The central banking model in which Japan leads the way with the Bank of Japan (BoJ) recently dropping the interest rate to negative rates (it means you will pay the bank where you deposit your money a fee to keep your money) have always been behind war and militarization as state policy. Virtually all money is created by debt. What is the quickest and most efficient mechanism of debt? War and militarization. Banks and powerful corporate interests both in Japan and the US take over control of the media like JP Morgan did when it bought 25 of America’s largest newspapers to prepare Americans to fight in Europe during WWI. There is no aggregate demand for production in Japan so the only option at this point is increased military arms manufacturing to keep the central banking model going. After all, how can you force 127 million people to buy shit they don’t want? How many Toyota cars does the world want when China, India (6th largest car manufacturer in the world) and Russia are manufacturing their own domestic models?
On April 1, 2014 Japan’s Prime Minister Shinzo Abe lifted (Abe didn’t “lift” anything except maybe a tea cup, the corporate LDP connections through the Keidanren did all the heavy lifting) Japan’s arms embargo which now allows Japan to export weapons and munitions although it will take time and it will happen the public is being told, with a “rigorous screening process.” Japan’s most powerful corporate business group agreed with this assessment on lifting restrictions on Japan’s military arms export restrictions and stated that arms exports would be in “Japan’s best interests as a national strategy.” The Keidanren (Japan Business Federation) also called on the government of Shinzo Abe and the LDP for “cooperation in expanding production of weapons and other defense equipment, such as fighters.”
The constant threat of China is kept in the minds of the Japanese through the media which is then used to justify Japan’s decision to increase military spending by .5 percent annually. Where does the military spending allegedly to counter each others countries between Japan and China stop? Is the military spending and anticipated military exports Japan is planning being done to increase Japan’s industrial base the last resort to maintain its failing central bank monetary policy? China’s military growth continues but is China really the threat (you will always find some think tank to construct the “threat” model) as most have been led to think?
What country is the real threat? China? Japan? Russia? The US? The UK? What is driving this militarization as the only productive capacity of these nations? Both Japan and China are heavily dependent on each other for trade so why would both countries be provoking each other unless a hidden level of diplomacy is being conducted within corporate boardrooms between both countries? My contention is the military threat is being artificially created. So goes China’s economy so goes Japan’s economy as China replaced the US as Japan’s biggest trading partner. Although Japan didn’t make this list yet, in the coming years it will probably be in this top ten list:
“Six of the top 10 largest arms importers in the 5-year period 2011–15 are in Asia and Oceania: India (14 per cent of global arms imports), China (4.7 per cent), Australia (3.6 per cent), Pakistan (3.3 per cent), Vietnam (2.9 per cent) and South Korea (2.6 per cent). Vietnam’s arms imports rose by 699 per cent. Arms imports by states in Asia and Oceania increased by 26 per cent between 2006–10 and 2011–15, with states in the region receiving 46 per cent of global imports in 2011–15. China continues to expand its military capabilities with imported and domestically produced weapons,’ said Siemon Wezeman, Senior Researcher with the SIPRI Arms and Military Expenditure Programme. ‘Neighbouring states such as India, Vietnam and Japan are also significantly strengthening their military forces.'”
According to SIPRI, global arms sales have surged 14 percent between 2006-10 and 2011–15. The US and Russia remain the top two military arms exporters. The US has a 33 percent share of total arms exports and was the top arms exporter between 2011 and 2015.
“The US exports of major arms increased by 27 per cent compared to 2006–10. Russian exports of major weapons increased by 28 per cent between 2006 and 2010 and 2011 and 2015. Russia accounted for 25 per cent of global exports in the recent 5-year period. However, in 2014 and 2015 Russian exports returned to the lower annual levels observed in 2006–10.”
The conclusion here is I don’t think Japan has the creative capacity it will take to get itself out of this economic log jam. Not when Japan’s population is shrinking and is expected to drop to 86 million people by 2060 with a current population of around 127 million. How can Japan possibly force manufacturing production with a shrinking population meaning less laborers while demand is shrinking? No wonder Japan made the big PR push to make visiting Japan easier with the image Japan portrayed as being a safe and beautiful place to visit to bring in needed revenue? In the coming years Japan will turn into a quaint tourist attraction of bamboo-decorated Zen gardens, rice fields and restaurants that serve rice balls using “female” robots.