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Japan planning to give IMF $50 bil to ease Europe's debt crisis

34 Comments

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34 Comments
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How about using that money for welfare in Japan. A lot of people are struggling in Japan at the moment. The government is always going on how money is short, yet they want to give billions to Europe. Let Europe fix their own problems.

8 ( +8 / -0 )

Oh, that's why they want to raise my taxes?

2 ( +2 / -0 )

How about using that money for welfare in Japan.

@VicMOsaka

It is commendable that Japan is making a move to help the EU dig out of its debt crisis, but of course it is a mistake to think that Japan's motives are purely altruistic. In today's world all of our economies are linked. We need to help one another out in time of (fiscal) crisis.

Japan has a major vested interest in a healthy EU economy. A major portion of Japan's trade deficit last year stemmed from decreased exports to Europe. By helping the EU out of its debt woes Japan is helping itself potentially turn that deficit into a surplus. This is a positive and prudent move on Japan's part.

-1 ( +1 / -2 )

Well said. That money could be much better - and more appropriately - spent helping support the victims of the earthquake & tsunami!

1 ( +2 / -1 )

Japan LOVES spending money they don't have..

3 ( +3 / -0 )

Great..all these billions that seem to be available to Japan to throw at IMF bailouts, currency interventions etc..on an almost monthly basis recently obviously mean that J-govt has plenty of dough available when it wants it. ( even as it cries poor and says it can,t afford to give free health checks to Fukushima kids, pay unemployment benefits to people in tsunami affected areas etc....) So Mr Noda take your sales tax increase and shove it...Cut all your damn bureaucratic waste , use all the surplus funds in all the categorized "special" accounts and redirect govt. money to help Japan,s domestic situation first! Then,,,use surplus funds for overseas pet projects and adventures. Piltdown Man - you do have a point but "Japan helping itself " by funding Europe just means J-Govt helping Japanese export giants and their balance sheets first and foremost - what peeves me is that the little people here are always at the bottom of governments priority list.....Rant over...:)

3 ( +3 / -0 )

How about helping your own country out first Japan,,Welfare, introduce a reasonable baby bonus to replace this massive aging populated country, put the money into the future of your own country, and people fix up the outdated education system, just a few problems that need more attention than overseas....

1 ( +1 / -0 )

Japan should not give IMF that money. I wonder Japan has extra money for that but surely a lot of debts.

0 ( +1 / -1 )

I say Japan gives the IMF $1 Trillion... why not... no one in Japan will complain and it may finally help weaken the yen.

0 ( +1 / -1 )

So we can help Europe but those in Japan have to suffer a tax increase because Japan can't help itself?? Unreal. If I was a voter I would be howling in the street. Instead, I'll sit here, shake my head and seethe.

0 ( +1 / -1 )

Hey how about finishing all of thse half completed roads in Japan. Better yet rebuild the houses of those who lost their home in 311? No cost to them, better than propping up the failed EU.

-3 ( +1 / -4 )

Should use that 50 billion to pay down Japan's debt.

0 ( +1 / -1 )

Piltdown man How about using that money for welfare in Japan. @VicMOsaka It is commendable that Japan is making a move to help the EU dig out of its debt crisis, but of course it is a mistake to think that Japan's motives are purely altruistic. In today's world all of our economies are linked. We need to help one another out in time of (fiscal) crisis.

What about Japan's crisis and recent disasters ? Perhaps it is Japan that needs a bail out. Might as well say that Europe should give money to Japan so as to benefit Europe. At least the crisis in Japan is not from their own doing.

-2 ( +0 / -2 )

marcelitoFeb. 24, 2012 - 09:18AM JST Great..all these billions that seem to be available to Japan to throw at IMF bailouts, etc-------

You are so right !

-1 ( +0 / -1 )

This should be a decision for the people of Japan (it is our money after all) it should not be the decision of the useless and selfish morons in government. How about a referendum?

0 ( +2 / -2 )

Raising taxes "for the welfare of the elderly" is one big smoke screen.

1 ( +1 / -0 )

I just love how posters are looking at this situation.

First and foremost, if Japan prints money for internal use, then the fix on the economy is temporary, and a false fix ... several years ago, Japan tried this tactic by doling out about 12,000 yen per person. And again several times since last year by injecting money into the local economy.

But if the money made is given outside Japan, the effect would be more yen in the international money market, lowering the international value per unit.

0 ( +1 / -1 )

The headline is misleading ; it is not so much a gift of 50B yen just to help Europe out, it is 50B yen to try and avert further European crisis in order to protect Japanese business interests. The consequences of such crisis could cost the Japanese economy a lot more than 50B yen. Having said that, i wouldnt mind a just a tiny chunk of that to help avert my own economic crisis.

3 ( +4 / -1 )

Some of these posts are odd. I read things like

At least the crisis in Japan is not from their own doing.

and wonder who was stupid enough to build a nuclear plant without sufficient safety measures in a tsunami and earthquake endangered region. Or the Japanese corporate culture eating away on its own basis. Or the ridiculous pricing in the Japanese domestic market. Wasteful spending. Impotent bureaucrats. Let's blame it all on Europe...

The only way for Japan to keep the rise of the Yen in check is to stabilise the Euro (and the Dollar). This is not only for trade between the Eurozone and Japan - Japan simply loses its capability to concur with Europe on the global market (which is the main source for a positive trade balance). The Euro is too low, the Yen is too high. While German exports soar to the highest level ever in the middle of the Eurozone crisis, Japanese exports break down. It is far too cheap (though very popular) to blame Fukushima and the reduction of reliance on nuclear power for the Japanese trade deficit.

Then keep in mind that Japan has ridiculously small interest rates when borrowing from its citizens. When it lends its money someone else, the interest rates will certainly higher. Therefore, Japan gains money by borrowing from its citizens and lending to someone else. Someone like the IMF. Or someone like the ESF. Or the USA. I wouldn't lend to Greece, though, since that might turn out unprofitable in the case of a likely default. Economics at its most basic level.

0 ( +2 / -2 )

And now you know why they are raising consumer taxes... like I mentioned before, it's to help maintain the balance of global economies.

0 ( +2 / -2 )

Forget about giving all that to the EU & the IMF, they created all those problems. There shouldn't be a Euro in the first place, those currencies should have never changed. Instead, put that money towards Japan's debt and towards green energy projects. There's just no way the Mandarins in Tokyo will ever really care about the real issues in Japan.

-1 ( +0 / -1 )

This should be a decision for the people of Japan (it is our money after all) it should not be the decision of the useless and selfish morons in government. How about a referendum?

Never happen because they know what the answer would be. And I certainly wouldnt want to be the one counting the millions of ballot papers people will have wiped their butts with before popping it in the box!

-2 ( +0 / -2 )

Because the IMF have been doing such a great job up to now......

-1 ( +0 / -1 )

The EU is a sinking ship. It isn't going down by the head like the Titanic, but rather by the stern(Greece comes to mind). She's made of iron, she WILL sink. All this printing of unbacked paper currencies and monumental socialist programs, and lest we forget the crony capitalists in charge, are the real causes of this fine global monetary mess. Hope everyone has a lifeboat and flotation jacket!

0 ( +0 / -0 )

Europe = Titanic, its sinking and if japan pours our tax money into it it's also down the drain. Cut the euro loose and lets all get on with it.

Save the Euro ??? You're dreaming.

0 ( +0 / -0 )

Better to help the global economy than have instability and war!!! :(

1 ( +2 / -1 )

Europe is the spiritual home of socialism so that 50 billion is money well spent. It will get paid back.

0 ( +0 / -0 )

All this printing of unbacked paper currencies and monumental socialist programs

This doesn't happen in Europe as it happens in the US or in Japan, since the ECB is not under state control in contrast to the Federal Reserve in the US or the BOJ. This, in fact, is one of the sources of the European problem. Inflation cannot be used to cover cost and debt as efficiently in Europe as in many other countries. Exploding costs in the US or Japan are solved with the money press, which is not possible in the same way in Europe since the ECB is in prinicple neutral.

The welfare states in Europe are oversized - but this is not something where Europe in general is worse than the rest of the world. Take health insurance. Why does a privatised health insurance sector in the US cost more and offer less to the general population than the "socialist" European health insurance systems? Look around without a bias and you will see that the "socialist" countries in Europe do not necessarily do worse than the "puritan capitalist" countries on the British isles or in North America.

Even if Greece defaults that doesn't necessarily mean the end of the Euro or Europe. However, the shock-waves of such an event might hit the Japanese economy harder than the tsunami last year. JGov lending money to the IMF is pure self-defense.

2 ( +2 / -0 )

Good to see people like Johannes Weber and Pitdown Man speaking some sense. This is pretty simple stuff.

1 ( +2 / -1 )

WHAT !!!! Geezzzzz Japan is in deep debt and in shrinking economy. There must be something hidden here with this gesture of Japan.

0 ( +0 / -0 )

That gift from Japan would be more money thrown down the drain. Europe is in serious trouble economically-wise. Greece is getting a bundle of money, but it will need much more down the road, in bailout after bailout. It would be better to cut Greece off from the European Union and let it go it alone ... which it would probably do successfully.

The same could be said for the other EU countries in trouble. As a matter of fact, wonder what would happen if the entire EU setup would go back to the Europe of old, when each individual country had its own currency?

When the EU was set up, everyone knew there were many weak spots in certain countries that would have to receive much money to bring them up to par with the richer areas. And at that time questions were asked if such doings were worthwhile, and even possible.

Perhaps they should break up the European Union and try it again some other time when all the economies get stronger.

By then, perhaps, Japan will be stronger, too, so that it can afford to pour some of its hard-earned money into a Europe that can use it wisely.

0 ( +0 / -0 )

Mr Weber, you do make some good points, but are a bit incorrect in some as well. The Federal Reserve is in fact not state controlled, but a private corporation, which is part of the problem. Via QE1 & 2 and the more recent Currency Swap provision from the FED, the ECB has indirectly inflated the Euro albeit in a way that more resembles laundering. By "cover cost and debt efficiently", you actually mean "kick the can", don't you? The actual cost is eventually pressed upon the proletariat. Regarding health care costs in USA, which is far from "PuritanCapitalist", the costs have skyrocketed and actual coverage plummeted ever since the Great Society programs started under LBJ. As the social programs have expanded, so have the costs, but the availability has fallen due to the myriad mandates. If it works in Europe, that's nice. My parents medical practice was evicerated by the onerous mandates, policies, costs and bureaucratic red-tape. So they retired and expatriated before becoming paupers of the state. Japan relies heavily on exports, as you know, but the sun is beginning to set on that horizon. So BOJ is trying to shore up its cash cow, but when the Euro implodes, that cow will run dry. Mardi Gras is over, and Lent has begun.

0 ( +0 / -0 )

GIVING?

As in "gift"?

You REALLY must be joking!

0 ( +0 / -0 )

Johannes WeberFeb. 24, 2012 - 11:01AM JST Some of these posts are odd. I read things like At least the crisis in Japan is not from their own doing. and wonder who was stupid enough to build a nuclear plant without sufficient safety measures in a tsunami and earthquake endangered region.

Are you saying that Japan caused the Tsunami? I knew someone would say this. Might as well say who is stupid enough to build towns in tornado areas, and cities like New Orleans etc. Who would have dreamed that there would be such an earthquake in NZ Christcurch. Oh, I know, they were stupid. All the people in the Indonesian Tsunami must have been stupid living near the sea. Are you aware of just how many nuclear power stations there are in the world? Any natural disaster could happen to any one of them.

-1 ( +0 / -1 )

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