Yes the Japanese government owe a lot of money, but they basically owe it to the people of Japan and have plenty of foreign reserves, so it is not like the nation is bankrupt. Japan is not in the same situation as Greece or Ireland or Iceland.

Companies in Japan have also invested heavily over many years in R&D and are poised to make healthy returns from such things as hybrid cars, new nuclear power technology and eco-friendly ships.

The big challenge for Japan is to cut back on government spending gradually and stop the decline in population. Small steps have been taken to address both of these issues and so I would not write off Japan just yet.

http://www.economist.com/displaystory.cfm?story_id=15867844

By the looks of it – Japan may not look all that good on paper – but does have excellent foundations such has exceptional infrastructure, strong manufacturing sector, exports and high level of household savings. Contrast that to Australia that may look better on paper but defiantly lags in terms of having a sustainable base for future growth. Let’s face it, Australia has the mining boom at the moment and that is about it. The diversity of the Japanese economy does look appealing.

I note that in recent weeks China and Europe are getting a little sick of paying for inflated iron ore prices from Australia and their concerns just being dismissed. Can we really afford to be treating our customers with such disregard?

In Australia the focus seems to be on growing the population but for what purpose exactly? Will a larger population result in a higher quality of life for people? If we are worried about a shortage of workers then why not look at ways of using technology to free up labour?

If I was running Oz I would focus on making the population more healthy and growing the nation in a manageable way, rather than just simply trying to grow for growths sake.

“I am not a big fan of major population growth anywhere really” and “Maybe Japan is actually the model other countries should be aiming for rather than trying to avoid following the same path?” -- Agreed.

Robots also have a role to play, it might not be that obvious in Australia but in Japan there are many thousands of robots at work in factories and there is a lot of research being undertake in Japan into robotics.

I am not a big fan of major population growth anywhere really and think that we should be looking at ways to live in a more sustainable (but comfortable) manner as opposed to just trying to populate so there are more consumers. I reckon if Japan can stabilize it’s population without having to resort to a large scale immigration program then they will be doing the right thing.

In any case, if we want to seriously tackle CO2 emissions, food shortages, and pollution etc then we need to think about keeping a lid on the planets population. Maybe Japan is actually the model other countries should be aiming for rather than trying to avoid following the same path?

The concern that I hear on Japan that I find difficult to argue against is the one regarding the aging population. Oz’s “solution” is to bring in migrants to effectively kick that can down the road. I’m not going to argue against that -- Because a) I don’t have an alternative that I think Aussies would like and b) I don’t believe we could hang out a “We’re Full!” banner and expect to be taken seriously anyway.

But I do think it is an issue that every nation will get to address at some time or other. When I was a schoolboy the concept of ZPG was the go. And I suspect that still has to eventually become the solution unless we are intending to just wander along aimlessly until a Malthusian solution presents itself? It’ll be interesting to watch Japan and see how it unfolds there.

As for the Japanese economy, talked about a mixed bag! There are certainly some serious economic issues to be dealt with by the new DPJ government but there are still plenty of swanky new office building going up around the place and the country is still an exporting powerhouse. The demise of Japan Inc has been predicted by the “experts” now for about a decade, but it is still here and chugging along, albeit not at a hectic pace.

But I guess since it is in Japan I will see if I can get the inside scoop as they say

The consumption rate of many products changes over time and these changes can often have more to do with consumer preferences rather than being a reflection of how the wider economy is performing. The article you posted mentions that younger people are drinking less beer so thankfully they have not blamed this drop on the bubble economy or deflation

I wonder how sales of imported wine are doing?

Anyway I am ready to help Asahi if they are willing to help me and cut their beer prices!

Japanese beer sales slump to record low in January
http://www.marketwatch.com/story/japanese-beer-sales-reportedly-slump-to-record-low-2010-02-11