By Johan Galtung
From Kyoto, Japan
When Prime Minister Shinzo Abe was forced out of office on September 2007 his focus had been on a strong foreign policy, against the peace Article 9 in the constitution, rewriting history and patriotic education, but not on economic improvement. This time Abe has added strong economics, dubbed abenomics; including the hyper-capitalist TPP, Trans-Pacific Partnership. Not to irritate the US, Abe-LDP (Liberal Democratic Party) sees itself as the guardian of Japan’s security against China and North Korea.
On April 4 the Bank of Japan announced a policy of QE, “quantitative easing” – Orwellian for printing money–doubling the circulating money to 270 trillion yen in two years to turn Japan’s 0.3% deflation to 2% inflation. With so much yen around devaluation follows, making Japan more competitive. With the Bank of Japan buying state bonds, public works could follow, for employment. With both, economic growth.
As a consequence the dollar soared, from 76 yen some years ago to 100; the Nikkei market index soared to above 13,000 for the first time since August 2008, and Abe’s approval rating to 70%. So far so good.
And then, what happens? The hope is to regenerate the golden 1960-70-80s Japan. But both the world and Japan have changed.Read More »


