Has Tokyo Got a Massive Leadership Vacuum?

japan-tokyo-akihabaraIf you ask me, I would say yes.  Can Japan pull out of it?  Yes, but it is going to take some work.  Interesting write up from Business Insider that was originally posted via University of Pennsylvania’s Wheaton School here.

Japan is currently facing a myriad of intractable and unprecedented challenges — from a demographic crisis to border conflicts to a strong yen. The population is aging quickly. The energy sector is still reeling from the March 2011 Tohoku earthquake, tsunami and nuclear disaster. The younger generation, having grown up amid deflation and economic stagnation, is loath to take career risks. Students are studying abroad in fewer numbers. Tepid economic growth, combined with massive public sector debt and continued deficits, will likely produce a fiscal crisis in the near future — despite the fact that more than 90% of the debt is held domestically. Gross public debt to GDP now stands at nearly 250%. In spite of government efforts to raise cash by boosting the consumption tax rate, a financial implosion may come soon if interest rates ratchet up. It appears that Japan is stuck in an economic Catch-22.

Those who can figure out how to reharness the economic power of Japan will do very well economically.

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