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    Japan Faces The Risk Of Normalization Of Trade Deficit

    2011/11/28 12:41:00 13

    Japan'S Trade Deficit Normalizing Risks

    Japan's economy in November 21st

    industry

    The provincial government submitted a report on the risks faced by the Japanese economy to the National Strategy Conference of Japan.

    The report points out that if the yen continues to operate at a super high level, it will accelerate the industry.

    Hollowing out

    Around 2015.

    trade deficit

    Fear will normalize, and warned that in 2021, there may be no way to digest the national debt through the domestic market, so we must intensify the outward promotion of Japan.


    According to the Ministry of production and statistics, if we keep us $1 to 80 yen, we may see the whole product, including the raw material industry, which is the economic base of Japan.

    Supply chain

    The "hollowing out" of overseas pfers.

    In Japan, the speed of developing new industries can not keep up, only the auto industry will reduce the number of employment of about 600 thousand people.


    In addition, if nuclear power plants fail to generate electricity as early as possible, the increase in fuel imports for thermal power will probably fall into the trade deficit in 2012. In 2015, the current account receipts and expenditures, including income and expenditure, will also turn to deficit, which will lead to long-term interest rates rising (the price of treasury bonds plummeted) and inflation and the depreciation of the Japanese yen. Therefore, the collapse of the assets value of the annuity fund, the increase in unemployment and the rise in the interest rate of residential loans will seriously affect the national life.


    To this end, the Japanese Ministry of economic and trade put forward the current countermeasures should be to reduce the legal entity tax rate, actively promote the economic cooperation agreement (TPP) and other economic agreements, social security and tax system reform, energy policy and so on to prevent cavitation, inflation out of control and correction of the yen rise.

    In the medium and long term, we should support the development of the next generation of automobiles and high performance raw materials.

    added value

    The growth of the field, mining domestic demand such as health care industry.


    In addition, Japan is also faced with issues such as how to recover from earthquake, nuclear leakage, economic growth and financial integrity.


     
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