Thoughts from Japan

Last week, Japan’s Nikkei 225 equity index hit a 15-year high. As I received the usual mobile Bloomberg update about this development, it was interesting to actually be in the country since the world of economics and finance has really been the context for how I have viewed Japan. While most individuals might care little about the minutiae of monetary policy, fiscal policy and financial markets, the reality is that our society is shaped by the small few in the higher echelons of this world. Therefore, as I visit new countries I do look for whether they have figured out a system that works for everyone.

Aside from being a wonderful cultural experience, Japan, and in particular the city of Hiroshima, does prompt contemplation and I found myself being drawn down philosophical tangents such as the morality of war and its limits, consumerism and sustainable economics, wealth distribution and the general nature of mankind. Pensive I know. Still, being in a city that was obliterated by an atomic bomb ‘to bring world peace’ will do that to you.

One thought on the current battle that rages in Europe. On August 8^th 1945, only two days after the A-bomb was dropped on Hiroshima, the former Bank of Japan reopened for withdrawals and provided space for temporary branches of other financial institutions in Hiroshima City. The financial system is perhaps more resilient than people think. The European establishment is trying to bully Greece with fear mongering on the potential fallout if they fail to meet the terms of the bailout. Of course there will be market dislocation in the short term if Greece was to leave the Euro, but life will go on. If Hiroshima can be rebuilt from the ashes, anything is possible.