In the last 70 years, technology gaps in defence have increased hugely. US and Russia are far ahead from rest of the world in making arms and armaments.
- Japan sends jets after Russian planes (cnn.com)
- 70 years later, a WWII pilot soars once more in a Flying Fortress (warhistoryonline.com)
- F-35 Joint Strike Fighter: Singapore’s Next-Generation Fighter? – Analysis (eurasiareview.com)
- WWII Bombers Fly In To Tallahassee Airport (wctv.tv)
- Canada unsure what will replace Hornets (upi.com)
Now that Japan has joined the currency devaluation game, it leaves the Euro twisting in the winds of currency storms.
- Japan reports record $78.3B trade deficit in 2012 (miamiherald.com)
- Yen at 100 Per Dollar Endorsed by Japan Official Nishimura – Bloomberg (bloomberg.com)
- Japanese Export Slide Bolsters Abe’s Case for Driving Down Yen – Bloomberg (bloomberg.com)
- Business › Japan reports record Y6.93 tril trade deficit in 2012 (japantoday.com)
- Japan min-not trying to weaken yen, central bank (uk.reuters.com)
- Japan minister: not trying to weaken yen, central bank (news.yahoo.com)
- Japan December Industrial Output Rises Less-Than-Forecast 2.5% – Bloomberg (bloomberg.com)
- Dollar Thrives in Age of Competitive Devaluations – Bloomberg (bloomberg.com)
- Better Factory Output, Lower Manufacturing PMI Contraction Put Japanese Economy On The Path Of Recovery (ibtimes.com)
- Japan runs record trade deficit (bbc.co.uk)
Fat and lazy
Between 1875-1935, Britain was dependent on India for gunpowder, on USA and Iran for oil, on Malaya and India for rubber. British economy had grown fat and uncompetitive – unlike Italian, German and Japanese economies.
Even though Britain won WWII, their economy was a lost cause. Though Germany, Italy and Japan were losers, with their economy in shambles, they could make a brilliant recovery and vastly out-compete Britain.
The story of Middle East oil is similar for USA and West. The Welfare State, built on a diet of cheap oil, easy dollars, is now too expensive for the West to sustain. The above book extract gives an excellent snapshot of the oil industry in the 20th century.
And the shadow of oil on the 21st century.
- Onward, American Soldiers! Another million await death. (quicktake.wordpress.com)
- Out with the old? (bbc.co.uk)
- UK economy trailing (thesun.co.uk)
- Skidding Oil Prices: A Blip or a Trend? (green.blogs.nytimes.com)
An Indian problem
Now one of the problems of India, having English as an important language, is the amount of swill, garbage and propaganda that we are subjected to.
In spite of being less than anybody, British media can be pretty biased.
One example was a post by Ian Campbell on Japan’s economic problems. He says,
Japan has … has the worst debt to GDP ratio among major economies … But the interest yield on Japanese government bonds is … not much more than 1 per cent, so the debt is not yet so problematic – and might not seem an obstacle to still more spending. … In just five years, even assuming the economy grows, debt might climb to 230 per cent of GDP … the hideously large debt would finally drive the fiscal deficit far higher and become intolerable.
Japan’s only route then would be drastic fiscal reform or, more probably, huge resort to the printing press, as Latin America did in the old days and Zimbabwe in more recent times. (via Nokia’s billion-dollar man).
Sad Brits …
Campbell, a British journalist, compares Japan with Latin American and African Governments who have printed a lot of money.
But surely he knows that Western Governments – under the leadership of Ben Bernanke printed much more than Africa and Lat-Am could and did! Why is Campbell not talking of British, European and American printing presses?
Is there a racial smell and smear somewhere? Did I hear him say ‘These irresponsible Blacks, Latinas, Browns, Yellows …’
Now Japan’s problems are minor – because they have solid, well run, high tech companies, whose products are in demand all over the world.
Off their peaks, these Japanese firms still have mean clout in business world. Japanese interest rates being so low will not change Governmental economics by much. So, why compare Japan with Latin America or Zimbabwe?
Of course, you cannot compare Japan to Spain – where prostitution is a national industry. Or Ireland, or Greece, which have lived on handouts for the last 100 years.
Maybe you should look at British debt my dear sir!
Is it wishful thinking Mr.Campbell? Balanced your judgment is not. Or is it just plain malarkey? Methinks, it is ‘White’ noise!
Ian Campbell, who has “recently returned to the UK, where he is writing a book on rural Mexico.” could utilize his time much better writing about rural Britain, which depends on huge subsidies from a nation groaning under 500% Gross-National-Debt (GND-that is Govt.+Corporate+household).
Now British GND (no hindi puns intended) is a much-more-hideous. Than Japanese at 500%. We both know that British exports are going nowhere!
Let us look at British economy
First the biggest sector of British corporate sector is about digging, extracting and selling natural resources.
A historical legacy – with little value-addition. Royal Dutch Shell, BP, North Sea Oil, XStrata, Anglo American, Rio Tinto Group, BHP Billiton, BG Group, National Grid, Scottish and Southern Energy, Centrica. That is 10 of the top 30 British companies. These companies mostly have their assets abroad – and if push comes to shove, you know these companies will go where their bread is buttered.
The second leg on which British industry stands today is cracked leg of banking and insurance – HSBC, HBOS, RBS, Lloyd’s TSB, Barclays, Standard Chartered, Aviva and Prudential. The British part of the business of these 8 financial firms is in mess. The international business is subsidizing the British business. How long do you think this will last?
The third wobbly leg is pharmaceuticals made up of two companies. Glaxo-Smithkline-and Astra Zeneca. Both are in doldrums due to competition from generic Indian companies – and may look good to beery British journalists boozed in a pub. Now these are the three legs of British economy. We know that three legged stools are always prone to topple over.
That was lesson No.1 for you Campbell.
Lallu has a few things to say here
Lesson No.2 is what our colourful former Railway Minister said, “इस हमाम में सब नंगे हैं” (meaning “everyone in this bathhouse is naked”).
No offense to colour black, but then black pots must not call yellow kettles names.
It is plain bad journalism!
- Our Government Is Now So Huge That It’s Choking The Private Sector (businessinsider.com)
- Dollar hits 15-year low vs yen, jumps vs euro (seattletimes.nwsource.com)
- China Buys More Japanese Debt Than Ever Before (businessinsider.com)