In Japan we have had an historic change of Government.
TOKYO (Reuters) - Japan's next leader Yukio Hatoyama, fresh from a historic election win, faced the task on Monday of forming a government to tackle challenges such as reviving the economy and steering a new course with close ally Washington.In economics, the new Government is likely to be more Keynesian
Sunday's victory by the Democratic Party of Japan (DPJ) ends a half-century of almost unbroken rule by the Liberal Democratic Party (LDP) and breaks a deadlock in parliament, ushering in a government that has promised to focus spending on consumers, cut wasteful budget outlays and reduce the power of bureaucrats.
Analysts say the decade-old Democrats' spending plans might give a short-term lift to the economy, just now emerging from recession, but worry that its programs will boost a public debt already equal to about 170 percent of GDP.In Foreign Policy the new Government will likely steer a course more independent of the US.
The Democrats want to forge a diplomatic stance more independent of the United States, raising fears about possible friction in the alliance. They have also vowed to improve ties with Asian neighbors, often frayed by bitter wartime memories.Maybe VP Biden was correct after all. No, just a lucky guess based on having lived about six decades.
"(Hatoyama) is basically articulating the idea that the U.S.-led Pax Americana era has come to an end," said Sheila Smith at the Council on Foreign Relations in New York.
Regards — Cliff