Via calculated risk, Asian countries are reducing their subsidies for oil in an effort to lower demand. (more)
It appears the Reserve Bank will up interest rates in a couple of weeks out of concern that inflation is becoming too high. One of the statements from the Prime Minister is that the core inflation is still between two and three percent. The problem with core inflation is that it is an inflation reading with all the stuff that is inflating taken out. Also known as inflation ex-inflation. (more)
Futures trading came out of Edo (Tokyo) at the end of the Tokugawa Shogunate. It was actually a response to over-taxation, and the daimyo's, in order to generate revenue, forward sold rice at a fixed price to the markets.
(more)
The Five Articles Oath was the basis for political, social and economic modernisation of Japan. Prior to the Five Articles, Japan had been ruled by the Tokugawa Shogunate which repudiated technological change, and had been largely, though not perfectly, isolationist. (more)
It's been a bit lost in the swarm of corruption scandals in the last week, but we recently made a security agreement with Japan. It seems to me it is a mature and strategic policy move by the government. It's compatible both with the doctrine of regional engagement according to national interest, and the Great and Powerful Friend doctrine that has long led Australian foreign policy. We are no fans of the latter at SSR, but it's to the Howard government's credit that their fondness for US power did not blind them to more lateral opportunities.
(more)
Koizumi won another election
, this time achieving a majority with his Liberal Democratic party. It was previously a minority government.
(more)
