10/07/2013

Adoration of Doing the Right Thing


If you find a man lying on rails and a train is coming up soon, what are you going to do? The woman put him safe place and then was hit to death by the train on her father’s watch. The tragedy in Yokohama City, Kanagawa, brought strong sympathy to the people’s heart in Japan. Everyone who praises her brave behavior, however, knows that sacrifice was what he/she would never do. People just want to be close to that heroic story to ease guilty feeling not being brave enough in their daily life. The phenomenon reflected apathetical aspect of Japanese society.

It is still unclear why the man was lying there, though one of the possibilities includes suicide. The woman, Natsue Murata, 40, was in a car with her father’s drive, waiting for a passage of train in front of the railroad crossing. Soon after finding the man, she got off the car, leaving her father words of “I must help him,” ran to him and laid him between the two rails. Sadly enough, she delayed in escaping from the train, which tried to stop before her but was unsuccessful. Suffering from some itches, the man survived.

After the news report disseminated, a lot of people visited the railroad crossing and prayed for her leaving bunches of flowers. One woman who visited the place told it was a brave activity with self-sacrifice to a TV camera, and another man questioned why nobody could help her. Perhaps because nobody was wrong in this story, what most people can do is praying for her, which is the most easy way to comfort grief inside themselves.

One cannot expect that those people who expressed their condolences to Natsue would change the way they live, and, as its result, Japanese society as a whole would not be kinder to people than ever. They may mostly keep on ignoring stranger’s behavior in a train car, street or park, afraid of being accused as intervention to other’s private affairs. If there had been something to help Natsue, it could be a society that reduces the reason of a man to lie on a railroad.

For example, asking the man trying to enter train crossing “Are you all right, sir?” would reduce the risk of unusual tragedy happening. However, the Japanese is a nation that is extremely shy in talking to a stranger. As long as they would not establish more warm and inclusive society, this kind of tragedy will happen again.

Anyway, the embarrassing was responses of politicians to the event. The Cabinet decided to give her the medal with a Red for her brave activity. Chief Cabinet Secretary, Yoshihide Suga, as well as the Governor of Kanagawa and the Mayor of Yokohama, attended to Natsue’s funeral on Sunday. It was obvious for everyone that those political appearances were simply attempts to take advantage of her death to appeal their acknowledgement of doing the right thing.

10/06/2013

Mizuho, Lack of Justice


On its basis, there has been exclusive mind of Japanese businessmen, in which they see higher value in the benefit of a specific group they are affiliated to than in social responsibility as an individual constituent. Mizuho Bank admitted that it had been ignoring loan transactions with crime groups since 2010, despite of their declaration of prohibiting them as a corporate compliance. It had simple background. Bankers wanted to be benefitted as much as they could before they would be accused. Justice of Japanese businessmen is not to be responsible for the society, but loyalty for their bosses.

Following a governmental guideline for preventing corporations from being damaged by anti-social powers in 2007, private banks in Japan determined their own standards for excluding crime organizations, or yakuza, in which they would close the account of such kind of clients. While most banks squeezed the exits of money to those organizations, Mizuho alone had been loose on doing that.

Most money lent to crime organizations went out through a subsidiary non-bank financial firm, Orient Corporation, to which Mizuho must have been responsible for its management. When crime organizations took advantage of used-car loan of Orient, Mizuho left examinations for the loan to it. Since most managers of Orient were formerly affiliated to Mizuho, the check for Orient’s finance did not work well.

It sometimes happens that a manager of a subsidiary is former boss of an employee in charge of the examination in main body. If the employee had been promoted by the effort of the former boss, he would not take critical action against former boss’s inappropriate business. In this case, conspiracy in hiding anti-social finance may be established.

What was serious for Mizuho’s case should be that four consecutive board members in charge had been ignoring the finance for crime organizations. It is fair to say that the finance had been the decision of the top, although the bank insisted in innocence of the president. Behind that, there was a situation that the bank suffered from swollen money inside, accumulated by lack of borrowers. The bank must have been in a hardship to the extent that it could not be careful of its corporate compliance.

In most business community, a worker who is desperately loyal to his/her boss would be promoted. Businessmen/women bought as much food as they could at convenience stores in business district of Tokyo in the evening of the Great East Japan Earthquake occurred two years ago, leaving none for others, to show fidelity to their colleagues. Being Frisbee dog of his/her boss may be fun, but it’s not funny at all for others. It is just leaving bitter memories in a society as a whole.

10/05/2013

Running to New Guidelines


Both governments of Japan and the United States agreed on revising Guidelines for Security Cooperation by the end of next year. Different from two previous guidelines, the first for dealing with potential threat of the Soviet Union in 1978 and the second for preparing for the contingency in Korean Peninsula, they will determine a set of measures against China. While Japan expects a firm commitment of U.S. enough to deter Chinese proceed to the Pacific Ocean, U.S. looks reluctant to be involved in Sino-Japan dispute over Senkaku Islands. How great the impact of this cooperation on China is still unclear.

The agreement was made in the U.S.-Japan Security Consultative Committee, often called “two plus two” with attendance of Secretaries of State and Defense of U.S. and Ministers of Foreign Affairs and Defense of Japan. Unlike precedents of the Committee being held in U.S. cities including Washington, D.C. or Honolulu, it was the first time for it to be convened in Japan. The Japanese officials reasoned it to be a demonstration toward China.

Joint Statement notified concerns against Chinese behavior. “[T]he Ministers continue to encourage China to play a responsible and constructive role in regional stability and prosperity, to adhere international norms of behavior, as well as to improve openness and transparency in its military modernization with its rapid expanding military investments,” says the Statement. In the press conference, Secretary of Defense, Chuck Hagel, said that U.S. would strongly oppose any unilateral or forcible action to erode Japan’s administration of Senkaku.

However, the agreement did not endorse possibly full-fledged military preparation of Japan. Asahi Shimbun reported a story that U.S. did not agree with referring to Japan’s possession of “striking capability of enemy’s bases” in the Joint Statement. That capability would change Japan’s role from having strictly defensive capability to joining striking, not necessarily be offensive, operation. That is what Prime Minister, Shinzo Abe, has enthusiastically been seeking.

While their attitude toward the outside is not clearly determined, internal affairs have not well been addressed. Although both governments stressed their efforts to reduce burdens of Okinawa, where 74% of U.S. bases in Japan are located in, the people in Okinawa are still frustrated with the attitude of the governments. Most measures, including admitting entrance to some U.S. bases designated to be returned to Okinawa and fishery in a practice area, are recognized as already taken for granted. Relocation of Futenma Marine Air Base is still up in the air.

10/04/2013

Undeterminable Politics in America


The big mess in Washington politics is affecting world economy. Tokyo Stock Market marked steep down this week, broadly recognized as a reflection of pessimisms for American economy. It looks like American version of “undeterminable politics,” into which Japan had fallen under the administration of Democratic Party of Japan. A key to get rid of this vicious circle is simple: compromise.

Main reason why government had been shut down was on the side of President. Barack Obama knew that the structure of the Congress had been against him after GOP took majority in the House of Representatives. As he said in the address to the nation on military option against Syria, United States is “the world’s most oldest constitutional democracy.” In the context of U.S. Constitution, GOP’s firm denial of Obamacare is nothing illegal. It is Obama who needs to take plan B, if any, not to let his personal agenda disturb international economy.

On the Capitol Hill, however, there should be a question: “What in the world is this struggle for?” Under the initiative of Tea Party, GOP chose all-out opposition without any exit strategy. As its result, the party brought the nation unreasonable inconveniences, including cancellation for trip to national parks, limited access to official website of governmental agencies, and depriving government workers of their job opportunity. What GOP has gained with this showdown is a reputation that it would sacrifice the people for their political advantage.

It is obvious that this kind of political gridlock could only make both players losers, in the experience of Japan long suffered from “twisted parliament.” Leading party would lose a great amount of support, with deep disappointment on the handling of politics of the leaders. Lagging behind in decision for consumption tax hike or Trans-Pacific Partnership, Democratic Party of Japan drew down harsh criticisms on itself, causing crucial defeat on the elections.

On the side of the opposites, they would realize the necessity to follow the policy anyhow. Although Liberal Democratic Party was reluctant to accept the tax hike and TPP, they had to follow those policies when they took leadership at the end of the day. That double standard invited criticisms againsttheir policy. It also harmed the party’s credibility.

There will also be no winner in the United States, too. In the time that situation in Middle East is getting complicated with engagement of Islamic terrorists group on regional problems, that China is building up its capability to cast greater influence on Asian nations, and that European nations are struggling for maintaining democracy, U.S. cannot be allowed spending time for an endless political game.

10/03/2013

God of Japan Moved


It is believed in Japan that the body of God rests in Naiku, the main sanctuary of Ise Shrine. In that body enshrined is Amaterasu Omikami, or God of the Sun and mythically the founder of Japan. The God moves Her residence for refreshment every twenty years. The ritual for that was carried out in the evening of Wednesday, with attendance of imperial families and Prime Minister. Although the leaders cerebrated Her move so closely, nobody knows whether She was satisfied with current situation of this nation.

New building of Naiku was settled next to old one. Next new building will be replacing the old one twenty years later . The move was actually bringing the body of God, actually the Mirror that consisted of one of the Three Sacred Treasures as well as the Sword and the Juwels, from old building to the new. The ceremony began with artificial crying of rooster and the body was transferred in the darkness on the road with several hundred feet, spending forty minutes. This religious ceremony started about thirteen hundred years ago, and the latest was the sixty-second ceremony according to news reports. Officials of the Shrine believe the move is based on the concept of eternal youth, as well as for maintaining technology of shrine carpenters.

In old myth, when Amaterasu Omikami was invisible hiding Herself in a cave, the world became dark and full of disasters. After She reappeared from the cave, the world regained light. For believers, this move for the first time in two decades was one of the few chances in their lifetime to see Her out of the shade of the Shrine and pray for happiness for their lives. Not only three thousands of official guests in Naiku, but a lot of people waited for the first visit to new building outside of the Shrine.

One possible stain appeared along with the cerebration was political dispute over the legitimacy of PM’s attendance. Article 20 of the Constitution says “The States and its organs shall refrain from religious education or any other religious activity.” Buddhists and Christians raised question over Abe’s visit to the religious event of Shintoism. Chief Cabinet Secretary, Yoshihide Suga, reasoned Abe’s attendance to be a private individual visit, not a public person, the justification which the government often use in the visit to Yasukuni Shrine.

Most people do not care whether the visit of PM was private or official. They prayed for their happiness, or stability of their life. No matter how political leaders appeal their effort to protect the nation, it is God who gives psychological security to all, praying also for eternity of Her.

10/02/2013

Governmental Theft


In his remarks at the press conference to officially announce the consumption tax hike on Tuesday, Prime Minister, Shinzo Abe, emphasized his determination on use of the additional income brought by that tax reform for nothing except rebuilding social security system. It was not strange at all for him to have said that, because the law for that tax reform unequivocally says so. Meanwhile, Abe was going to deliver economic stimulus policy with a large amount of fiscal spending. It is a sort of theft for a government to take advantage of the tax money for a different purpose from what it once promised.

Abe reiterated that the economic stimulus would be compatible with fiscal reconstruction, trying to persuade the people that new additional tax would work for improving fiscal structure. “I will secure stable fiscal resource to maintain and reinforce social security system by consumption tax. The income of the tax will be used for nothing but social security,” told Abe in the conference. He looked like obeying the requirement of the law.

Let us see the balance. The expected additional income of that tax hike is ¥8.1 trillions a year. The spending for the policy package of economic stimulus will be ¥5 trillions. One can understand the dishonesty of his words, because even though the government collects tax money for social security, five out of eight of that will be spent for building infrastructure, tax reduction for corporation or relief for house purchasers. The budget for social security, mainly for maintaining pension system, medical treatment and nursing care insurance, will still be in short of sufficiency, even if the consumption tax rate is raised up from 5% to 8%.

Approving the design drawn by former administration of Democratic Party of Japan, Liberal Democratic Party led by Abe supported the bill for the consumption tax hike last year. Then PM, Yoshihiko Noda, appealed to the public that consumption tax was the most appropriate and stable fiscal resource for maintaining social security system for the future, in which few young agers would have to support many old people. The fact is Abe has shifted its purpose from welfare to economy, eroding budget for social security.

As shown in the middle of the great disaster, the Japanese are silently waiting for help of government with surprising perseverance. On the other hand, they may show enthusiasm on dancing for created music, or bubble economy. If the Japanese want to secure the future of their kids, it is obvious for them to reserve resource for that. However, the leader of them does not like to deal with long-term issue, which political effect is not clear. His policy, therefore, is shortsighted, focusing on the victory in the elections three years for now.

10/01/2013

Nothing But Tax Reduction


Prime Minister, Shinzo Abe, finally announced his gambling economic policy package on Tuesday, which included ¥2 trillions of tax reduction for corporation. It was aimed to put business on the top among his policies, even beyond crisis stemming from the Great East Japan Earthquake and accident in First Fukushima Nuclear Power Plant. If he fails in getting rid of long-time deflation, the greatest cause of his economic policy, he will be blamed as a cruel leader who turned his back to victims of the disaster.

The measures for encouraging business were compensation for introducing higher rate of consumption tax, additional 3% on current 5%, starting next April. Although Abe took a pose as if considering about whether or not to do it, it had been unrealistic to turn down the introduction, for making decision of the tax hike would require a great deal of political power, if he had abandoned it.

Abe’s preference to business sector was outstanding, anyway. He made up his mind to pour ¥5 trillions to avoid negative impact of consumption tax hike. For companies that introduce new capital investment, the government will ease taxation. If a company settles new high-technology devices, there will be tax relief of 5% or application of one-year depreciation with lighter tax burden. When another company increases total wage for employees by 2% in FY 2013 and 2014 or 3% in FY 2015, it can receive tax ease in other ways.

What he receives from both supporting and opposite parties are criticisms on his decision of ending special corporate tax for reconstruction one year earlier than planned. He takes ¥900 billions into account for its positive impact on companies. He also insists on that recourse for compensating the budget for reconstruction has been already reserved. However, he does not approve taking advantage of that resource directly for reconstruction, instead of corporate tax reduction.

In addition to corporate tax reduction, Abe introduces economic stimulation policies, which include giving away of cash to low-income families and new house buyers. The rest of policies, which are actually of the greatest amount in the package, are routine investment to infrastructure constructions. Total amount of the package will be ¥5 trillions.

This extreme preference to corporation may bring moral hazard of fiscal policy. It is still possible for companies to stock money they will get from tax reduction, instead of paying enough salary to their employees. There is an idea even in Liberal Democratic Party to introduce new tax for that internal reserve. All depends on whether Abenomics will be successful.