Feeds

Japanese economy staggers

Doom-laden report set to trigger new Asian collapse

  • alert
  • submit to reddit

High performance access to file storage

A year ago From The Register April 1998 Far Eastern stock markets and currencies plunged again today on the news that Japan's economy is near collapse. The new crisis was triggered by a damning Bank of Japan report on the state of the economy, together with an angry attack by Sony president Norio Ohga on prime minister Ryutaro Hashimoto's handling of the economy. Japan, he said, was close to collapse, may go into a spiral of deflation. The country is in its most serious situation ever and, he said, there was a danger of triggering world-wide recession. At time of posting the yen had hit a six year low against the dollar, and currencies elsewhere in Asia were following suit. The Bank of Japan quarterly 'Tankan' survey of the economy meanwhile revealed that its gauge of business confidence had fallen to minus 31, from minus 11 in December, and that investment, output and employment had all fallen. According to the Singapore Business Times Japanese shops have also begun marking prices in dollars as well as yen, showing public distrust of the currency, and showing how one recent liberalisation measure at least has backfired. The Japanese government recently made it easier for the public to obtain foreign exchange. The government has already promised a near-$200 billion reflationary package, but this is now seen as being inadequate, particularly as previous attempts have included large sums for unnecessary construction projects, and have simply had the effect of stopping construction companies going bust, rather than helping the economy in general. Europe and the US have meanwhile been lobbying for stronger measures to boost consumer spending, and the Bank of Japan's latest blow may at last prompt stronger government action. Japan's troubles will certainly ripple further through Asian stock markets today, and will likely make matters worse for its neighbours, particularly Korea's embattled chaebols. But the real threat now is clearly to Japan itself - in the crisis last year Japan seemed to stagger, but it was generally thought it had the resources to restructure and move on. But as the head of Sony has lost confidence in the government, now thinks this isn't automatically going to be the case, and is prepared to say so publicly, the rules have changed. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.