Latest Japanese economic news from an American.

Japan and America have been very active lately in the world markets in trying to solve their problems as nations. America is going now allowing china to buy directly from the Treasury instead of going through a broker to get out debt. Our president has now turned down a bill that would have given authority to build a pipeline from America to Japan to sell them LNG. (LNG is liquefied natural gas).

Japan could use this natural gas especially since it has to cut off its nuclear power. I have written about America helping Japan find some energy since we have a ton of it here in America. Natural gas is another area I am very strong in. I think it is very cheap and is much cleaner than coal or oil burning fuels. Japan would fit in well with natural gas.

Its a good deal to let Japan do its job in highly skilled manufacturing, medicine, research and science. Japan however, does not have any kind of decent energy sector. America is much better off doing the extraction, refinement and production of the final product. We would love to sell some to Japan. Natural gas here in America is 6 times cheaper than in Japan. Cheap oil prices must be helping Japan; it really is here in America.

In other news the Japanese central bank continues expansionary monetary policy and through Quantitative Easing participate in buying Japanese stocks in addition to debt.

My overall look is still for a sluggish growth for Japan and America. Both around 1-2% growth in the next year.


Thanks.