Japan may lend support to Greece bailout plan
Joachim de Villiers and Lee Jay Walker
Modern Tokyo Times
The European debt crisis and the inability of the American government to solve the unemployment crisis and to support the dollar, means that Japan may once more buy more Eurobonds and step-in and give support to Greece. This may seem ironic, after all, Japan’s debt is enormous and is also problematic but the reserves of this nation remain strong.
Also, the strengthening yen and growing debt and unemployment crisis in America and Europe is setting off alarm bells in Japan. After all, Japan relies heavily on exports and the yen rate is creating enormous problems.
Japan also knows that the European market and American market are very important for Japanese companies and it appears that the government is thinking about the long-term. Therefore, providing a feasible plan is put on the table the government of Japan will help Greece which is in dire straits at the moment.
Greece is being forced to adopt austerity measures but many workers are increasingly disillusioned and many mass demonstrations have broken out. Also, it isn’t only about Greece because several other European nations have major problems and some banks in France have come under close scrutiny.
Jun Azumi, Finance Minister, is clearly alarmed by the rise of the yen, the weakness of the Nikkei, export related issues and other global problems which are collectively leading to mass economic instability.
Jun Azumi commented that “If there is a scheme that is based on a firm process, involves a reasonable amount of money and could provide the world and markets with a sense of security regarding a Greek bailout, I would not rule out the possibility of Japan sharing some of the burden.”
It appears that European leaders and America are at a loss about what to do and the wait and see approach and tentative moves haven’t solved anything. The more America and the European Union do little then confidence in both currencies goes further down and this means that more investors will flock to the yen.
This is a nightmare for Japan because exporters are feeling the crunch already and the longevity of the crisis because of the ineptness of both America and the European Union is clear for all to see.
The British government is trying to decrease spending and focus on restoring economic order. Therefore, while economic measures in the United Kingdom may not be popular, at least the methodology is better than President Obama’s logic. This applies to more borrowing and racking up a huge debt burden for future generations.
Japan’s economic system is far from perfect but it somehow keeps on ticking and the reserves of the nation are a blessing. However, while America sits on its feet and does little to ease global pressure, the government of Japan is willing to help the European Union providing plans have a firm foundation.