Waking Ultraman

by Chris Zappone

ultraman

(Ultraman, left, faces the other guy)

Japan is going to have to go for radical in reviving its once heroic economy. If Shinzo Abe is successful, it could alter a lot of long-held assumptions about Japanese assets in financial markets. Some well-known investment banks today are also predicting stocks in Japan will rally by 20 % as the central bank works hand-in-glove with the government to bring the economy back to life in 2013. But as we know, economics and politics are linked. If Abe and the Liberal Democratic Party, along with the New Komeito party, have any success, the Japanese sense of vulnerability towards China may diminish and some measure of confidence can creep back into Japan’s foreign policy. If the experiment in reviving Japan fails, you can almost bet on more trouble over the islands, even if China’s most recent stunts prove only a temporary campaign.