AMPONTAN

Japan from the inside out

The end of the LDP

Posted by ampontan on Wednesday, April 4, 2012

When your ideology has become rigid, you have checked your brains at the door. If you want proof of that, just look at today’s liberals. Their ideology has been extinct for years and they are walking around like the living dead, trying to preserve the welfare state and the vision of Lord Keynes while the whole world crumbles around them.
– Former leftist/liberal Roger L. Simon

SOME people are born with numb skulls, while other people have to shovel away at the irrigation ditches for years to get all that water onto the brain. No one works longer or more assiduously to obtain a black belt in cretinhood than the world’s political class, as a glance at any newspaper on any day in any country will demonstrate. Japanese politicos share the same defective DNA, but only their parents know whether the members of the established political parties here are congenital lackwits or shed all those IQ points after years of keeping their foreheads to the whetstone.

During his 5.5 years in office, Koizumi Jun’ichiro led the politicos by their nose on The Shining Path to landslide elections and real structural reform of government. A lower house election called specifically as a referendum on privatizing Japan Post rewarded his government with a historical mandate and solidified the prime minister’s poll ratings at 70%. It was one of those happy but rare occasions when the popular will intersected with sensible reform to exclude the entrenched parasitic interests. It should all be as obvious as a wet mackerel in the face.

There is never a reason for a government to own a bank or an insurance company, and there is no longer a reason for them to own post offices in the age of e-mail and private sector express delivery companies, and everyone knows it. To be sure, it’s possible that the victory was due in part to a gratitude vote: Sheer delight by the electorate because a politician actually asked for their opinion and staked his career on it. From the time he stepped down in 2006 until he left politics in 2009, Mr. Koizumi consistently topped the list of polls asking the public who they thought would make the most suitable prime minister. That’s too long to be called an afterglow.

The Democratic Party ran the classic bait-and-switch scam when they promised reform pre-election to gain control of government. One of their “reforms” was to stick a finger in the electorate’s eye and roll back the changes at Japan Post. While the DPJ couldn’t be expected to catch the plot if they ran that finger over the pages and mouthed the words, some members of Mr. Koizumi’s Liberal Democratic Party should have been unwilling to step into the mudboat. It turns out there are — three.

The LDP held a general meeting on the 27th and gave their formal approval to a proposal they worked out with New Komeito to amend the Japan Post law, thus neutering their signal policy achievement of the past decade. They and the DPJ will submit that proposal to the Diet. Instead of forcing the government to divest itself of Japan Post stock by 2017, the new law requires the government to “endeavor” to sell the stock “quickly”. There you have the perfect example of how reform is deboned by the butchers in the government and bureaucracy. If the law stands, they’ll still be “endeavoring” to sell the stock when all the girls of AKB48 are grandmas.

LDP President Tanigaki Sadakazu signed the original Cabinet resolution calling for privatization in 2004, so he was for it before he was against it. Last week, however, he said:

“The DPJ continues their indecisive politics, but we will present a serious resolution.”

That’s not inbred stupidity. He had to cultivate it.

Koizumi Shinjiro, the former prime minister’s son and successor to his Kanagawa Diet seat, was one of the three people to object to the party’s decision. He objected in particular to Mr. Tanigaki’s…statement, for lack of a better term:

“To say that (the DPJ’s) indecision is unacceptable, but that this proposal is decisive, is irrational.”

Suga Yoshihide was more statesmanlike:

“(Seven years ago) we had a great debate in the party and concluded that this country will be in trouble without structural reform. We won a major election victory on the Japan Post issue. Retreating from this principle is unacceptable.”

But more to the point was the party’s former secretary-general, Nakagawa Hidenao:

“It is the beginning of the end of the party.”

LDP General Council Chairman Shionoya Ryu seems to have a hearing disability in addition to being beef-witted. After the meeting voted to accept the proposal, he declared:

“It’s unanimous.”

But it wasn’t, and the opponents threatened to vote nay when it comes to the Diet floor. In a post-conference briefing, Mr. Nakagawa blasted the party for changing a policy ratified by popular mandate without another election. “If that’s how we’ll do it,” he said, “we’re the same as the DPJ.”

Now that’s a low blow.

The interview continued:

Q: The people supporting the amendment said, “The Koizumi reform era is over,” and “Times have changed.” What do you think?

Nakagawa: I don’t know who said that, but the recent history of our party includes an extremely important administration that lasted five years. After that, we had a series of very short administrations, and then became the opposition party. In that sense, we brought about today’s circumstances because we didn’t value our first principles, so we will continue to bring about the same circumstances in the future.

On the outside looking in, Your Party Secretary-General Eda Kenji didn’t say it was the end of the party, but he did say the party’s reversion is complete. The word he used for reversion was “atavism”.

Mr. Eda’s objections were practical as well as philosophical, noting that the problems were the obligation for JP’s financial companies to provide universal service and the government’s financial stake. He said that any attempt by the companies to enter new business sectors before the stock is sold would violate most financial regulations around the world, and the governments of those countries would object. (Good luck in the TPP negotiations.) He stated the obvious when he said that government ownership means fair competition in the banking and life insurance sectors is unlikely. He also knows the shares are unlikely to be sold. Where else is the government going to come up with the domestic cash to buy those deficit financing bonds?

He concluded:

“Your Party is of course opposed to this bill, which is a change for the worse.”

More than being the beginning of the end or a textbook example of political atavism, however, it would be more accurate to say that the three parties have now congealed into a largely indistinguishable mass of foul-smelling sludge that fills the moat around the Castle of Vested Interests. When the people leading the revolution of the regions against the center blast the “existing parties”, they’re talking about those three.

It is as if they were 18th-century barbers drilling holes into their own skulls to release the vapors. Now hear this: LDP Secretary-General Ishihara Nobuteru announced the LDP would consider voting for the DPJ’s consumption tax increase if the DPJ dumped Ozawa Ichiro. In a rare display of common sense, Deputy Prime Minister Okada Katsuya told him to mind his own business.

Taxation is a policy matter, and a politician has to look at the numbers — all the numbers, including the Finance Ministry’s secret money stash — to decide. The membership standards of a political party, no matter how lax, are unrelated to policy issues, and should not be a factor in another party’s collective position on any policy issue.

The three political stooges will eventually run the Nagata-cho Choo Choo off the rails, soon or late. The only solution is for the passengers to detach as many of the cars from the locomotive as possible before that happens. It’s a matter of life and death.

Afterwords:

One month after the DPJ formed a government, then-Prime Minister Hatoyama Yukio appointed Saito Jiro to head Japan Post. Mr. Saito is a veteran of the Finance Ministry, and was his era’s equivalent to Katsu Eijiro today.

Mr. Katsu was sent over by the Finance Ministry to serve as an aide to Prime Minister Noda. Many consider him to be the PM’s puppeteer and the man brainwashing the Cabinet into ever-escalating consumption tax increases. The size of the government doesn’t matter to the ministry as long as the size of the tax revenue is to their satisfaction. His fellows in the Finance Ministry hail him as a star bureaucrat of exceptional skill and talent.

Mr. Saito served in a similar capacity during the first non-LDP administration of Hosokawa Morihiro. He teamed with another backroom string-puller: Ozawa Ichiro, the man Mr. Ishihara wants the DPJ to dump. In those days, Mr. Ozawa and Mr. Saito came up with a scheme to introduce a 7% social welfare tax. The public didn’t like that either.

When Mr. Hatoyama appointed Mr. Saito to serve as Japan Post head several years after he had left the Finance Ministry, the prime minister tried to deflect the outrage by saying he had been out of the public sector so long his perspective had changed. With Mr. Hatoyama, there were so many eye-rolling moments the nation turned swivel-eyed.

Eighteen years later, Ozawa Ichiro is trying to bring down the Noda government for doing the same thing, with the same sort of Finance Ministry allies, that he himself tried do during the Hosokawa government.

The person who recommended Mr. Saito to Mr. Hatoyama was Kamei Shizuka, the head of the People’s New Party, then the DPJ’s junior coalition partner. The PNP is a single-issue party formed to turn back the Japan Post privatization. Mr. Kamei tapped Mr. Saito because he thought it would please Ozawa Ichiro.

Mr. Kamei used to be one of the bigger enchiladas in the LDP. He is said to have been the ringleader of the LDP machinations to bring down the Hosokawa administration, which was a coalition of eight small parties. He coaxed the Socialist Party to leave and join an LDP coalition by playing on their dislike of Mr. Ozawa’s dictatorial habits. He disliked them too, and he sometimes referred to Mr. Ozawa as a “fascist bastard”.

Kamei Shizuka last week left the governing coalition because he’s opposed to the tax increase. He’s conferring with Tokyo Metro Governor Ishihara Shintaro and others about forming a new old guy party. Earlier this week he talked about working out a cooperative arrangement between the new party and the fascist bastard himself, Ozawa Ichiro.

If Japan weren’t a civilized country, these people would wind up hanging from meathooks.

UPDATE: When China moves in the right direction, and that direction is the opposite of yours, that’s a sure sign you’re in trouble with a capital T.

China’s state banks make money “too easily” and their monopoly on financial services has to be broken if cash-starved private enterprises are to get access to capital when they need it, state media cited Premier Wen Jiabao as saying on Tuesday.

Wen’s comments, carried on China National Radio, come days after Beijing gave the go-ahead for financial reforms in Wenzhou — known as the country’s cradle of private enterprise — that will encourage private investment in local banks…

Private investors in Wenzhou will be encouraged to buy into local banks and to set up financial institutions such as loan companies and rural community banks, the State Council said in a statement posted on the government’s website last week.

*****
Then again, Sakamoto Ryuichi composed The End of Asia more than 30 years ago, and that hasn’t happened yet. Recreations of renaissance music haven’t ended after several centuries, either.

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