U.S. is no Japan

At least when it comes to the current economic problems faced by the United States when compared to Japan's economic crisis during the Lost Decade of the 1990's.  This is according to economist Carl Weinberg. 

I have heard this comparison before and they are similar.  Both Japan and the United States had massive real estate bubbles.  I believe Japan's was more in the commercial sector while in the USA, it was based in the residential real estate sector.  They both spread to the financial sector resulting in massive losses and failures in the banking and financial industry.

But what I have also heard and read several times recently, and repeated by Mr. Weinberg, is that how Japan and the United States dealt with their economic and banking problem was and is quite different.  Below are some quotes from Mr. Weinberg that explains the differences in how Japan and the US dealt with the crisis.

"What happened in Japan was a more serious crippling of its banking sector followed by inept policies aimed at covering up imbalances in the system, not addressing them," Mr. Weinberg wrote. "Policy makers today are doing the right thing, which is to bridge the credit crunch and to rehabilitate the institutions. Today's episode will be long — longer by far than a normal downturn — but it will not be catastrophic."

The Japanese  banks were sitting on a mountain of non-performing loans that was as big as GDP, Mr. Weinberg wrote. They couldn't write off the loans or they would go bust. The government provided new accounting rules instead of new capital to support the system. Banks couldn't lend, borrowers couldn't get any money.

"In the current financial crisis, bank problems are being addressed by both generous liquidity to keep them afloat and public and private capital injections to speed up the healing of balance sheets," he added. Borrowers remain generally creditworthy and there is important fiscal stimulus coming on stream which Japan did not get around to until well into the collapse.

"The enormous insolvencies and policy errors Japan endured in the 1990s are not being repeated, so we do not see many parallels between them and what everyone is experiencing today," he said. 

The problems in the US are bad, worse than in decades.  But they probably won't be as bad as what happened in Japan and it will be nowhere near as bad as it was in the Great Depression.  People and the media need to stop throwing around the big D word because it is not going to happen and only creates more fear.  But of course fear is what sells newspapers.

About Nikko - The Ishidorii

The Ishidorii is a stone torii gate that was originally dedicated in 1618. It is 9 meters tall and the pillars at the base have a diameter of 3.6 meters. The Ishidorii is considered one of the three best stone torii gates in Japan. It is the biggest among the stone-made torii gates from the Edo period. The other two gates are located at the Yasaka Shrine in Kyoto and the Hachimangu Shrine in Kamakura.

Emperor Gomizunoo (1596-1680) wrote "Tosho-daigongen" (Divine designation of Ieyasu Tokugawa) which is on the frame on the upper part of the Ishidorii. The main material for the gate is granite which was produced in Fukuoka prefecture. The gate is made up of 15 pieces of the stone material. Each piece is connected by an axle, and the crossmembers have cavities to reduce the weight. The gate also was designed with earthquake resistant features. The joint of the cross members slipped during a 1949 earthquake but they shifted back into place during subsequent aftershocks. (Nikko Tourist Association)

This is a pretty impressive gate. It is at the top of a long series of wide steps which are at the top end of a short dirt road within the Toshogu temple complex. In 2004, I attended the annual 1000 Samurai Procession Festival. I was at the bottom end of the road looking back up towards the Ishidorii. The 1000 samurai bagan their procession near the gate and proceeded down the road. This event occurred on a Sunday. On Saturday, there was a demonstration where horse-mounted samurai road full-speed up the road without using their hands to guide the horse. They were using both of their hands to fire a bow and arrow at targets as they flew by at full speed. They guided their horses with their legs. (Previous post on this festival).

Interesting videos about Geisha

Some interesting videos about Geisha.

Top Japanese pitcher close to deal with Red Sox

The AP reports Japanese pitcher Junichi Tazawa moved a step closer to signing with the Boston Red Sox after rejecting offers from three other major league teams.

The 22-year-old right-hander contacted the Texas Rangers, Seattle Mariners and Atlanta Braves on Friday to reject their offers, Kyodo News agency reported Friday.

Tazawa is expected to hold a news conference early next week to announce his decision. He reportedly received offers from the Rangers, Braves, Mariners and Red Sox.

Whale Wars

There is a new series from the Animal Planet channel. It is a TV show that follows the environmentalists that harass and attack the Japanese whaling ships.

Let me state that I am not happy about the killing of whales. But I am also not happy with the extreme environmental activists. The "eco warriors" or the "eco terrorists". I put these whale activists in these categories. Eco terrorists. They break the law and engage in dangerous activity in order to try and stop the legal whaling activities.

I sent an email to animal planet stating that I did not agree with their TV show which I told them glorified these illegal eco terrorist activities. Below is the Animal Planets response to my email:


Dear Viewer,

Thank you for contacting Animal Planet.

Last winter, Animal Planet's producers were embedded with the Sea Shepherd
Conservation Society, a non-violent conservation group that uses hardline
tactics in stopping alleged illegal whaling activities, founded by former
Greenpeace member Paul Watson. The new television series, entitled WHALE
WARS, is an intimate character study of the members of the organization on
how far would they go to stop this practice.

Several much-disputed and internationally publicized incidents unfolded
during the filming, including two Sea Shepherd crew members boarding and
being held by a Japanese vessel, as well as when Watson claimed to have
been shot during an encounter with another Japanese ship – a claim the
Japanese whalers adamantly deny. Watson, who was wearing a protective
vest, was unharmed in the situation.

Animal Planet showcase these events, the challenges, missteps, mishaps and
more in WHALE WARS spotlighting this global conservation issue that has
several nations at odds over the practice of whaling in oceanic
territories. In allowing viewers to get a closer look, Animal Planet in
no way endorses Sea Shepherd or their controversial tactics but thinks it
is important for viewers to judge for themselves. By the outpouring of
responses, it appears that is exactly what viewers are doing.

Thank you for your interest in our programming.

Sincerely,

Viewer Relations
Animal Planet



The advertisements for the new TV show clearly glorify the activists. The ads have some of the eco whale activists speaking of their cause while emotional music plays and scenes play of their dangerous and "heroic" activity. It seems to me Animal Planet appears to be is endorsing their activity.

The Life of the Great Sakamoto Ryoma

I could write pages on Sakamoto Ryoma but I will just list some of his high points and accomplishments.

Ryoma was a samurai from the Tosa domain. He abandoned his domain in 1862 to join the Loyalists fighting to restore the emperor to power, overthrow the Tokugawa Shogun and expel the foreigners.

In 1862, Ryoma decided to assassinate Katsu Kaishu. Katsu was a high ranking officer in the Tokugawa government. He was the commander of the ship "Kanrin-maru" on it's first mission to the U.S., sent by the shogun for the purpose of signing the Japan-U.S. commercial treaty. He was, perhaps, the most progressive person in the Shoguns government. His ideas on communicating with foreigners and his apparent support of the shogun aroused the anger of the Loyalists.

Katsu apparently knew of Ryoma's true intentions and persuaded him to listen to his views before taking any action. As Katsu later wrote, Ryoma did listen, admitted his true purpose, and said, "I am ashamed of my narrow-minded bigotry and beg you to let me became your disciple." After that, Ryoma introduced his friends to Katsu. It was an abrupt change in Ryoma's philosophy that led him to become a trusted mentor of Katsu. Katsu was convinced that Japan should have a navy for protection from other countries. But Katsu also knew that Tokugawa regime was weak.

Katsu persuaded the shogun to establish a naval school in Kobe. Katsu soon appointed Ryoma as a head of the new school.

In 1864, Japan continued to destabilize. The Choshu clan had bombed Dutch ships, the Satsuma clan had fought with the British at Kagoshima, and more assassinations had taken place. Later the two clans were attacked by a western allied forces. Satsuma and Choshu suffered humiliating defeats which forced them to realize the power of the west.

In 1864, Ryoma with about 20 friends started the "Kameyama Shachu" (the company) which would later become known as the "kaientai" (Naval Auxiliary Force). The kaientai is sometimes called Japan's first corporation. Ryoma modeled his corporation on foreign corporations with shareholders and investors. The company was used to aid Choshu and other domains with guns and other weapons to fight the Tokugawa.

Although Satsuma and Choshu were both rivals of the Tokugawa, they were also bitter rivals to each other. Ryoma began working hard to unite these to rival clans. He knew that if Satsuma and Choshu were united, they would be strong enough to defeat the Shogun. Ryoma finally realized his dream by convincing these two clans to unite in 1866.

The following day, Ryoma was staying at an inn where his girlfriend Oryo worked. The government learned of his negotiations with the two clans and sent soldiers to attack him. Over 20 soldiers broke into the house. Ryoma earlier had obtained a revolver and he used it against his attackers but his fingers were so badly wounded in the sword fight that he could no longer shoot. Ryoma escaped out the back and to safety at the Satsuma mansion in Kyoto where his wounds were nursed. After this event, Ryoma married Oryo.

In 1867, one of Ryoma's commercial ships was sunk negligiently by the Kii clan, who were relatives of the Shogun. Ryoma began negotiations with the Kii clan to try to secure funds for its replacement. Ryoma had become very familiar with international maritime law and Ryoma wanted this to be the first accident resolved by using maritime law in Japan. He succeeded in obtaining a rather large sum of money from Kii. The Kii clan was humiliated and Ryoma became famous.

Ryoma was now one of the most influential people in Japan, even though he was just a "lowly ronin".

Ryoma now believed that avoiding a bloody civil war was necessary to avoid foreign subjugation. He came to believe that the best plan to avoid war would be for the Shogun to relinquish power to the emperor peacefully. Ryoma told Goto Shojiro, a Tosa official, his idea and he in turn relayed it to the Tosa lord, who thus became the first to formally ask the Shogun to resign.

Ryoma's ideas for a new government were outlined in his Eight Point Plan. He suggested that power should be returned to the emperor and that the value of gold and silver be equalized with that of other countries. Ryoma made a list of the new government officials which was read by Saigo Takamori of Satsuma who wondered why Ryoma did not put himself on the list. Ryoma then told him, "I don't like the red tape and I have a dream that I will have business with western countries using my ships."

Stunningly, the shogun accepted Ryoma's plan to return his authority to the emperor in October of 1867. Sakamoto Ryoma's great efforts over the last five years led to the downfall of the Tokugawa Shogun, who's family had ruled for over 250 years.

In November of 1867, Ryoma was in Kyoto with his friend Nakaoka Shintaro. On the 15th they were both assassinated at a soy sauce shop called Omiya. Ryoma was 33. It was never proven clearly who assassinated Ryoma but many believe it was Kii domain in revenge for their humiliation in the ship sinking affair.

What was unique about Ryoma compared to many other leading men during this time in Japanese history, Ryoma thought of equality and freedom and he hated the class distinctions that existed in Japan.