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Finance minister to detail yen threat at G7 meeting

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Good luck with that, Mr. uh, what's your name again..?

The only thing worse than hearing a broken record is having a cheap glass of whine at the table!

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that the strength of the unit could undermine its efforts to recover from the March 11 disasters, the impact of which pushed it into recession.

LOL ! Never knew Tohoku was "epicenter" of Japan's economy. Fact of the matter is Japan has been in recession for two decades whereas the tsunami disaster happened just 6 months ago. Doubt if Jun Azumi will get desired results from G7 members.

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Unfortunately, at this point in time it's every country for themselves. No exporting countries want a strong currency.

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Well, this guy and I have been on the same page. Amazing!!

1)Japan needs to take an initiative seeking China to go to a currency floating system again, again and again. China is exporting unemployment and recession to the world. I do not know if G20 are willing to go with G7 agenda, but we need to address this issue again. If China is not willing, we may have to impose a trade tariff against CHINESE products made in China. I am sure China will fight back hard, but so be it.

2)Lower the corporate tax is a great idea. This had to be done a long time ago. It is over due. Japanese corporate tax is the highest in the world. Let's lower that first, so that some of these manufacturing jobs are coming back to Japan.

3)I would add something he did not mention here. Implement a special tax incentive for these corporations that are coming back to Japan and start hiring full time and long time workers in addition to lowering corporate tax from 40%. It can be done.

I am so happy for Japanese workers. All Japan needs now is a fine tuning by BOJ.

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@ Global watcher, your first suggestion would set off a trade war with China, which would not be a good idea for recovery. I am amazed Mr Ozumi? has already got business cards printed!

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@Asagao, all of us including US, Japan, China, Korea, Germany, France, UK, Swizerland and many more have been in trade war. What do you think? Japan had to deal with the Plaza Accord and went to a currency floating system. In addition to that, Japan had to deal with the US trade tariff "The Super 360". Many Japanese cars were smashed by hammers by detroit congressmens...... Oh...I would like to tell you more.and I had many sleepless nights in business decision makings.

Japan never had an easy break, but still survived. I am very confident Japan will pull herself out from this, I assure you.

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Taiwan has seen the situation very clearly nds has set up an economic zone specifically for japanese companies, the tax rate in taiwan is 17% in japan its 40%, also by trading out of taiwan they will get easier access to china's huge market.

Unless the J govt wake up japan will just be a industrial and economic husk.

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You go, ExportExpert!! Exactly!!

Japan needs to wake up to a reality realizing Japan government is competing against other countries corporate tax rate. Business moves where the tax rate is the lowest. I am not here to argue if that is right or just, but that's how the business nature is.

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Japan should lower the rate to 30% from 40%

Now people might say its crazy to do that since the debt is huge...but keep in mind that it might lead to a RISE in tax receipts. If the companies receive more income it is very possible they will contribute more in taxes even with a 30% rate..not to mention more income tax and sales tax on more workers at home. Also Japan needs to do some very strong action against the yen like the SWISS have done...and at least bring the exchange rate to 85 yen per dollar. While that is still strong that is generally the rate companies cite as where they need it to be to be profitably...and also with a 10% tax reduction 85 is fine.

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GlobalWatcher:

1)Japan needs to take an initiative seeking China to go to a currency floating system again, again and again. China is exporting unemployment and recession to the world. I do not know if G20 are willing to go with G7 agenda, but we need to address this issue again. If China is not willing, we may have to impose a trade tariff against CHINESE products made in China. I am sure China will fight back hard, but so be it.

This is business. Companies want to make profit. Nobody forces anyone to manufacture goods in China. You can say that the market does but we are the market. You can choose between cheap and low quality or slightly more expensive price for you and lower profits for the companies.

2)Lower the corporate tax is a great idea. This had to be done a long time ago. It is over due. Japanese corporate tax is the highest in the world. Let's lower that first, so that some of these manufacturing jobs are coming back to Japan.

Well, no. Because if you don't pay the investors their dividends, they will likely take their capital away, threatening the company itself. The money goes to the stockholders first.

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Japan has nothing to export except Radiation and Nuclear

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Japan has lots to export Believe ME !

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This is business. Companies want to make profit. Nobody forces anyone to manufacture goods in China. You can say that the market does but we are the market. You can choose between cheap and low quality or slightly more expensive price for you and lower profits for the companies.

TumbleDry, I went and research this article in Forbes.com This is one of unfair business practices of China along with the currency issue. China has to adopt a currency floating system. This issue has been addressed to China again, again by G7 and G20 members, and nothing has been done by Beijin.

To Toyota, If you want to manufacture products with rare earths, you will almost have to move to China.

That is a master plan of Beijin.. If we can get Japanese advanced manufacturing technology of magnetic materials in return, China welcomes Japanese companies shifting their downstream manufacturing of application products,, said Wang Guozhen, quoted on an official Chinese government website in a report on the important Showa Denko deal. The former vice chairman of the China Nonferrous Metals Engineering and Design Institute has clearly suggested that Beijing is using its control over rare earths to force companies to move their manufacturing to China.

Such gouging is a clear violation of Chinese as a member of the World Trade Organization

Well, no. Because if you don't pay the investors their dividends, they will likely take their capital away, threatening the company itself. The money goes to the stockholders first.

Actually when the corporate tax is lowered, then the shareholders may get more returns on investment.

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I just want to warn China this, more and more pressure will be given to China as the world is fighting for economic survival that include Europe, US and Asian countries. iIf you are catching up with all economic unrest in global economy in recent months.

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China needs a lesson in etiquette and social interaction with others, it behaves like a dysfunctional little brat in 5th grade.

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250 Yen to the Dollar would bring in a lot of tourists.

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1985 G7 "Plaza Accord" Japan Lost Decade + recession China gov is not stupid enough to forget this lesson. You guys may want to check this out "China Says No' toPlaza Accord' Pressure (2003)" "Farrell: US, China Won't Sign 'Plaza Accord' (2010)"

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swordfish2502, LOL, someday China will pay for all of this. And the world will say I told you so.

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With food and fuel prices rising, Chinese inflation hit a 3 yr high of 6.5% in July, prompting some monetary tightening moves from the People's Bank of China, but many China-based economists believe the July level marked a high, and that the August result will show some easing.

Inflation, Inflation and Inflation in China. There will be a social unrest in China unless Yuan goes to a floating system.

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Japan has only one thing can export

It s cu li handicape ...

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“I will clearly tell them that we have strong concerns over excessive rises in the yen and also have great interest in any speculative movement”

G6's response :

Excuse me Mr. Nod.. sorry Mr. Jun Azumi, strong yen is indeed a concern but we are indeed quite tied up with our own set of debt issues and our fight to share the oil & gas interest in Libya..Oh right , could we talk about this next June if you still happen to be FM of Japan... cheers ( Champagne for all !! -- something celebrate from the scramble of oil in Libya )

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Japan has nothing to export except Radiation and NuclearJapan has only one thing can export

It s cu li handicape

lisann89, as a matter of fact, we can send million tons of it at free of charge to your backyard. No contract necessary. Just let us know when we can do this at your convenience. Best

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Japan does not do enough themsselves to curbe the strong YEN. Thy must stop and talk and activily flood YEN in the markets with negative rates. The central bank is not even using their moneyreserves to control thir YEN

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