawmaker for the prime minister. And as the incumbent prime minister may resign at any time, this vote to elect the new prime minister can be done at any time in principle.
Therefore, a change of the prime minister means usually a change of the head of the largest ruling party that has a majority of seats in the Lower House. So, when the prime minister announces his intention to resign, the ruling party elects the new head of the party. Afterwards, the Diet elects officially the new prime minister.
Then, who is the ruling DPJ going to choose as their new leader to take over Mr. Kan?
Till today, Minister of Finance Mr. Noda has been regarded as the most promising candidate. But, today former Foreign Minister Mr. Maehara announced his entry to the election, displaying his popularity among party members. If Mr. Maehara should be elected as PM, Japan is going to have a very young prime minister against its standard.
(Looking for a lost sound...
http://www.youtube.com/watch?v=9aUSjxTmFFc&feature=related)
Joh 8:23 And he said unto them, Ye are from beneath; I am from above: ye are of this world; I am not of this world.
Joh 8:24 I said therefore unto you, that ye shall die in your sins: for if ye believe not that I am he, ye shall die in your sins.
Joh 8:25 Then said they unto him, Who art thou? And Jesus saith unto them, Even the same that I said unto you from the beginning.