The Garner Ted Armstrong Evangelistic Association

Bankruptcy in Japan and the Rise of Militarism
By Michael Burkert

While everyone is watching the apparent collapse of our American and Western European economies, there is little attention being paid to Asia. While we hear from time to time about China being encouraged to buy more U.S. debt, there has been very little heard concerning Japan and her once skyrocketing economy. As much trouble as we are in here at home, the Japanese are in deeper than you know. They are virtually BANKRUPT and close to defaulting on their foreign debt.

We usually don’t even think about Japan having a trade deficit or in any sort of debt, but they do. Of the major industrial economies in the world, Japan’s government is the most indebted! You read that correctly.

Japan has been in a recession for nearly 20 years. Attempting their own “bailout” when their banking system was about to default, the Japanese government attempted to prop up the nation’s private banks with trillions and trillions of yen in a series of bailout programs all designed and intended to “stimulate” the Japanese economy. It hasn’t worked. In fact, Japan’s government is in debt in excess of U.S. $7.8 trillion.

Economists use a “debt to Gross Domestic Product or GDP” ratio to compare the indebtedness of the leading economic powers in the world. As an example, Great Britain has a government debt-to-GDP ratio of 48%. The United States has a government debt-to-GDP ratio of 75%. In Japan, that government debt-to-GDP ratio is a whopping 187%! The Japanese economy is in a shambles and sinking deeper and deeper every day. With no immigration and a near geriatric population, Japan will never be able to repay her debt.

Japanese auto makers, Nissan and Toyota are losing sales as the world’s demand for new automobiles continues to shrink. Toyota recently posted their first loss EVER. Not even the collapse of Japan at the end of World War II imposed losses on Toyota, a major manufacturer of goods and equipment used by the Japanese military.

Ironically, the Japanese yen is currently the most popular currency in the world. It’s thought to be the only “safe haven” and in 2008, was the best performing currency. The yen rose 19% against the U.S. dollar, 33% against the Canadian dollar, and 40% against the British pound. However, as with any flat currency, the yen is subject to market forces and has now sunk 12% over all in recent trading trends.

The Germans hold nearly three trillion dollars worth of Japanese government debt. There is no way that debt will be repaid and the Germans know it. Already there is panic in the German banking system over the coming bankruptcy of Japan.

Garner Ted Armstrong warned of worldwide financial collapse and it’s upon us now. He also warned us that collapsing governments create a power void that is quickly filled by extremists bent on righting the wrongs of the previous government, often with violent and tragic results. I urge each of you to read his comments published at this website in 2002. His commentary, IS GLOBAL ECONOMIC MELTDOWN UNDERWAY, is as valid today as it was when he wrote it.

Mr. Armstrong wrote, “Japan is frantically trying to save its entire banking system, which had its own chicanery and scandals. Japan is now awash in a sea of bad debt, struggling to make reforms after 10 years of falling prices and recession. Will a military government soon take over in Japan?"

What are the odds that Japan will once again become a militaristic nation; one that reveres the emperor, bows to authority and honors a strong army and navy? Sadly, the odds are good for this very event to happen and happen quickly right before our eyes.

Japan continues to have many enemies. Many nations once occupied by Japanese forces have NEVER forgotten the brutal ways in which their peoples were treated by the invading Japanese forces. In the West, “political correctness” has seen to it that most Japanese atrocities committed against British, Australian, New Zealand, and American personnel were warranted and justified, due to the rampant anti-Japanese “racism” in the Commonweath nations and the United States.

Wartime brutality and atrocities directed against the Chinese and other Asian peoples are glossed over and conveniently ignored by most in our Western partisan and liberal media. However the Chinese have not forgotten. The Koreans, Vietnamese, and Burmese have not forgotten how barbaric, occupying Japanese troops behaved. Accordingly, there is little sympathy for Japan today in most of Asia. Japan sees herself in a “go-it-alone” situation. Today in Japan, numerous radical political groups want to seize power and rule. Most are extreme national movements that revere the emperor, swear allegiance to everything that smacks of Japanese royalty and absolutely are willing to “die for the emperor and the Japanese nation!” They want a large, modern, and strong army. They demand a new Imperial Navy that can rival any navy in the world. They believe that they have an economic plan that will put Japanese back to work, create jobs in the armaments industry and return Japan once again to a nation feared and respected.

Japanese militarism is on the rise and the collapse of the democratic government in Tokyo may well usher in a new prime minister selected from the military high command. The militarist groups have received little media coverage over the years and in the West were mostly thought of as kooks.

Now, however, the aggressive nationalism they espouse is becoming mainstream. A resurgent nationalism among some mainstream politicians and North Korea’s recent nuclear testing have meant right-wing groups are now being listened to at the highest levels. Many of the policies they promote are now on the government’s agenda.

Traditionally sensitive topics that have recently become open to political and public discourse, such as stripping the constitution of its pacifist components, developing nuclear weapons, and promoting patriotism in schools, are the very issues right-wing extremists have been pushing for decades.

They know that Japan was able to rapidly expand her economy and bring about prosperity during the militaristic era of earlier times. They hope to repeat what their grandfathers accomplished and are likely to do so if Tokyo defaults on her huge debt and the government collapses.

Already, Japanese militarists are responsible for several riots, sabotage against police stations and other government installations as well as political assassinations. Don’t be surprised if political assassinations by Japanese militarists eventually paralyze the elected government and cause chaos and terror in Tokyo and other Japanese cities.

Naturally, many of the surrounding Asian nations are nervously eyeing the emerging nationalism in Japan.

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Further reading:
Our Commentary
Will Japan be the Next Awakening "Giant"? –by Michael Burkert 
New Arms Race In Asia?  –by Garner Ted Armstrong
Japan - Soon To Become a Nuclear Superpower?  by Garner Ted Armstrong
China – Rising Asian Powerhouse  –by Chris Cumming  

Quotes by Garner Ted Armstrong:
"How long before Japan becomes nuclear armed, with nuclear-powered aircraft carriers and a much larger military?"source

"Will there evolve yet another future “axis” of nations – Europe cooperating with Japan against the US and Britain? Will the Beast, together with Japan, descend upon the Mideast to insure no interruption in energy supplies?" source
Japan Balance of trade Recession Bailout Debt to GDP
Japanese military Currency exchange Rates Japan Military Strength video: Japan Military Strength video: Japan Military 2

Left: Japanese military
Right: The ensign of the Imperial Japanese Navy and Japan Maritime Self-Defense Force