Japan is complicated. I read something by a Japanese person the other day who said that the BOJ and Japanese banks are very separate from the real economy (and have been since the Lost Decade). He didn’t think that the Yen problem would ruin the economy in the way that people are worried about. I don’t know enough to say much about it, but I will say that Japan has some of the world’s oldest companies and a very deep culture around preserving generational continuity.

Not that Japan isn’t facing problems; the aging population is a serious issue, and it is getting squeezed between US pressure, regional trade relationships, energy needs, and its complex relationship with China.

I often get the impression that there are two Japans, one that deals with the US (which still has a military occupation!) and the “real” Japan. The US-facing Japan is very acquiescent, but nothing much comes of it other than pleasant words, small gestures, and whatever the BOJ and SoftBank are doing.

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