Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21
Gold Price Big Picture Trend Forecast 2021 - 13th Jan 21
Are Covid Lockdowns Bullish or Bearish for Stocks? FTSE 100 in Focus - 13th Jan 21
CONgress "Insurrection" Is Just the Latest False Flag Event from the Globalists - 13th Jan 21
Reflation Trade Heating Up - 13th Jan 21
The Most Important Oil Find Of The Next Decade Could Be Here - 13th Jan 21
Work From Home £10,000 Office Tour – Workspace + Desk Setup 2021 Top Tips - 12th Jan 21
Collect a Bitcoin Dividend Without Owning the King of Cryptos - 12th Jan 21
The BAN Hotlist trade setups show incredible success at the start of 2021, learn how you can too! - 12th Jan 21
Stocks, Bitcoin, Gold – How Much Are They Worth? - 12th Jan 21
SPX Short-term Top Imminent - 12th Jan 21
Is This The Most Exciting Oil Play Of 2021? - 12th Jan 21
Why 2021 Will Be the Year Self-Driving Cars Go Mainstream - 11th Jan 21
Gold Began 2021 With a Bang, Only to Plunge - 11th Jan 21
How to Test Your GPU Temperatures - Running Too Hot - GTX 1650 - Overclockers UK - 11th Jan 21
Life Lesson - The Early Bird Catches the Worm - 11th Jan 21
Precious Metals rally early in 2021 - 11th Jan 21
The Most Exciting Oil Stock For 2021 - 11th Jan 21
Financial Market Forecasts 2021: Navigation in Uncharted Waters - 10th Jan 21
An Urgent Message to All Conservatives, Right-Wingers and Patriots - 10th Jan 21
Despite Signs to the Contrary, Gold Price at or Near Top - 10th Jan 21 -
Ultimate Guide On The 6 Basic Types Of Index Funds - 10th Jan 21
Getting Vaccinated at TESCO - Covid-19 Vaccinations at UK Supermarket Pharmacies and Chemists - 10th Jan 21
Cheers for the 2021 Stock Market and These "Great Expectations" - 9th Jan 21
How to Plan Your Child With Better Education - 9th Jan 21
How To Find The Best Casino - 9th Jan 21
Gold Is Still a Bargain Buy - 8th Jan 20
Gold Price Set to Soar as Hyperinflation Looms - 8th Jan 21
Have Big Dreams? Here's How to Pay for Them - 8th Jan 21
Will the Fed Support Gold Prices in 2021? - 8th Jan 21
Stocks trading strategies for beginners - 8th Jan 21
Who is Buying and Selling Stocks in 2021 - 8th Jan 21
Clap for NHS Heroes 2021 as Incompetent Government Loses Control of Virus Again! - 8th Jan 21
Ultimate Gaming and Home Working PC System Build 2021 - 5950X, RTX 3080, Asus MB - Scan Computers UK - 7th Jan 21
Inflation the bug-bear looking forward through 2021 - 7th Jan 21
ESG ETF Investing Flows Drive Clean Energy to Fresh Highs - 7th Jan 21
5 Financial Market Surprises in 2021 - 7th Jan 21
Time to ‘Reset’ Your Investment Portfolio in 2021? - 7th Jan 21
Bitcoin Price Collapses almost 20% at the start 2021 - 7th Jan 21
Fed Taper Nervous Breakdown - 6th Jan 21
What Will the U.S. Dollar Ring in for 2021? - 6th Jan 21
Stock market frenzy- Ride the bandwagon but be sure to take along some gold coins - 6th Jan 21
Overclockers UK Custom Build Gaming System Review Heat Test and Final Conclusion - 6th Jan 21
Precious Metals Resuming Bull Market, Gold, Silver, GDX Trend Forecasts 2021 - 5th Jan 21
Trump’s Iran-COVID-Gate Anniversary  - 5th Jan 21
2021 May Be A Good Year For The Cannabis / Marijuana Sector - 5th Jan 21
Stock Market Approaching an Important Target - 5th Jan 21
Consumer Prices Are Not Reflecting Higher Inflation; Neither Is The CRB - 5th Jan 21
NEW UK Coronavirus PANIC FULL Lockdown Imminent, All Schools to Close! GCSE Exams Cancelled! - 4th Jan 21
The Year the World Fell Down the Rabbit Hole - 4th Jan 21
A Year Like No Other for Precious Metals… and Everything Else - 4th Jan 21
The Stocks Bull Market is Only Half Completed - 4th Jan 21
An In- Depth Look At Gold Price Trend - 4th Jan 21
Building America Back After a Dark Covid Winter - 4th Jan 21
America's Dark Covid Winter Ahead - 4th Jan 21
Buy a Landrover Discovery Sport in 2021? 3 Year Driving Review - 3rd Jan 21
Stock Market Major Peak in Early April 2021 - 3rd Jan 21
Travel and Holidays 2021 - Flight Knight Cabin Bag Review - 3rd Jan 21
�� Happy New Year 2021 Fireworks and Drone Light Show from London and Sheffied - BBC�� - 2nd Jan 2
The Next IMMINENT Global Catastrophe After Coronavirus - 1st Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Japan Gets Ready for More Military Spending

Politics / New Cold War Aug 09, 2015 - 09:55 AM GMT

By: MISES

Politics

Japanese Prime Minister Shinzo Abe has been pressing for more military spending in Japan, in what critics claim is a violation of Japan’s so-called pacifist constitution. Foreign Policy reports:

In January, the government of conservative Japanese Prime Minister Shinzo Abe endorsed a defense budget of nearly 5 trillion yen, or $42 billion, continuing a three-year growth trend after nearly a decade of decline. The sum still represents a small portion of Japan’s GDP — it accounts for just one percent of it, according to the World Bank — but because offensive military action is prohibited by Japan’s constitution, even a modest increase is controversial.


Japan Has a Big Military Already

We often speak of the Japanese military as if it were some sort of skeleton crew of caretakers. This is not the case at all. Japan spends more on its military than India, for instance, which is in an arms race with Pakistan and has many border issues with which to deal. Indeed, according to the International Institute for Strategic Studies, Japan is the number-seven country in terms of military spending, placing it ahead of hot-spot countries like Israel and South Korea. The IISS estimates that Japan’s military spending is $47 billion, compared to Russia’s $70 billion and China's $129 billion. (The US, of course, spends far more than everyone else with $581 billion.)

So, we find that Japan’s military is hardly insignificant. Yes, Russia has a larger military, but Russian military might is primarily directed toward Eastern Europe, thousands of miles away, and China has many neighbors other than Japan to deal with, and it has a much larger territory that does not enjoy the natural defensive advantage of being an island nation. Moreover, everyone knows that Japan could build deliverable nuclear weapons very quickly if necessary, and it has access to some of the best military technology in the world.

The US Needs More Spending from Japan

Writing back in the year 2000, military historian and international affairs scholar Chalmers Johnson had already predicted that Japanese military spending would increase over the next decade. And now, fifteen years later, he has been proven right.

The reason for the increase in Japanese spending is not due to any Japanese attempts to assert independence from Washington, or a reborn nationalism. Washington still has Tokyo well under its thumb, and there is little danger of the US being thrown out of its multiple and massive military installations in Okinawa.

No, Johnson, wrote, the reason the US wants more military spending from Japan is that the US empire is overextended and running out of money. This was obvious even back in 2000, but the long inexorable march toward slow bankruptcy for the US continues. Among the American satellite states gained after WWII (i.e., Germany, South Korea, Japan) Japan has subsidized the American military the most. That is, Japan is expected to “contribute” more to the American presence in East Asia (in terms of land and spending) than either Germany or South Korea. As the US economy has become less robust, the US has demanded more money from the Japanese. (See Mark Mateski’s Mises Daily article on the “strategy” behind US military spending.)

Johnson writes in his 2000 book Blowback:

Already, the United States cannot afford its various and ongoing global military deployments and interventions and has begun extracting ever growing amounts of “host-nation support” from its clients, or even direct subsidies from its “allies.” ... Japan also pays more generously than any other nation for the American troops on its soil.

Johnson remembers how Japan, even though it avoided military involvement in the 1991 Gulf War, paid $13 billion to the US to finance the war. (Back then, that was a lot of money.)

The current drive to get more military spending out of Japan is part of this continued trend. The biggest departure from history in the new agreement is not the increase in spending, but new provisions that allow the Japanese military to engage in “non-defensive” military operations to assist the United States government. For example, Japan could be in the position of shooting down missiles headed for the United States, and also assisting with military operations geared toward opposing Chinese military expansion off the coast of China, such as Chinese efforts to better control the Spratley Islands. One Japanese lawmaker nearly said as much:

“The bills [expanding the military] are needed because the security situation around our country is changing dramatically,” he said, listing China’s opaque military expansion and tensions over disputed islands among the problems Japan faces.

And that new military spending won’t just stay in Japan, of course. And this makes more Japanese spending an even better deal for American military special interests. Foreign Policy notes that the spending increases will be good for Americans weapons contractors:

But $240 billion can buy Tokyo a lot of new equipment, which could be good for American defense contractors. F-35s are made by Lockheed Martin, based in Texas, and the Marine vehicles are manufactured by BAE Systems, based in Northern Virginia.

Tokyo also plans to buy U.S.-based Northrop Grumman’s Global Hawk drones. It’s also developing two Aegis radar-equipped destroyers and missile defense system with Washington. Those are made by Lockheed.

Thus, it’s likely Japanese opposition to the military expansion goes beyond mere ideological commitment to “pacifism.” Many Japanese also know that it’s just the latest spending plan to help out the Americans who have certainly already taken their pound of flesh or two over the past seventy years.

It would be one thing if the US were actually disengaging from Asia and seeking to diminish its military engagements in Asia. But that’s not happening, and the US is seeking to ramp up its military involvement in East Asia. But to pull it off, the US must get Japan to pay for more of it. If an actual crisis occurs, however, — which is made more likely by an expanded American military presence — all bets will be off and “emergency” military spending will go through the roof, with the deficit-spending spigots (i.e., money supply growth) turned to full-blast.

Ryan W. McMaken is the editor of Mises Daily and The Free MarketSend him mail. See Ryan McMaken's article archives.

You can subscribe to future articles by Ryan McMaken via this RSS feed.

http://mises.org

© 2015 Copyright Ryan McMaken - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules