Japan economy in biggest dive since 1974

[UpInArms]

Source: Reuters

TOKYO (Reuters) - Japan's economy shrank in the last quarter by its most since the first oil crisis in 1974, hit by an unprecedented slump in exports, which is likely to lead to more calls for extra stimulus steps to fight the deepening recession.

Japan has not suffered much directly from the burst of bubbles in the U.S. credit and housing markets, but its heavy dependence on exports in the face of soft domestic consumption has led to a sharper contraction than most other rich countries.

As the rich world faces the most significant and synchronized downturn in decades, the Group of Seven (G7) policymakers pledged over the weekend to do all they could to combat recession.

Japan's economy shrank 3.3 percent, or an annualized 12.7 percent in the fourth quarter of 2008 -- three times the fall in gross domestic product in the same quarter in the United States, at the epicenter of the current global crisis.

Read more: http://www.reuters.com/article/ousiv/idUSTRE51F04720090216?sp=true

[MADem]

1. $1=91.80 Yen

I can remember when the dollar was trading at well over two hundred yen.

It's still way too expensive for me over there, nowadays!

[Bonobo]

2. I'm going in 2 weeks. Blech.

I'm thinking of saving money by using dollar bills instead of tissue paper.

:(

[Mr. Hyde]

3. I'll be happy to take those dollar bills off your hand if you don't want them.

[MADem]

4. Hahahahahahaha!!!

I know, it's not funny....but it is, too... kinda.

You could always bring an extra checked bag full of toilet paper, canned goods, crackers, and other essentials!

Seriously, I do that if I'm "Third Worlding" it. Sometimes, it's easier, especially if you can't afford to get the Globetrotting trots. No reason not to do it in order to save a few bucks (or yen) on the local economy....

[Bonobo]

5. Unfortunately...

It is an 8 week stay on an expensive island... Can't bring enough food to be worth it,

[MADem]

6. Which island? Okinawa, Honeymoon land? Or something jazzier?

It's nice there this time of year!

[Lost in CT]

7. Monster Island? nt

[Bonobo]

9. Nowhere you ever heard of.

Small island off Himeji. You can figure out if you care enough.

NOT jazzy BTW.

[The Brethren]

8. LOL!!

Now that's an idea.



The Stimulus Plan ("American Recovery and Reinvestment Act of 2009"): Orig. House version -- http://appropriations.house.gov/pdf/RecoveryBill01-15-09.pdf , House spreadsheet -- http://spreadsheets.google.com/ccc?key=pV-c6t5fOVmNorqMpHvnCMw ; Senate version -- http://appropriations.senate.gov/News/2009_02_02_The_American_Recovery_and_Reinvestment_Act_of_2009.pdf ; and Senate compromise -- http://www.govtrack.us/congress/billtext.xpd?bill=h111-1 , Text and $$$ details of Senate compromise -- http://appropriations.senate.gov/News/2009_02_08_UPDATED_Appropriations_Provisions_of_American_Recovery_and_Reinvestment_Act.pdf?CFID=4043629&CFTOKEN=40573040 in addition to -- http://readthestimulus.org/amdth1.pdf ; along with -- http://www.readthestimulus.org/ .

[Ghost Dog]

10. Japan finmin denies drunk at G7, faces call to go

Mon Feb 16, 2009 3:09am EST TOKYO, Feb 16 (Reuters) - Japan's finance minister denied on Monday that he had been drunk at a G7 news conference but the opposition demanded that he be fired, piling pressure on unpopular Prime Minister Taro Aso ahead of an election this year.

Shoichi Nakagawa, 55, a close ally of Aso, said he had not drunk more than a sip of alcohol before the news conference that followed a Group of Seven finance leaders meeting in Rome.

But he said he had taken a large amount of cold medicine, which may have affected his performance badly, and that his future was in the hands of Aso.

The fuss over Nakagawa's behaviour at the news conference comes as Aso's public support is plummeting ahead of an election that must be held no later than October and as the economy sinks deeper into recession.

...

At the news conference with Bank of Japan Governor Masaaki Shirakawa after the G7 meeting, Nakagawa's speech sounded slurred. At one point, Nakagawa, his head down and eyes closed, mistook a question directed at the BOJ governor as one for him.

...

The minister said his performance at the G7 had not harmed Japan's standing or its relations with other G7 members, but the main opposition Democratic Party disagreed.

"It's embarrassing. This has sent a message to the whole world," Democratic Party Secretary General Yukio Hatoyama told reporters. "Really I think he should be fired immediately. He's damaged the national interest."

...

Political analysts said if Nakagawa stepped down or was axed it would be a serious blow to Aso, who appointed his close ally to hold both the finance minister post and the banking supervision portfolio when he took office last September.

"Losing someone in charge of the financial system and public finances at this juncture ... is potentially lethal for his (Aso's) own tenure," said Koichi Nakano, a Sophia University political science professor.

...

Japanese TV broadcasters and national newspapers issued news stories calling attention to Nakagawa's behaviour at the news conference at the G7 gathering to discuss the world financial crisis. Video of the media conference was widely circulated on the Internet.

/... http://www.reuters.com/article/marketsNews/idINT22909120090216?rpc=44&sp=true

[Ghost Dog]

11. Yen wipes gains vs dlr after Japan finmin says may resign

Mon Feb 16, 2009 4:28am EST LONDON, Feb 16 (Reuters) - The yen fell to a session low against the dollar on Monday, wiping out earlier gains after Japan's finance minister said he may resign if asked to.

...

"The yen has weakened slightly on this news, although the movement is relatively small," a London-based trader said, noting that the euro was still down 1 percent on the day versus the Japanese currency

/.. http://www.reuters.com/article/marketsNews/idINLG8770020090216?rpc=44

[Mr. Hyde]

12. Hard to buy hitachis, hondas, samsungs, toshibas, etc when you can't even make the house payment.