Japan Strategies to Reduce Inflation and Correlations to U.S. Economy. Thoughts of the Days Just Before and After 9-11.

It is asked, to ask the questions that come to mind after reading both of these stories, and answer those questions, with or without whether an analysis is necessary to do so:

Story 1, published by the NY Times this yesterday:
http://www.nytimes.com/2013/04/05/business/global/japan-initiates-a-bold-bid-to-end-years-of-falling-prices.html?pagewanted=1&ref=world

Japan Initiates Bold Bid to End Years of Tumbling Prices

Story 2, written in September 2002:
http://www.fas.org/irp/crs/RL31617.pdf

Report for Congress
Received through the CRS Web

The Economic Effects of 9/11:
A Retrospective Assessment

 
Highlights of story 1:
Japan Initiates Bold Bid to End Years of Tumbling Prices
April 4, 2013

TOKYO — Haruhiko Kuroda, the new governor of the Bank of Japan, delivered on his promise to drastically change Japan’s economic policy to end a long, debilitating era of deflation.

The central bank said it had inflated the economy by aggressively buying longer-term bonds and doubling its government bond holdings in two years. The bank said it would aim to create a robust 2 percent inflation rate “at the earliest possible time.”

Some economists were cautious, though. The central bank’s giant purchases of government debt could eventually be seen by investors as enabling runaway public spending, quashing confidence that Japan would ever pare its already sky-high public debt. They also said it could also drive up long-term interest rates.

Others argue that rising prices, once stoked, can be hard to control, a fear related to memories of Japan’s bubble economy of the 1980s and the subsequent painful collapse.

In a statement detailing the new measures, the bank said it would buy longer-term government bonds, lengthening the average maturity of its holdings to seven years from three years and expanding Japan’s monetary base to 270 trillion yen by March 2015.

Under that plan, the bank will buy about 7 trillion yen in bonds each month, equivalent to over 1 percent of its gross domestic product, which is almost twice the bond purchases of the United States Federal Reserve Bank.

 
Highlights of story 2:
The Economic Effects of 9/11:
A Retrospective Assessment
September 27, 2002

International Capital Flows and the Dollar
While international trade plays an important role in the U.S. economy, it is not the only role played by international forces. A characteristic of the economic
expansions of the 1980s and 1990s was the large net inflow of foreign capital to the United States. During the late 1990s, this net inflow furnished between one-third and one-half of the U.S. net saving. In times of international crisis and uncertainty, foreign capital has often sought refuge in the United States. This time, however, the United States is the battle ground. Even though there was no panic selling of dollar-denominated assets after 9/11, it would appear that there was a short run decline in the net purchase of U.S. assets by foreigners. This was clearly over by mid-October.
However, this may be due to timely action of the Federal Reserve, which restored confidence in the smooth functioning of the nation’s payments system, action supporting the dollar in international financial markets by the Bank of Japan and the European Central Bank, among others, and interest rate cuts by key central banks in support of similar cuts by the Federal Reserve. [[aprxmtly. page] CRS-3]

Prior to 9/11, the slowdown in the U.S. economy already was being transmitted to other economies through trade and investment channels, particularly through a sharp decline in U.S. imports of high-technology components from Asian suppliers.
The aftershocks of the terrorist attacks were felt immediately in foreign equity markets, in tourism and travel, in consumer attitudes, and in temporary capital flight from the United States. Central banking authorities worldwide reacted by injecting liquidity into their financial systems.
Still, the downturn in business conditions became more generalized, and the world has had to rely on China and the United States – the only two major economies to register significant growth – to pull itself out of the recession. By and large, however, the sharp immediate drop in stock values, airline travel, and general consumer confidence was temporary. After a few months, most began to turn upward again, but what recovery has occurred has been fragile and difficult to sustain.
The recession, along with increased government spending for the antiterror campaign, contributed to rising federal debt in the United States and other nations.
Combined with a weakening dollar that pushed up the exchange value of the yen, Euro, Chinese renminbi, and other currencies, central governments intervened to bolster the value of the dollar by purchasing more U.S. debt instruments. A side effect of this activity is that, despite Japan’s weak economy, its holdings of U.S. Treasury securities continue to rise ($321.0 billion by May 2002). China also has become a major foreign holder ($80.9 billion) of U.S. debt. [[apr. page] CRS-19]
 
The Bank of Japan intervened in foreign currency markets on five instances between September 11 and September 27 by buying dollars to stop the rise in the value of the yen. These efforts were undermined partially by
Japanese firms that were repatriating some U.S. holdings to shore up their
cash balances to meet financial reporting deadlines on September 30.
37[suprscrpt.]  [[page] CRS-25]
 
Since 9/11, in particular, stock market values in the United Kingdom, Germany, France, Canada, and Japan have tended to move in tandem with those in the United States (as measured by the S&P 500). [[apr. page] CRS-19]

Looking to the Future
In the aftermath of 9/11, it appears that the international economy has currently become a one-locomotive world. Only United States – with some help from China – has had the size and strength to provide the economic stimulus to world economies necessary to help pull them out of the global recession. Japan and Western Europe remained coupled to the U.S. business cycle and have remained dependent on exports for economic recovery rather than relying upon domestic fiscal and monetary policies. The limited recovery in their domestic sectors has been too weak and unsteady to counter the global downturn. For U.S. policymakers, therefore, actions to restore health to the American economy also may determine global economic conditions. In this sense, foreign and domestic economic interests coincide. [[apr. page] CRS-22]

Headline is Pushed to Include the Word 'Issues': Deceased Ambassador Stevens, Correlations; and Missile Strikes

Any time an Ambassador of the United States is killed as a rule, it puts Americans to the defense.  As an isolated incident, if Americans do not know anything about the personal life of the person, then there is a principal, just as if a piece of land was attacked, or an embassy {or consulate} with no one in it.

Pictures, of what appears to be moments just before or just after his death, show in the science that deals with physio-biological effects of certain thematic topics that might have been at thresholds of what was occurring to the mind --whether they were carried out in the practical level or not is another story-- might not be ones that are directly approved of by the people there, indirectly.

Whether he did, was, is, had a history of the behaviors, rumors circulating, so on so forth, that is not something that straight minded authors feel inclined to investigate into.

Rounding up, incidents such as what occurred surrounding Ambassador Stevens, puts a strain on two camps.

The level of security [i.e. embassy or consulate].  Was it lax? Or was it strong enough according to some technicalities, then deemed lax after the fact?  The bottom line is, whatever the level was, it did not result in blockading the attack.

All the way over in Washington DC, pointing the blame to senior level officials in business attire, may also have contradictions of laws that were set in place as long ago as the Founding Fathers, for a more extensive and complex set of reasons.

Positive directive in intention/ camp 1: is protective of the Embassy/consulate staff and the security team, comprised of positions that are close to heart

Positive directive in intention/ camp 2: protective of all senior level officials and ambassadors, embassy and consulate staff, notably those that are credited by some to be at the high echelons regarding the conditions of embassies

When camp 1 is so fueled about that aspect, it can have disagreements with camp 2.

Altogether, the abovementioned paragraphs hit upon issue 1.

Issue 2, without going into detail, as it is still early in the moments after the missile strikes that just occurred in Palestine to make a more comprehensive statement that is based on all the facts involved, is, how justified was the method of a missile strike, and how far it is or is not adherent to international rules of treatment of one another?

In the previous post, it was stated that missile were being fired as a generality, the type of strikes a separate subject, as what was going in the area, meaning Syria-Turkey border, Palestine, and Israel occupied areas.

Issue 3, is the 'name game', reference events like those surrounding the 'Innocence' film earlier this year.  The writing you are reading right now is a blog, not a report being officially submitted that requires investigations for word for word fact finding.  The name game is played by so many deviant people for many things.  Blog writers are going to make the effort to set the or their point, and little gambit strategies of perpetrators in the wrong doing does not detract from it.


Long term strategies looking back, -- ; short term actions ???

11-11-11: This U.S. Blog Wants to Devote Commemoration of this Day Talking about the U.S., We are Forced to Take On Examination of Some European Countries' 'Economic Crisis'; What We can Learn to Maintain Ourselves; Bring up Italy

Now Italy, even Italy, is talking about an economic crisis.  Is there such a thing?  We must be in a world where any rule can be broken.  Isn't Italy the place where Rome is?

Article to be continued.