Wednesday, December 31, 2014

The ruling parties’ 2015 Tax Reform Proposal


Today, the LDP and KOMEITO announced the next year’s Tax Reform Proposal has been finalized. Seeing the proposal, there are some points that I would like to refer here.

One of the feature is reducing the corporate tax down by 2.51%. This is the very PM Shinzo Abe’s 3rd arrows in order to strengthen Japanese business entities and also aiming to invite foreign investments to Japan.

However, I wonder this would really work as planned because the ruling parties also mentioned to apply the external standard taxation system to the smaller business entities at the same time. As the external standard taxation is severer to business by imposing tax on loss makers while corporate tax is only imposed on profit makers.

Actually, Tokyo stock market did not go up on the final day today on the contrary to expectation of the tax reform news. I believe many investors already know that it does not give an impact on pushing up Japanese market higher.

Tuesday, December 30, 2014

DPJ’s presidential election

DPJ’s presidential election will be taken into place next month. This election is definitely critical whether the DPJ can regain the nation’s trust or not. At this moment, the candidates are not fixed yet but Mr. Katsuya Okada and Mr. Goshi Hosono are regarded the most favorites.

At this moment, to be honest, I do not decide to whom I vote as a member of the DPJ. I need take a time to contemplate it seriously. I myself believe that DPJ should speak out the government’s cost cut, the Diet members’ cost cut as the Japan renovation Party advocate. DPJ emphasized them a lot before. However, it seemed the voice was low these days.

At the same time, DPJ shall give a clear statement on the Constitution, which is a very controversial issue especially whether it recognizes Japan’s self defense force as an actual “Force” or not. I know it is quite complicated and difficult to give an answer immediately. Therefore, I would like to recommend that DPJ would show a new idea on the revising articles of the Constitution not only on the articles related to the security but also other criteria such as municipal issues or human rights even though it takes quite a lot of time. The idea that no articles of the Constitution should be revised is a quite obstinate and obsolete.

Monday, December 29, 2014

Russia’s financial crisis may cause negative impact on Japan’s economy.


Russia’s financial crisis due to decreasing petroleum prices would be more serious than expected. Actually, economic sanctions imposed by the US and European countries including Japan made a big impact on Russia.

As Japan import almost all of petroleum from overseas, it might be considered that the decreasing the prices are advantageous. If you see the situations in a short time period, the answer maybe yes because the price of gas at a gas station has been dramatically changed from 2 weeks ago. However, it may cause losing balance of world power politics among the US and other countries.

The US are very lucky after they found a tremendous amount of shale gas. Therefore, the US does not have to be too much sensitive on imposing stress on not only Russia but also on Iran and Venezuela.

As Japan and the US has made a strong alliance, the effects would be also coming to Japan. At the very moment, the government are discussing to legalize the collective defense force with the US.

I don’t believe this is the right moment to proceed the matter in a hurry.

Sunday, December 28, 2014

They want to invest in land properties.


LDP may want to spend the 50 trillion yen of national budget for creating social infrastructure for 5 years. As I wrote before, Japan is facing a severe financial deficit. LDP is doing the opposite things on behalf of fish.

It will make it worsen the financial situation. As the government has the total financial deficit of 800 trillion yen. The bankruptcy can never be the long way.

Saturday, December 27, 2014

The key that foreign companies invest in Japan?


When I worked for Sony Corporation, I visited London for business with Eriksson mobile. When I finished my job, I and my bosses went to dinner at a Chinese restaurant in London. There, an English guy spoke to us asking “Are you investing in England?”

It was all of a sudden so we did not answer the question as the master of the restaurant immediately took him away from us. But now, we need to invite lots of foreign companies so as to invest in Japan.

What is the key that foreign companies invest in Japan? Is it to make Japanese speak English? No. I don’t think so. Is it to reduce the corporation tax as the PM Shinzo Ame is suggesting? It may be one of the keys but I don’t think that this is the only solutions.

I suppose the key is to reduce regulations imposed by the government that is too much heavy in a foreign country. In Japan, there are still a lot of regulations that prevent foreign companies invest in Japan. We need to break them through.

Friday, December 26, 2014

Can LDP reduce the number of the Diet seats?

The PM Shinzo Abe made a promise with the former PM Yoshihiko Noda on reduction of the number of the seats of the Diet 2 years ago. The reason why Mr. Noda demanded is that he believed the Diet also has to undergo pain as the Diet imposes an additional consumption tax burden on people. Mr. Abe agreed to it at that time. But the number of the seat was only reduced 5 seats due to adjustment of equality of vote among city and local area.

Many people think it unfair that while tax is raised, the cut of the seats is very much limited. The opponent parties should jointly criticize the unwilling attitude of the ruling party.


Thursday, December 25, 2014

Is the 3rd Abe Cabinet launched safely?

Mr. Shinzo Abe re-inaugurated the Prime Minister yesterday after he won the previous campaign. The approval rate for his cabinet does not change compared with the time before the campaign. Does it mean that Abe Cabinet are stable? or that he could not boost the approval rate even making a triumph.

I think there are a lot of agenda that may cause criticism toward Abe cabinet such as recession of Japanese economics. However, he will continue his economic policies of “Abe-nomics.” Therefore, DPJ, the biggest opponent party in Japan will fight against them with its original economic policies.




Tuesday, December 23, 2014

Cyber attack, a new type of war thrust.

I wonder if Japan is safe against cyber attack. Sony Pictures is hacked by probably North Korea cyber attack. This would be very dangerous if Japan’s top authorities become a target. As 2 years ago, Japan’s Diet are also damaged by a cyber attack by an anonymous group and leaked information.

As internet is an indispensable infrastructure, its loss or damage are very critical today. Therefore, Japan’s government should be aware of importance of cyber terrorism and its attack. But I have to say that no vital responses are made by government until now. I believe more budget and other government resource should be allocated to this area rather than allocating them to the Self Defense Force.



Japan is facing a serious law voting rates.

In the previous national Diet lower House election, the voting rate is record law of 52%. In addition, in a municipal governor’s election taken place 2 months ago, the voting rate was critically low of 21%! The trend is continuing for several years after DPJ took the ruling power in 2009.

There are many reasons for the law rate. Like other countries, the voting rate of young people are very law as they are indifferent in politics. It’s very cynical and ironic. Considering employment situation or national pension financial situation, the current policy are very disadvantageous for the young people. As they do not vote, they are not made much of candidates actually.

However, this is a very dangerous situation from the view point of democracy. We need remedy for the trend. One possible idea is that imposing a fine for those who do not vote. Another idea is give some merits for those who vote. I think either method is indispensable for the election system.

I welcome your comments on which way you should take or any other crew or method you suggest.


Monday, December 22, 2014

DPJ’s Presidential election will be taken into place next month

How will become the next DPJ’s president? It is a very essential issue for DPJ to rebuild itself after undertaking a severe loss on the campaign. At this moment, an ex-minister Mr. Goshi Hosono has clearly stated that he will run for the campaign while Mr. Katsuya Okada or other senior members of DPJ are seeking a chance to run for the race.

The most important point on this election is that on what stance DPJ will stand. Voters are carefully examining where DPJ is going, or what DPJ will speak. There are two major lines on the point. One is seeking a chance to merge or co-operate with Japan innovation party. The other is going for rebuilding by itself.


I personally request that the candidates would clarify its attitude for such merge or co-operations. I don’t decide to whom I vote at this moment yet. Let me see.

Sunday, December 21, 2014

Japanese financial deficit is in danger



I wonder why Japanese people are indifferent to their own country’s financial deficit. It accumulates approximately 1,040 trillion yen (87.2 trillion USD). You can imagine how critical the amount is. As Japanese GDP is about 500 trillion yen, the deficit is equivalent to the double size of the GDP, which is one of the worst country among the major countries.

The Prime Minister Shinzo Abe says it is OK but I don’t believe so. He also states that the financial deficit will be improved in the next summer but the hope must be too optimistic to be believed.

Why the deficit grows such a huge amount? The answer is simple. The LDP did not take the effective solutions on the issue, nevertheless IMF or other finance experts are warning many times.

I think there are only few solutions left for the issues. One of them is to cut the government’s cost dramatically. Another solutions is raising taxes so as to absorb the deficit. What do you think it the best way?