TOKYO (majirox news) – They just don’t seem to get it, do they? Last night on the popular late night news show Hodo (report) Station the news switched momentarily from the rioting in Libya to the new lows hit by the government of Prime Minister Naoto Kan. According to Hodo Station opinion polls, support for Kan’s policies now stands at 11%.
“What’s more, support for the two major parties are at historical lows,” pointed out the broadcasters. “The Liberal Democratic Party, LDP, is supported by around 23% of the population and the ruling Democracy Party of Japan, DPJ, by 21%. “Even together they couldn’t form a majority government”.
Today Moody’s Investor Service weighed in with its opinion of Japan’s economy and political leadership, changing Japan’s bond rating from Aa2 stable to Aa2 negative. “It’s the economy, stupid,” as President Clinton once said.
Moody’s action itself is not a downgrade per se, but more like a warning shot across the bows—or as they would call it in the economics world, “a change of outlook.”
“The rating action was prompted by heightened concern that economic and fiscal policies may not prove strong enough to achieve the government’s deficit reduction policy and contain the inexorable rise in debt, which is already above levels of other advanced economies,” was the message from Moody’s.
Translated into layman’s language this means Japan is rudderless and drifting. Reports from the Naikakufu, the research office of the Prime Minister, suggest deepening economic pessimism, pervasive throughout all levels of society.
When time tested solutions work no longer, new ways of thinking are necessary. But how? This is the greatest problem facing Japanese society today.