After Thoughts on Tokyo Being Awarded the 2020 Olympics - Will Tokyo 2020 Lose Money?... What Do You Think?

In yesterday's post entitled, Tokyo Gets the 2020 Olympics... Unfortunately... I wrote about how I was unhappy about the Olympics coming to Tokyo as I have good reason to believe that the Japanese government will spend taxpayer monies on construction projects for the Olympics and, after it is all over, the average Japanese tax payer will be saddled with billions of dollars of debts. 

Guys like Al Hitler or North Korea's Dim Son like the Olympics, they get a chance to show their public how great they are! Read about the wisdom on India concerning the Olympics here.

I think historical precedent of the Olympics themselves and the track record of the Japanese government with debt at 245% of GDP are pretty strong evidence to support my fears....

I wrote in that post:

"Oh, but the Olympics will be good for the economy!" Oh really? Tell another country that is deeply into corruption and kickbacks, Greece, about that one. This from the Daily Beast:

"Indeed, the $12 billion cost of hosting the Games contributed to the Greek economic collapse and left an abandoned Olympic Park, which has been overrun by weeds and graffiti artists."   

Yeah, but that's Greece. Japan is different, right? 

Nope. Japan should have learned her lesson a short 16 years ago. Please refer to Yahoo: Olympic Cities Booms and Busts?

Nagano, Japan (Winter 1998) Boom or Bust? Bust 

The full cost of the Nagano Winter Olympics will never be known as the documents accounting for money spent on the Olympic bid were burnt on the orders of the Olympic Committee vice-secretary general, Sumikazu Yamaguchi. (Emphasis mine) Yet it is clear that it went vastly over budget, with new infrastructure to make the Games work in this small Japanese city costing up to A$9.4 billion. As a result, Nagano fell into recession, with the debt on Olympic projects roughly A$28,000 per family and growing. It is estimated that these debts will take until 2015 to pay off. 

The Olympic venues alone cost A$20.6 million per year in upkeep, and their rental income brings only one-tenth of that amount. Although Nagano is working hard to stop the Olympic venues turning into rotting white elephants, the cost of their upkeep is not easy for the city's finances. Today it still costs A$2.3 million a year alone to maintain the M-Wave, where local school children take skating lessons on a high-speed 400-metre rink in winter. The installation of a high-speed bullet train during the Olympics also posed problems for the local hotel industry as more skiers came on day trips rather than spending the night and locals are more inclined to go on shopping days to larger cities. 

It is estimated that the last Olympics in Japan in Nagano in 1998 lost $10 billion USD. Read the rest of Tokyo Gets the 2020 Olympics... Unfortunately... here. 

After I wrote that article, I received calls and emails from people who argued with me and others who were totally supportive. So I decided to do even more research on the subject asking myself the question; "Is it really possible to make a profit on the Olympics?"

Well, before I give you my useless two cents, here's some interesting information I found. Did you know that only two Summer Olympic games were profitable since 1932? Yep. Two. They were Los Angeles in 1984 and Atlanta in 1996.

How did they do it? Well, I want you to keep in mind that both of these Olympics happened in the USA. These events happening in the USA is critical information and the reason for that will become more apparent later... 

But, for now, let's look at the first one; Los Angeles 1984:

From Wikipedia:

"Where ambitious construction for the 1976 games in Montreal and 1980 games in Moscow had saddled organizers with expenses greatly in excess of revenues, Los Angeles strictly controlled expenses by using existing facilities except a swim stadium and a velodrome that were paid for by corporate sponsors…. The 1984 Summer Olympics are often considered the most financially successful modern Olympics."

Also from All About History:

"...the 1984 Olympic Games saw, for the first time ever, corporate sponsors for the Games. In this first year, the Games had 43 companies who were licensed to sell "official" Olympic products. Allowing corporate sponsors caused the 1984 Olympic Games to be the first Games to turn a profit ($225 million) since 1932."

OK. Let's check that. The 1984 Olympic Games were profitable because of two things:

1) Use of existing facilities

2) Corporate sponsors

Now, let's look at the only other profitable Summer Olympics since 1932 (I don't really want to go into Winter Olympics because, actually, comparing, for example, Nagano 1998 with a Summer Olympics Game is unfair); the Winter Olympics are an extremely risky business as they are not nearly as popular with audiences as the Summer Games are. But let me use one example (again an Olympics in the USA):

From Yahoo:

"The Salt Lake City Winter Olympics was one of the most expensive of all time, coming close to the cost of hosting the summer Games, at A$1.8 billion (including A$470 million for security). However Organizers claimed a A$94 million profit as a result of lucrative television deals."

OK. Now we can see the third factor that builds a profitable Olympics: 

3) Television deals and the advertising that goes along with them.

So it is possible to make money from the Olympics. 

But, looking at this from a broadcaster in Japan perspective, I can now tell why, after researching these and dozens of other articles, I am even more convinced that the Tokyo 2020 games will lose money and become a massive tax burden on the Japanese economy. 

First let's compare apples to apples: Let's examine why the 1984 Olympic Games were profitable. They were profitable because of two things. First, as stated above, 1) Use of existing facilities

Well, Japan has already announced that they aren't going to do that. Please refer to: Tokyo’s winning 2020 Olympics bid will only worsen Japan’s debt headache:

"...The cost of Tokyo’s bid fell between $5 billion and $6 billion. That includes the construction of 11 new sporting venues and 10 temporary ones, at a cost of $3 billion. The Olympic village will cost another $1 billion, according to the IOC.

The Tokyo government projects that the Games will generate $30 billion in economic benefits for Japan—and that, it said, is a conservative estimate since it calculates only direct spending on the Olympics. One of the notions is that it will boost domestic consumption, helping wrest the country from a couple decades of debilitating deflation. 

So Tokyo’s victory basically is license for the Japanese government to spend like crazy on infrastructure. You can see why Shinzo Abe, Japan’s prime minister, put himself on the line to win the bid. An Olympics building bonanza is basically the second pillar of Abenomics—fiscal stimulus (the first is monetary policy; the third is structural reform)—on steroids...."

So, when speaking of out of control government spending, well, who can do that like the Japanese? Especially the current government. This does not bode well.

Now, let's look at the second factor of the Los Angeles Olympics that helped profitability:

2) Corporate sponsors

This is a mixed bag here. On the one hand, I can't really see Japan having too much trouble with Corporate sponsorships... Excepting two tiny little problems: Japan's economy is already a wreck and the on-going problems with Fukushima (bad advertising)...

Now that brings me to the final point that convinces me beyond the shadow of doubt that the Tokyo Olympics will lose money: 

3) Television deals and the advertising that goes along with them.

I now speak from experience and it is so obvious that I wonder why no one can see this... The biggest problem with Japan getting major TV contracts from the USA and the west? The same as it was during the Nagano Olympics and the 2002 World Cup (which lost Japan a few 10s of millions too).

CNN writes in "Is There a World Cup Economic Bounce?":

"The games in Japan -- which co-hosted with neighboring South Korea in 2002 -- continue to be an economic drag on the local communities. Why? Maintenance of the stadiums built for the games costs more than the revenues they bring in. 

Eight of the 10 stadiums built or renovated in Japan for the 2002 World Cup lose between $2 million and $6 million a year, the balance of which is picked up by Japanese taxpayers. "No strategy, no success," said Ichiro Hirose, a member of the 2002 World Cup Bidding Committee in Japan. "They did not have a strategy" for use of the stadiums after the games, he said."

CNN also adds that pesky little "existing facilities" point:

"The 1994 games in the U.S. generated a $60 million surplus from ticket sales, sponsorships and licensing agreements, said Alan Rothenberg, chairman and CEO of the 1994 World Cup. Since the tournament used existing stadiums, there wasn't a significant infrastructure legacy from it..."

But I digress. 

Here's a very simple reason why Television contracts will be sorely lacking for the Tokyo 2020 Olympics and that will impact corporate sponsorships, and there's not a thing Tokyo can do about it; the Internet and Time Zones.

That's right. Think about it, if you are some person who loves sports but live in massive TV markets like New York or Los Angeles, are you interested in waking up at 3 or 4 am to watch a live sports event from Japan?

I doubt that the average American will do so. And since the average person won't, then I suspect that major US (and European) stations might balk at paying high prices for rights to broadcast live when the audiences are all sleeping? And there's little reason to buy rebroadcast rights as the Internet will already tell everyone the result and, as everyone knows, if the sports aren't live, then what's the point?

Also, for all its warts, the USA is still, by far, the biggest economy in the world. Let's not forget that in our calculations. 

I think I've heard of this problem with TV happening before (I work in broadcasting!) It happened with the Olympics in Beijing; it happened in Nagano; it happened with the 2002 World Cup in Korea - Japan and, because there's no way to change the time zones, it's going to happen in Tokyo 2020.

And when TV doesn't broadcast these games live to an awake audience (the average viewer) then big sponsors aren't interested. 

When things like this happen, I think it makes people leery. Please refer to: NBC reports financial loss after Beijing Olympics, claims profit is on the way:

NBC, one of the largest American television networks, held the exclusive right to host the 2008 Summer Olympics Games coverage for the US. Despite generating over $1 billion in revenue from the Olympic coverage, NBC has reported a loss of undisclosed size in its third quarter. The network is still hopeful to come out with a profit at the end of the year, and claims its third quarter loss stems from the way Olympic revenues and expenses are booked by accountants. 

My guess is that the availability of free online Olympic content played a significant role in contributing to NBC's financial loss. 

So the question arises, will major TV networks keep investing a lot of money into Olympic coverage and compete with YouTube (and other popular participatory sites), when their Olympic profit margins are getting so thin or even negative? 

I bet "No!"

So, let's tally:

The three factors that made profitable Summer Olympics since 1984 were:

1) Use of existing facilities

2) Corporate sponsors

3) Television deals and the advertising that goes along with them.

*Japan has already announced massive new spending on new facilities 

*Corporate Sponsors? We're probably OK there... Just "OK."

*We are in bad shape in this area because of time zones and the Internet.

I don't see this turning out too well. I predict a hugely successful 2020 Tokyo Olympics... 

I also expect a massive hangover and a huge tax bill leftover to pay for it too. 

What do you think?

More? Read this: The Curse of the Olympics 

http://www.thedailybeast.com/articles/2013/09/07/the-curse-of-the-olympics.html

Tokyo Gets the 2020 Olympics... Unfortunately...

(This post will be either loved or hated by many people. This is just my opinion... One not  to be spoken loudly in public in the current atmosphere... Don't get mad at me about it. My opinion isn't going to change a thing. If it makes you mad, then perhaps it's because my points can't be denied?)

It was just announced this morning that Tokyo was awarded the 2020 Olympics... Egads! The worst result possible (for the people of Japan!) Congratulations to the "losers."

But don't get me wrong, I think the Olympics are OK... As long as the taxpayers don't get stuck with the bill.... But, for the life of me, with our current economic problems, I can't see how this is going to help. No. I only see it making things MUCH worse... Excepting for the "Bread and Circuses" part.

No, I'm not happy about it. One would have thought that because of stuff like Fukushima that Tokyo getting awarded the Olympics would have never happened in a million years... But it did. I guess Abenomics and throwing money around works! Of course, or as Homer Simpson would say, "Doh!"

The announcement was made this morning. Yahoo reports: Tokyo will host the 2020 Olympic games, beating out Istanbul and Madrid:

"...Both Istanbul and Tokyo offered notable steps forward for the Olympic experience. Istanbul would be the first time that a primarily Muslim country would host the Olympics, while Tokyo would be the first Asian city to host it twice. Tokyo last hosted the Games in 1964.  

Madrid had attempted three straight times to win the Games, but failed yet again despite a pitch for a "sensible, reliable and trustworthy" Olympics. Madrid officials noted that 80 percent of facilities which would have been used for the Games were already built and in use."

That last line is the telling one. "80 percent of all facilities... were already built and in use." Yeah. That kills Madrid. Why? Well, if shit doesn't need to be built then who is going to throw around all those juicy construction contracts (built on taxpayers money) to their buddies in big construction companies? Who will pocket the kick-backs? What well-connected individuals or privately run corporations will buy those facilities (built with public tax dollars) for no-bid contracts after the Olympics are over?

Yeah, in spite of all her problems, Japan still has a better economy than Istanbul and Abenomics guarantees a lot of (freshly printed) money will be thrown around... The Japanese taxpayer? They cheer and scream and bend over for more.

These people are so brainwashed that they think the Olympics coming to Tokyo is actually a good thing and that somehow, by magic, their lives have improved and they will make more money!?

People these days watch too much TV and are sorely lacking in the information and critical thinking department; they parrot what they are told on TV.

By the way, it's all just anecdotal evidence, but I asked dozens of Japanese people (you know, lowly workers and tax payers) if they wanted the Olympics. Not a single one of them said, "Yes."

"Oh, but the Olympics will be good for the economy!" Oh really? Tell another country that is deeply into corruption and kickbacks, Greece, about that one. This from the Daily Beast:

"Indeed, the $12 billion cost of hosting the Games contributed to the Greek economic collapse and left an abandoned Olympic Park, which has been overrun by weeds and graffiti artists."   

Yeah, but that's Greece. Japan is different, right? 

Nope. Japan should have learned her lesson a short 16 years ago. Please refer to Yahoo: Olympic Cities Booms and Busts?

Nagano, Japan (Winter 1998) Boom or Bust? Bust 

The full cost of the Nagano Winter Olympics will never be known as the documents accounting for money spent on the Olympic bid were burnt on the orders of the Olympic Committee vice-secretary general, Sumikazu Yamaguchi. (Emphasis mine) Yet it is clear that it went vastly over budget, with new infrastructure to make the Games work in this small Japanese city costing up to A$9.4 billion. As a result, Nagano fell into recession, with the debt on Olympic projects roughly A$28,000 per family and growing. It is estimated that these debts will take until 2015 to pay off. 

The Olympic venues alone cost A$20.6 million per year in upkeep, and their rental income brings only one-tenth of that amount. Although Nagano is working hard to stop the Olympic venues turning into rotting white elephants, the cost of their upkeep is not easy for the city's finances. Today it still costs A$2.3 million a year alone to maintain the M-Wave, where local school children take skating lessons on a high-speed 400-metre rink in winter. The installation of a high-speed bullet train during the Olympics also posed problems for the local hotel industry as more skiers came on day trips rather than spending the night and locals are more inclined to go on shopping days to larger cities. 

The Japanese government currently has the highest by-far debt to GDP ratio in the entire world... Current estimates have it at 245% of GDP and Japan's Vice Minister of Exchange Rates tell the Telegraph UK:

"A debt ratio of 245pc of GDP is not really safe, and it is not happening because we are investing," said Takehiko Nakao, Japan's 'Mr Yen' or vice finance minister in charge of the exchange rate. 

Mr Nakao said the scope for further fiscal stimulus is running out and the country must restore public finances to a sustainable path by the middle of the decade. "We can't continue to expect people to lend money to us," he told The Daily Telegraph. 

The comments touch on an acutely sensitive topic. A number of global hedge funds and banks have begun "shorting" Japan's debt, the world's biggest at $23 trillion."

Global Hedge Funds are now "shorting" Japan?... Now the Japanese government wants to print and borrow even more money to pay for an Olympics? (An Olympics that, by the way, will have to be paid back from the taxpayers and through destruction of the buying power of the currency through printing and inflation... Gasoline is already at it's highest price in years!)

Testoterone Pit sums it up in: Abenomics Wins: Budget And Inflation Both Jump (Over The Cliff) 

It would be ridiculous if it weren’t so sad: Facing exploding budget deficits and an uncircumnavigable mountain of debt over twice the size of the economy – Japan’s two largest economic problems – the government in its blind devotion to the religion of Abenomics screams, “Damn the torpedoes, full speed ahead.” 

The new budget requests from government ministries for the next fiscal year, which starts April 2014, total over ¥100 trillion. This includes the special account for reconstruction. The ¥99.2 trillion (over $1 trillion) for all other expenses, the mostest ever, is up a breath-taking 7.1% from the current budget of ¥92.6 trillion. And then there is even more that hasn’t been specified yet. 

While Abenomics has promised to stimulate the economy, it is certainly stimulating Japan’s most destructive problem, the deficit. So the ministries added ¥3.5 trillion to be handed out to Japan Inc., on top of the money it’s already getting, to promote growth (of the deficit). The Ministry of Finance threw its own goodies into the basket: ¥25.3 trillion ($257 billion!) in costs to service Japan’s national debt of over ¥1 quadrillion. A jump of 13.7% from the pile set aside for the current fiscal year."

Read more on the government plan to destroy the currency and thereby jumping inflation here: 
http://www.testosteronepit.com/home/2013/8/30/abenomics-wins-budget-and-inflation-both-jump-over-the-cliff.html

Yeah, and one last thing, about that "reconstruction issue" that Abe and his cronies pay so much lip service to... Has anyone seen the areas around Fukushima Dai-ichi and the areas that were destroyed by the March 11, 2011 earthquake and tsunami disaster recently? Nope? 

I did. Just last week...

Guess what? It still looks basically like what it did two years ago right after the disaster... Thousands of cars and trucks are still sitting out in open fields... Entire towns and small cities are smashed and still shuttered.... 

There doesn't seem to be a single person there who is happy with the pace of reconstruction (whether they are pro-nuclear power or anti-nuclear power)...

And now Abe and Japan are going to print up a bunch of money, increase the national debt, throw it all on the taxpayers to build new sports gyms and hotels in..... Tokyo?

Now, mind you, I am not pro-government spending for any construction projects at all, anywhere... But I am not in the government who, by the way, takes every opportunity it gets - when makes excuses for the sales tax increase - to pull emotional strings of the public concerning the March 11 disaster by mentioning "money needs to be set out for reconstruction" (of the earthquake/tsunami disaster zones). Nope. 

They say it. I didn't. I don't.

I'm wondering where the priorities lie for the supposed "leadership" of this nation? But, of course, why do I wonder? Their priorities lay where they always have been: Buttering the hands of their political friends and allies. Where else?

Never forget that the Olympics are a privately run business, when they profit, they keep the profits... When they lose money, the local governments socialize the losses and put them on the backs of the taxpayers.

This isn't going to last very much longer...

No modern Olympics games has ever made any money:

Watch the video:

Ultimately, the message is: The Japanese debt is 245% of GDP. That means that YOU (Mr. and Mrs. Japan),  working people, will be at $140,000.00 (USD) in debt by 2016 continuing today's rate. (That's about ¥13,972,010.33 per person!) We cannot afford to increase debt in this country. The Olympics are fine, but I think you had better to fight to make sure that the government doesn't spend YOUR money on fat projects and then YOU have to pay the bill later! This is why I wrote this post. Everyone can be all happy about the Olympics, but they had better to understand what this means. Adding debt (like Nagano - which added ¥3,000,000 in debt to every man, woman and child and baby in Nagano and is still increasing today). Is something you had better tell your political leaders you don't want.

Olympics! Sex! Scandals! Bribery! Geishas and Sushi! Burning Books and Nazis! This Post Has it All!

Bread and Circuses: Olympic Games are a Scam to Take Yours and Your Children's Money Away!

Read and watch this one about how the 2002 World Cup cost - and is still costing - Japanese taxpayers millions: Is there a World Cup economic bounce?
http://edition.cnn.com/2010/BUSINESS/06/11/business.bounce.world.cup/index.html 

Japan: The End of an Era

I hate to say "I told you so!"... Well, no, that's not true. I LOVE saying, "I told you so!" Nearly four months ago, on December 29th, I predicted exactly what was going to happen with a weak yen. Now, this prediction has come to pass. Things are deteriorating quickly. I wrote in:

Here's Why A Weak Yen Will Destroy Japan  

The clowns in the LDP think a weak yen will rescue Japan's faltering economy by making exports cheaper... Sounds good... That is, if there anyone to buy Japanese goods.  I fear that the weaker yen will be the last straw in breaking the Japanese Economy. Here's my reasoning why... 

China and Japan are in a row over islands. Boom! Down goes exports to Japan's biggest trading partner. Please refer to the NY Times article, "Japan Trade Suffers as China Ties Deteriorate":

"Shipments to China, which is Japan's biggest trading partner, tumbled 14.1 per cent as demand dropped for Japan-branded products..."

Also refer to Japanese Car Sales Plunge Amid China Rage.

Europe is in no condition to be big spenders on anything as Euro states are already in deep recession.

The USA isn't in good shape either as it is in recession too and Japanese cars aren't selling well due to Fukushima and other issues.

Gee? So what will a weak yen certainly buy for Japan? Answer: How about a 10% increase across the board on energy imports?

Read more at: Here's Why A Weak Yen Will Destroy Japan 

Now, the numbers are coming in and they confirm what was (easily) predicted.

From: Testosterone Pit

Japan's trade deficit in February jumped to ¥777.5 billion. Exports dropped "unexpectedly" by 2.9% from prior year, despite Abenomics. Imports surged 11.9%. Eighth monthly deficit in a row, worst since 1979. Good news: exports to the US up 5.7%. But to China, they plunged 15.8%, to Hong Kong 14.3% (still iffy commercial relations due to island tiff). To the EU, they skidded 9.6% (tough economy). Not getting better: February 2012 had a surplus of ¥32.9 billion, after what was a record trade deficit in January of ¥1.4 trillion. This year in January, the trade deficit hit a new record of ¥1.63 trillion, and now ¥777 billion.    

Trade deficits aren’t the end of the world for Japan. But they’re the end of an era. Since the mid-1980s, Japan booked large annual trade surpluses, which helped fund budget deficits without having to rely on foreigners. But in 2011, there was a deficit of ¥2.56 trillion. A temporary blip, it was called. In 2012, ¥6.93 trillion ($78 billion). An all-time record. And so far this year, the trend is even worse. (Read more at Testosterone Pit)

And, Zerohedge adds:

Japanese Exports Drop More Than Expected Smashing Adj. Trade Balance To New Record Low 

It appears Abe and his henchmen had better stop doing things and say something as the huge devaluation of the JPY so far is NOT having the effect he had hoped for. Exports dropped 2.9% - more than expected - and while imports rose less than expected, the currency drop still meant an 11.9% surge in imports. All this means is that on a seasonally-adjusted basis, the Japanese Trade Balance just hit a new all-time record low (negative). USDJPY is strengthening on the news... it seems that well-placed non-news headline at 2am Japan time is well worth it now to cover this debacle... We assume the lesson is - just wait, "if we devalue, they will come."

Japanese Prime Minister Says He Can Get Sales Tax Doubled - I Predict He Will Be Out of a Job by September 2012

This just came out on Bloomberg. The current Japanese prime minister Yoshihiko Noda says he can get a consensus and coalition on doubling the sales tax rate.

Bloomberg reports in Noda Says Deal Possible With Opposition to Double Consumption Tax:

Japanese Prime Minister Yoshihiko Noda said he thinks he can reach a deal with the opposition to double the 5 percent consumption tax in order to shore up the country’s social security system.

“I believe we can come to an understanding,” Noda told journalists from overseas media organizations today in Tokyo. “I sense that our debate is beginning to jibe.”

This guy is a goner

The combination of an aging society and a declining birthrate has put Japan in an “unprecedented situation” as the government seeks to rein in soaring welfare costs, Noda said. All political parties understand the urgency and must work together as “the question is how to secure stable financing for a sustainable social security system.”

Ha! Ha! Ha! That just shows how delusional this Noda guy is... He has to say stuff like this to the foreign press. Back at home, to the Japanese press, he'd get laughed at. 

Sadakazu Tanigaki, head of the main opposition Liberal Democratic Party, yesterday said on NHK Television that “it would be best” for Noda to seek a new mandate before submitting his tax legislation. He denied media reports that he and Noda met on Feb. 25 to discuss the situation.

Translation: The LDP doesn't want to seem responsible for raising taxes or not being able to fund social security, so they know that if they can force an election in summer, Noda will be out of office and they can keep kicking the can down the road - in the same way as we they been doing for twenty years.

The LDP has it right too. Noda hasn't even been prime minister for a year yet his popularity ratings are already weak enough that he could never stand a chance of winning any kind of election at all. Twenty seven percent approval rating is disastrous. Especially if you stand on an election platform of raising people's taxes!

Why don't they take a page out of Ron Paul's playbook? Cut spending first before even talking about raising taxes and maybe you'll get public sympathy.

Forty percent of voters oppose Noda’s tax plan, compared with 46 percent who support it, according to an Asahi newspaper poll published Feb. 14. Noda’s approval rating fell to 27 percent from 29 percent the previous month. The paper provided no margin of error for its survey of 1,741 people on Feb. 11-12.

Former DPJ leader Ichiro Ozawa, who is on trial for violating campaign financing laws, today on TV Tokyo reiterated his opposition to Noda’s tax plan. Nine lawmakers left the ruling party after it approved the proposal to raise the consumption tax to 8 percent in April 2014 and 10 percent in October 2015.

Really, what's the point of this nonsense article? There won't be any sales tax increase under this prime minister. He will be out of office if he really tries to do so. The crisis amongst the public and the political circles hasn't come to a boiling point (because people don't understand how exponential growth of our debts and interest rates on those debts are going to affect us). And, until this really hits home, people will not tolerate a sales tax increase.

We're way past that anyway. Even with a tax increase, if it is not coupled with a massive decrease in government spending, it will not matter because our debts will continue to accumulate along with the interest on those debts. Past history has shown that tax increases will not help as the government will deficit spend any increase in revenues it gets. When Noboru Takeshita was prime minister and instituted sales tax in 1988, he claimed that it would end our debt problem. It didn't. It couldn't without a cut in spending. After years of borrowing, we are already well past double the GDP in debt. We need to begin paying down that debt before any talk of a sales tax increase will even matter. That means we must massively cut spending right now. 

This is basic mathematics, folks. 

We need to cut spending, including interest on our debt - as well as paying down that debt to under what is received in revenue - as well as having tax increases to fix the problem we are in. I am against any and all tax increases especially if they aren't coupled with massive cuts in spending - and that's not cuts in future proposed spending, that's cuts in today's current budget.

It's simple. If you get five, you cannot spend seven. Once you owe fourteen, even if you start getting six, you still cannot spend seven. You will have to lower your spending to under all income in order to start paying back past debt and interest or you will never get out of the hole. 

Where to cut? Well. I'm sure we can start with cutting government waste and ridiculous spending on prevention of victimless crimes like prostitution, gambling, drugs, and ridiculous police raids on establishments that have waitresses sitting at tables with customers or arresting owners because people are drinking and dancing at restaurants on Saturday nights!   

Anyway, Noda will be gone by September because he doesn't understand these basic concepts and can't do simple first grade math... 

The best thing that could happen is a massive across the board cut in government services, but, in a country that changes prime ministers every year and has elections every summer, that isn't going to happen as politicians won't cut services because they want to give away our money so that people vote for them.

Our current system is ruined and there is no way to fix it. We are sliding down a steep slope into insolvency. 

The good news is that we won't have a sales tax increase this year. The bad news is that none of these other Japanese politicians are able to grasp first grade mathematics either.... Nor will our next prime minister.