Is the Japanese Depression Finally Ending?

Japan is the world's second largest advanced economy. This is still the case even though Japan has been in a depression for the last 15 years or so. But imagine what Japan could do for the world if that giant economy were growing instead of beign depressed? Rising waters lift all ships. Japan is a liberal republic and a capitalist nation. If Japan experienced an economic boom, the United States would benefit as well. As far as security concerns go, a healthy Japanese economy will make them more able to resist Chinese imperialism.

In short, I hope that the economic forecast made by Economics Minister Kaoru Yosano is correct.

Japan's economy is entering a period of self-sustained recovery and is close to escaping deflation thanks to increasing consumer demand, the country's top economics official said Thursday.

The comments by Economics Minister Kaoru Yosano come as Japan emerges from some 15 years of stagnant growth held back by deflation -- or continually falling prices -- weak consumption and declining corporate profits.

"The end of the long tunnel of deflation is coming into sight with the Japanese economy entering a self-sustained recovery based on private demand," Yosano said in a speech at the Keidanren, Japan's biggest business lobby.

As company earnings recover and prices start to stabilize, investors have lifted Tokyo stocks to five-year highs.

And with that bit of positive news, I bid you all a very merry Christmas.

Cheers.

posted by The Sovereign Editor | 1:00 AM

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