Europe debt crisis biggest risk for Japan economy: PM

By Tom Lydon: The Japanese yen and related currency exchange traded funds have made moves higher on the news that Japan’s new prime minister is Yoshihiko Noda, previously the finance minister.

Japanese Prime Minister Yukio Hatoyama on Friday made a rare call for "firm steps" to stem the strength of the yen after the currency's recent advances hit exporters' earnings.Hatoyama said the current high value of the yen gave a misleading impression of the world's second-largest economy, adding: "Japan's economy and industries aren't necessarily strong," in comments cited by Dow Jones Newswires."I think we need to take firm steps against such yen strength," he told a parliamentary session, adding that "there is a need to "politically cooperate on the world stage."

Ralph Shell submits: In an article written earlier this month, observing the increasingly narrow trading range of the USDJPY, we wondered when and which direction the pair would move. The initial move to the top side proved to be a head fake. On July 7th and 8th the U.S. dollar gained on the yen, trading up to the topside of the BB, above 81.40, and then failed.

David Cameron "chugged down" cups of rice wine during a visit to Japan last year, Yoshihiko Noda, the former Japanese prime minister has revealed. Mr Cameron made his first official visit to Japan last year to promote trade and investment.

The short term effect of Japanese stimulus following the earthquake and tsunami has now worn off. All Japan has to show for that stimulus is a bigger pile of debt, proving once again the Broken Window Fallacy. In the real world, Japan has a debt-to GDP ratio of 225% and rising. Japan's export machine has stalled. So has Japanese manufacturing in general.