Since 1995, Transparency International has published an annual Corruption Perceptions Index ordering the countries of the world according to "the degree to which corruption is perceived to exist among public officials and politicians". The organization defines corruption as "the abuse of entrusted power for private gain".
Governments committing huge sums to tackle the world's most pressing problems, from the instability of financial markets to climate change and poverty, corruption remains an obstacle to achieving much needed progress. The 2010 Corruption Perceptions Index shows that nearly three quarters of the 178 countries in the index score below five, on a scale from 10 (highly clean) to 0 (highly corrupt). These results indicate a serious corruption problem.
To address these challenges, governments need to integrate anti-corruption measures in all spheres, from their responses to the financial crisis and climate change to commitments by the international community to eradicate poverty. Transparency International advocates stricter implementation of the UN Convention against Corruption, the only global initiative that provides a framework for putting an end to corruption. Denmark, New Zealand and Singapore are tied at the top of the list with a score of 9.3, followed closely by Finland and Sweden at 9.2. Bringing up the rear is Somalia with a score of 1.1, slightly trailing Myanmar and Afghanistan at 1.4 and Iraq at 1.5.
Notable among decliners over the past year are some of the countries most affected by a financial crisis precipitated by transparency and integrity deficits. Among those improving in the past year, the general absence of OECD states underlines the fact that all nations need to bolster their good governance mechanisms. The message is clear: across the globe, transparency and accountability are critical to restoring trust and turning back the tide of corruption. Without them, global policy solutions to many global crises are at risk.
Saturday, October 30, 2010
Thursday, October 28, 2010
Toranomon-Roppongi Building
Toranomon-Roppongi Area
Vertical Garden City
Construction is currently underway for the Vertical Garden City redevelopment of a large slice of central Tokyo close to ARK Hills. Working in concert with local residents, Mori Building will transform these areas into safer, more comfortable and greener places to live.
About the Project
Concept.
This redevelopment project covers approximately 2.0 hectares of land located extremely close to Kamiyacho Station on the Tokyo Subway Hibiya Line and Roppongi 1-chome Station on the Namboku Line.
Many embassies and hotels are located nearby, making it an area with a strong international flavor, and it is being developed through category 1 urban redevelopment projects such as ARK Hills, Izumi Garden, etc. Moreover the "Loop Road No. 2, vicinity of Shimbashi, Akasaka, and Roppongi" area, which includes the site of this development, has been designated an urgent urban renewal area.
Based on the concept of "a life surrounded by nature in the heart of the city," we are aiming to build an appealing urban area that is very cosmopolitan and has abundant culture. It will combine residential, retail, and business functions to a high standard. The development will be in harmony with other developments in the vicinity, ensure reasonable and sound land use, improve disaster prevention capability, and advance the development of the city infrastructure.
Development of public facilities is to include widening of the ward road on the western side of the site by 12 meters from the opposite bank, and the building of two new ward roads, 9 meters and 6 meters wide, around the perimeter of the site. We will also develop public spaces inside the site itself, an approximately 3,000m2 space on the west side and an approximately 1,000m2 space on the south side, and develop new pedestrian walkways and green areas. There is a height difference of approximately 10 meters between the existing residential areas on the west side and east side of the development site, but this project will help to improve the convenience of the area by installing escalators and elevators in the walkways.
Overview of Plan
Location Roppongi 1-chome and Toranomon 5-chome, Minato-ku, Tokyo
Size of site (C-1 Area) Approximately 15,370m2
(C-2 Area) Approximately 510m2
Total floor area Approximately 143,720m2
Floors Mixed-use tower: Above ground: 47 / Basement levels: 4
Residential building: Above ground: 6 / Basement levels: 2
Major uses Offices, shops, residences
Construction to be started Autumn 2009
Construction to be completed 2012
Vertical Garden City
Construction is currently underway for the Vertical Garden City redevelopment of a large slice of central Tokyo close to ARK Hills. Working in concert with local residents, Mori Building will transform these areas into safer, more comfortable and greener places to live.
About the Project
Concept.
This redevelopment project covers approximately 2.0 hectares of land located extremely close to Kamiyacho Station on the Tokyo Subway Hibiya Line and Roppongi 1-chome Station on the Namboku Line.
Many embassies and hotels are located nearby, making it an area with a strong international flavor, and it is being developed through category 1 urban redevelopment projects such as ARK Hills, Izumi Garden, etc. Moreover the "Loop Road No. 2, vicinity of Shimbashi, Akasaka, and Roppongi" area, which includes the site of this development, has been designated an urgent urban renewal area.
Based on the concept of "a life surrounded by nature in the heart of the city," we are aiming to build an appealing urban area that is very cosmopolitan and has abundant culture. It will combine residential, retail, and business functions to a high standard. The development will be in harmony with other developments in the vicinity, ensure reasonable and sound land use, improve disaster prevention capability, and advance the development of the city infrastructure.
Development of public facilities is to include widening of the ward road on the western side of the site by 12 meters from the opposite bank, and the building of two new ward roads, 9 meters and 6 meters wide, around the perimeter of the site. We will also develop public spaces inside the site itself, an approximately 3,000m2 space on the west side and an approximately 1,000m2 space on the south side, and develop new pedestrian walkways and green areas. There is a height difference of approximately 10 meters between the existing residential areas on the west side and east side of the development site, but this project will help to improve the convenience of the area by installing escalators and elevators in the walkways.
Overview of Plan
Location Roppongi 1-chome and Toranomon 5-chome, Minato-ku, Tokyo
Size of site (C-1 Area) Approximately 15,370m2
(C-2 Area) Approximately 510m2
Total floor area Approximately 143,720m2
Floors Mixed-use tower: Above ground: 47 / Basement levels: 4
Residential building: Above ground: 6 / Basement levels: 2
Major uses Offices, shops, residences
Construction to be started Autumn 2009
Construction to be completed 2012
Janek Gwizdala Project Live
All the players on this recording are monster. Oli rockberger rips it on Ivories, Janek shreds it on Bass - they're all awesome. The composition is constantly fresh. It's like a more jazz-oriented Maceo Parker, but still with a lot of funk influences.The Bass lines have fantastic harmonies, and the band is very tight. One of my favorite contemporary Jazz Trios!
Janek Gwizdala Bass, Oli rockberger Keyboard, Tobias Ralph - Drums.
Janek is one of the highest level bass players alive today but mostly a great composer, a true musician and arranger.
Janek Gwizdala Bass, Oli rockberger Keyboard, Tobias Ralph - Drums.
Janek is one of the highest level bass players alive today but mostly a great composer, a true musician and arranger.
Tuesday, October 26, 2010
Latitudes not Attitudes: How Geography Explains History
Latitudes not Attitudes: How Geography Explains History
Many reasons have been given for the West’s dominance over the last 500 years. But, Ian Morris argues, its rise to global hegemony was largely due to geographical good fortune.
I am wearing your clothes, I speak your language, I watch your films and today is whatever date it is because you say so.This is what Shad Faruki, a Malaysian lawyer, told the British journalist Martin Jacques in a 1994 interview. And he was right: for 200 years, a few nations clustered around the shores of the North Atlantic – ‘the West’, as we normally call them – have dominated the world in ways without parallel in history.
Most people, at some point or another, have wondered why the West rules. There are theories beyond number. Perhaps, say some, westerners are just biologically superior to everyone else. Or maybe western culture is uniquely dynamic; or possibly the West has had better leaders; or the West’s democratic politics and its Christianity might give it an edge. Some think western domination has been locked in since time immemorial: others that it is merely a recent accident. And, with many westerners now looking to China’s double-digit economic growth to pull the world out of recession, some historians even suggest that western rule has been an aberration, a brief interruption of an older, Sinocentric, world order.
When experts disagree so deeply, it usually means that we need fresh perspectives on a problem. Most of those who pronounce on Western rule – economists, political pundits, sociologists – tend to focus on recent times and then make sweeping claims about the past. Asking why the West rules, though, really requires us to work the other way round, posing questions about history, then seeing where they lead. As the masthead of this magazine puts it: ‘What happened then matters now.’
The shape of history
Explaining why the West rules calls for a different kind of history than usual, one stepping back from the details to see broader patterns, playing out over millennia on a global scale. When we do this the first thing we see is the biological unity of humanity, which flatly disproves racist theories of western rule.Our kind, Homo sapiens, evolved in Africa between 200,000 and 70,000 years ago and has spread across the world in the last 60,000 years. By around 30,000 years ago, older versions of humanity, such as the Neanderthals, were extinct and by 10,000 years ago a single kind of human – us – had colonised virtually every niche on the planet. This dispersal allowed humanity’s genes to diverge again, but most of the consequences (such as the colour of skin, eyes, or hair) are, literally, only skin deep and those mutations that do go deeper (such as head shape or lactose tolerance) have little obvious connection to why the West rules. A proper answer to this question must start from the fact that wherever we go – East, West, North, or South – people are all much the same.
So why have their histories turned out so differently? Many historians suggest that there is something unique about western culture. Just look, they say, at the philosophy of Socrates, the wisdom of the Bible, or the glories of Leonardo da Vinci; since antiquity, the West has simply outshone the rest. Such cultural comparisons, however, are notoriously subjective. Socrates, for instance, was certainly a great thinker; but the years in which he was active, during the fifth century bc, were also the age of the Hebrew prophets in Israel, of the Buddha and the founders of Jainism in India, of Confucius and the first Daoists in China. All these sages wrestled with much the same questions as Socrates (Can I know reality? What is the good life? How do we perfect society?) and the thoughts of each became ‘the classics’, timeless masterpieces that have defined the meanings of life for millions of people ever since.
So strong are the similarities between the Greco-Roman, Jewish, Indian and Chinese classics, in fact, that scholars often call the first millennium bc the ‘Axial Age’, in the sense of it being an axis around which the whole history of Eurasian thought turned. From the Mediterranean to the Yellow Sea, larger, more complex societies were facing similar challenges in the first millennium bc and finding similar answers. Socrates was part of a huge pattern, not a unique giant who sent the West down a superior path.
From a global perspective, Christianity, too, makes more sense as a local version of a broader trend than as something setting the West apart from the rest. As the Roman Empire disintegrated in the middle of the first millennium ad and new questions (Is there something beyond this life? How can I be saved?) gained urgency, the new faith won perhaps 40 million converts; but in those same years, in the wake of the Han dynasty’s collapse in China, Mahayana and Theravada Buddhism offered their own answers to the same questions and won their own 40 million devotees. Soon enough Islam repeated the feat in Africa, the Middle East and South Asia.
Even such astonishing Renaissance men as Leonardo and Michelangelo, who refined the wisdom of the ancient West to revolutionise everything from aeronautics to art, are best seen as Europe’s versions of a new kind of intellectual which societies needed as they emerged from the Middle Ages. China had produced its own Renaissance men some 400 years earlier, who also refined ancient wisdom (in their case, of course, the East’s) to revolutionise everything. Shen Kua (1031-95 ad), for instance, published groundbreaking work on agriculture, archaeology, cartography, climate change, the classics, ethnography, geology, maths, medicine, metallurgy, meteorology, music, painting and zoology. Even Leonardo would have been impressed.
Over and over again, the triumphs of western culture turn out to have been local versions of broader trends, not lonely beacons in a general darkness and, if we think about culture in a broader, more anthropological sense, the West’s history again seems to be one example of a larger pattern rather than a unique story. For most of their existence, humans lived in small, egalitarian hunter-gatherer bands. After the Ice Age some hunter-gatherers settled down in villages, where they domesticated plants and animals; some villages grew into cities, with ruling elites; some cities became states and then empires and, finally, industrialised nations. No society has ever leaped from hunting and gathering to high technology (except under the influence of outsiders). Humans are all much the same, wherever we find them; and, because of this, human societies have all followed much the same sequence of cultural development. There is nothing special about the West.
Location, location, location
You may have noticed that all the historical examples I have mentioned – Italy, Greece, Israel, India, China – lie in a narrow band of latitudes, roughly 20-35° north, stretching across the Old World. This is no accident: in fact, it is a crucial clue as to why the West rules. Humans may all be much the same, wherever we find them, but the places we find them in are not. Geography is unfair and can make all the difference in the world.When temperatures rose at the end of the last Ice Age, nearly 12,000 years ago, global warming had massive consequences everywhere, but, as in our own times, it impacted on some places more than on others. In the latitudes between 20° and 35° north in the Old World and a similar band between 15° south and 20° north in the Americas, large-grained wild grasses like wheat, rice and teosinte (the ancestor of maize) and large, relatively tame mammals like wild goats, pigs and llamas went forth and multiplied in the warmer weather. This was a boon for humans, who ate them, but in the process of managing these other species – cultivating and tending the plants, herding and culling the animals – humans unintentionally domesticated them. We unwittingly altered their genomes so much that they became new species, providing us with far more food. Genetically modified organisms had been born. Potentially domesticable plants and animals existed outside the lucky latitudes, but they were less common. Indeed many places, such as large parts of Western Europe, sub-Saharan Africa and Australia, had no domesticable native species at all. The consequence, given that humans were all much the same, was predictable: the domestication of plants and animals – farming – began in the lucky latitudes long before it began outside them. This was not because people in the lucky latitudes were cleverer or harder-working; nature had just given them more to work with than people in other places and so the task advanced more quickly.
Nor was nature even-handed within the lucky latitudes. Some places, above all the so-called ‘Hilly Flanks’, which curve from what is now Israel through Syria, southern Turkey, northern Iraq and western Iran, were extraordinarily well endowed; China between the Yellow and Yangzi rivers and the Indus Valley in Pakistan were somewhat less so; Oaxaca in Mexico and the Andes in Peru somewhat less still. Consequently, the Hilly Flanks were the first to see farming firmly established (by 7500 bc); then came China and Pakistan (around 5500 bc); then Oaxaca and Peru (by 5000 bc); and then, over the next 7,000 years, most of the rest of humanity.
Farming spread from its original cores because it could support more people than hunting and gathering. The lives farmers led were often harder and their diets poorer than hunters’, but that was beside the point. The farmers’ weight of numbers, nastier germs (bred by crowding and proximity to domestic animals), more efficient organisation (required to keep order in larger villages) and superior weapons (necessary to settle constant quarrels) steadily dispossessed the hunters, who either took up farming in their own right or ran away.
The agricultural cores developed increasingly complex institutions as they expanded. Within 3-4,000 years of the start of farming (that is, by 3500 bc in Southwest Asia, 2500 bc in the Indus Valley, 1900 bc in China, 1500 bc in Mesoamerica and 1000 bc in the Andes) the first cities and states were taking shape. Within another few centuries, most had bureaucrats keeping written records and by 2,000 years ago a continuous band of empires, with populations in the tens of millions, stretched from the Mediterranean to China. By then imperialists and traders had exported agriculture, cities and writing beyond the lucky latitudes as far afield as cold, rainy Britain in the northwest and hot, humid Cambodia in the southeast. These great empires – the Han in the East, the Mauryan in India, the Parthian in Iran and Iraq and the Roman further west – had many similarities; but the biggest, richest and grandest by far was Rome, the descendant of Eurasia’s original, westernmost agricultural core in the Hilly Flanks.
Geography explains why farming first appeared towards the western end of the Old World’s lucky latitudes; and, if the West had simply held on to the early lead that nature’s unfairness had given it, geography would be the obvious explanation for why the West now dominates the world.
But that is not what actually happened. The West has not always been the richest, most powerful and most sophisticated part of the world during the last ten millennia. For more than 1,000 years, from at least 600 to 1700 ad, these superlatives applied to China, not the West.
After the fall of the Roman and Han empires in the early-to-mid first millennium ad, China was reunited into a single empire while the West remained divided between smaller states and invading Arabs. By 700, China’s capital at Chang’an had probably a million residents and Chinese literature was enjoying a golden age. Woodblock printing presses churned out millions of books, paid for with the world’s first paper money (invented in the 10th century). By 1000 an economic revolution had joined the cultural explosion: 11th-century China produced almost as much iron each year as the whole of Europe would be doing in 1700, on the eve of its Industrial Revolution. Chinese ironmasters produced so much, in fact, that they clear-cut entire forests to feed their forges, and – six centuries ahead of the West – learned to smelt their ores with coke.
For centuries, Chinese wealth and power dwarfed the West’s. Between 1405 and 1433, while little Portuguese caravels tentatively nosed down Africa’s west coast, Chinese emperors dispatched gigantic fleets across the Indian Ocean under the leadership of the eunuch admiral Zheng He (who, according to legend, was nearly three metres tall and 230 cm around the belly). Zheng’s flagship was on the same scale as its skipper. At 80 metres long, it was the largest wooden ship ever built. When Columbus set sail in 1492, his own flagship was shorter than Zheng’s mainmast and barely twice as long as the big man’s rudder. Columbus led three ships and 90 sailors; Zheng led 300 ships and 27,870 sailors. His fleet extracted tribute from the cities of India, visited Mecca and even reached Kenya, where today Chinese archaeologists are diving to locate wrecks of Zheng’s ships.
The power of place
The glories of medieval China seem, on the face of it, to disprove any geographical explanation for why the West now rules. After all, geography has not changed very much in the last 500 years.Or maybe it has. Geography shapes history, but not in straightforward ways. Geography does determine why societies in some parts of the world develop so much faster than others; but, at the same time, the level to which societies have developed determines what geography means.
Take, once again, the example of Britain, sticking out from Eurasia into the cold Atlantic Ocean. Four thousand years ago, Britain was far from the centres of action in the Nile, Indus and Yellow River valleys, where farming had been established for millennia, great cities had grown up and labourers by the thousand broke their backs to immortalise divine kings with pyramids and palaces. Distant Britain had few of these things, which spread only slowly from the Mediterranean core to the Atlantic periphery. Geography made Britain backward.
But, if we fast-forward to 400 years ago, the same geography that had once made Britain backward now gave the island nation wealth and power. Britain had been drawn into a vastly expanded and more developed core, which now had ships that could reliably cross oceans and guns that could shoot the people on the other side. Sticking out into the Atlantic, such a huge disadvantage 4,000 years ago, became a huge plus from the 17th century.
The first sailors to the Americas were Italians (Christopher Columbus was from Genoa; the famous ‘British’ explorer John Cabot, who reached Newfoundland in 1497, actually grew up as Giovanni Caboto, in Florence). They were soon shoved aside by the Portuguese, Spanish, British, French and Dutch – not because the Atlantic littoral produced bolder or smarter adventurers than the Mediterranean, but simply because Western Europe was closer to America.
Given time, the 15th century’s greatest sailors – the Chinese – would surely have discovered and colonised America too (in 2009 the Princess Taiping, a replica of a 15th-century junk, came within 20 miles of completing a Taiwan–San Francisco round trip, only to collide with a freight ship within sight of home). But in much the same way that geography had made it easier for people in the Hilly Flanks to domesticate plants and animals than for people in other parts of the world, it now again stacked the odds in the West’s favour. The trip from England to New England was only half as far as that from China to California. For thousands of years this geographical fact had been unimportant, since there were no ocean-going ships. But by 1600 it had become the decisive fact. The meaning of geography had changed.
This was just the beginning of the changes. In the 17th century a new kind of economy took shape, centred around the North Atlantic, generating massive profits and driving up wages in north-west Europe by exploiting the geographical differences round its shores. In the process, it enormously increased the rewards for anyone who could explain how the winds and tides worked, or measure and count in better ways, or make sense of the secrets of physics, chemistry and biology. Not surprisingly, Europeans began thinking about the world in new ways, setting off a scientific revolution; they then applied its insights to the societies they lived in, in what we now call the Enlightenment. Newton and Descartes were geniuses, but so too were Chinese scholars like Gu Yanwu (1613-82) and Dai Zhen (1724-77), who also spent lifetimes studying nature. It was just that geography thrust new questions on Newton and Descartes.
Westerners answered their new questions, only to find that the answers led to still newer questions. By 1800 the combination of science and the Atlantic economy created incentives and opportunities for entrepreneurs to mechanise production and tap into the power of fossil fuels. This began in Britain, where geography conspired to make these things easier than anywhere else; and the energy windfall provided by fossil fuel quickly translated into a population explosion, rising living standards and massive military power. All barriers crumbled. British warships forced China to open to western trade in 1842; Americans did the same in Japan 11 years later. The age of western rule had arrived.
The lessons of history
So what do we learn from all this history? Two main things, I think. First, since people are all much the same, it is our shared biology which explains humanity’s great upward leaps in wealth, productivity and power across the last 10,000 years; and, second, that it is geography which explains why one part of world – the nations we conventionally call ‘the West’ – now dominates the rest.Geography determined that when the world warmed up at the end of the Ice Age a band of lucky latitudes stretching across Eurasia from the Mediterranean to China developed agriculture earlier than other parts of the world and then went on to be the first to invent cities, states and empires. But as social development increased, it changed what geography meant and the centres of power and wealth shifted around within these lucky latitudes. Until about ad 500 the Western end of Eurasia hung on to its early lead, but after the fall of the Roman Empire and Han dynasty the centre of gravity moved eastward to China, where it stayed for more than a millennium. Only around 1700 did it shift westward again, largely due to inventions – guns, compasses, ocean-going ships – which were originally pioneered in the East but which, thanks to geography, proved more useful in the West. Westerners then created an Atlantic economy which raised profound new questions about how the world worked, pushing westerners into a Scientific Revolution, an Enlightenment and the Industrial Revolution. By the mid-19th century, the West dominated the globe.
But history did not end there. The same laws of geography continued operating. By 1900 the British-dominated global economy had drawn in the vast resources of North America, converting the USA from a rather backward periphery into a new global core. The process continued in the 20th century, as the American-dominated global economy drew in the resources of Asia, turning first Japan, then the ‘Asian Tigers’ and eventually China and India into major players.
Extrapolating from these historical patterns, we can make some predictions. If the processes of change continue across the 21st century at the same rate as in the 20th century, the economies of the East will overtake those of the West by 2100. But if the rate of change keeps accelerating – as it has done constantly since the 15th century – we can expect eastern global dominance as soon as 2050.
An age of rapid change
It all seems very clear – except for one niggling detail. The past shows that, while geography shapes the development of societies, development also shapes what geography means; and all the signs are that in the 21st century the meanings of geography are changing faster than ever. Geography is, we might even say, losing meaning. The world is shrinking and the greatest challenges we face – nuclear weapons, climate change, mass migration, epidemics, food and water supply – are all global problems. Perhaps the real lesson of history is that by the time the East overtakes the West, the question of why the West rules may have ceased to matter very much.Easy does it
Symbolic moves by the Bank of Japan
JAPAN’S economy has long been sickly. It now also has to contend with a stronger yen, thanks in part to loose monetary policy elsewhere in the rich world. That alone gave the Bank of Japan (BoJ) reason to act on October 5th. So too did criticism that it has not done enough to spur the economy, which has inspired Japanese politicians to suggest legislation to weaken the central bank’s independence.
Whatever its motivation, the BoJ this week took three modest but symbolic steps. First, it lowered its policy rate from 0.1% to a range between zero and 0.1%. That signals to the market, and to disenchanted politicians, that the BoJ cares. Second, the BoJ stated that it would maintain its virtual zero-rate policy until there was “medium- to long-term price stability”. Until deflationary Japan sees consumer prices rise by between 0% and 2% a year (with an unofficial aim of 1%), the long-standing near-zero policy rate will remain.
Third, the central bank said that it would consider establishing a programme to buy public- and private-sector assets from banks—including commercial paper, corporate bonds and perhaps even exchange-traded funds and Japan real-estate investment trusts. Since the financial crisis Japan has continued to accept financial instruments as collateral in order to pump money into the system, but has not bought the assets. The effect would be to restart the policy of quantitative easing that Japan used to claw out of its banking crisis between 2001 and 2006. The initial amount under consideration is about ¥5 trillion ($60 billion), ¥3.5 trillion of which is for public-sector debt. That is on top of a sum of ¥30 trillion already budgeted for BoJ loans to banks.
The market had expected some form of easing but had not imagined a whittling of interest rates, however symbolic. The Nikkei 225 Stock Average hit a two-month high on October 6th and bonds rose sharply. From a political standpoint, too, the moves were a success. The finance minister, Yoshihiko Noda, said he expected the actions to weaken the yen and improve the economy. “Very timely,” gushed Banri Kaieda, the economics minister.
Whether the BoJ’s actions will have any lasting impact on the economy is another matter. The change in the policy rate does not mean much in practice: it merely reinforces the message that low rates are here to stay for a while. The asset-purchase programme is as yet too small to matter. An expected round of fresh quantitative easing by America’s Federal Reserve later this year will put more upward pressure on the yen, which on October 7th reached a 15-year high against the dollar, about where it was before last month’s currency intervention. Still, the BoJ seems willing to respond to a worsening economic climate and to political heat. The psychological boost that represents should not be discounted.
Whatever its motivation, the BoJ this week took three modest but symbolic steps. First, it lowered its policy rate from 0.1% to a range between zero and 0.1%. That signals to the market, and to disenchanted politicians, that the BoJ cares. Second, the BoJ stated that it would maintain its virtual zero-rate policy until there was “medium- to long-term price stability”. Until deflationary Japan sees consumer prices rise by between 0% and 2% a year (with an unofficial aim of 1%), the long-standing near-zero policy rate will remain.
Third, the central bank said that it would consider establishing a programme to buy public- and private-sector assets from banks—including commercial paper, corporate bonds and perhaps even exchange-traded funds and Japan real-estate investment trusts. Since the financial crisis Japan has continued to accept financial instruments as collateral in order to pump money into the system, but has not bought the assets. The effect would be to restart the policy of quantitative easing that Japan used to claw out of its banking crisis between 2001 and 2006. The initial amount under consideration is about ¥5 trillion ($60 billion), ¥3.5 trillion of which is for public-sector debt. That is on top of a sum of ¥30 trillion already budgeted for BoJ loans to banks.
The market had expected some form of easing but had not imagined a whittling of interest rates, however symbolic. The Nikkei 225 Stock Average hit a two-month high on October 6th and bonds rose sharply. From a political standpoint, too, the moves were a success. The finance minister, Yoshihiko Noda, said he expected the actions to weaken the yen and improve the economy. “Very timely,” gushed Banri Kaieda, the economics minister.
Whether the BoJ’s actions will have any lasting impact on the economy is another matter. The change in the policy rate does not mean much in practice: it merely reinforces the message that low rates are here to stay for a while. The asset-purchase programme is as yet too small to matter. An expected round of fresh quantitative easing by America’s Federal Reserve later this year will put more upward pressure on the yen, which on October 7th reached a 15-year high against the dollar, about where it was before last month’s currency intervention. Still, the BoJ seems willing to respond to a worsening economic climate and to political heat. The psychological boost that represents should not be discounted.
Global Real Estate prices
Global Real Estate prices
Floor to ceiling
Our latest round-up shows that prices are on the rise in most markets

Asia’s price rises lead the way, as they did when the data were last published in July. Singapore, Hong Kong and Australia boast the gaudiest year-on-year price increases, even if the rate of appreciation is down a bit from the summer. Real Estate prices in China rose by 9.1% in the year to September, compared with a 12.4% rise in May. That is still too fast for the government, which unexpectedly raised interest rates on October 19th and has outlined more measures to cool the market in recent weeks, including higher down-payment requirements and the introduction of a property tax in some cities.
My analysis of “fair value” in real estate, which is based on comparing the current ratio of real estate prices to rents with its long-run average, suggests that China has less to worry about than the likes of Australia, which is again the most overvalued of the markets we track. That makes it all the more surprising that Australia’s central bank opted not to increase its benchmark interest rate this month.
Related items
Europe shows a familiar split between core countries and peripheral ones. Ireland, Spain and Italy continue to suffer year-on-year price declines; German and French homes have shown big gains in value over the past year, a particular turnaround for France since our previous round-up. The British housing sector’s talent for defying gravity may be on the wane. The pace of annual appreciation in the country’s property market has slowed over the summer. British housing is still overvalued—outright falls may loom.
check out this interactive Real Estate-price tool that compares global real estate data, now including price-to-rent ratiosThursday, October 21, 2010
I Think I'm Turning Japanese
I Think I'm Turning Japanese
A fall from grace
At one point in the late 1980s, there was a square block of real estate in downtown Tokyo, near the Imperial Palace, that was worth more than all of California.
The country was booming...
The Japanese led the world in electronics. Every teenager had to own a Sony Walkman. The Toyota Supra and four wheel drive pickup were the two bests car of the decade.
Japanese investors bought up American icons like Rockefeller Center, Columbia Pictures, and the Pebble Beach Golf Course.
Along the way, Japan also created the 100-year mortgage and had an unassailable cadre of elites that ran the banks, the government, and the corporations. The country was run by one political party — the Liberal Democratic Party — from 1955 to 2009.
Stimulating death
This political party's main platform was "spend money and create growth."
It tried stimulus after stimulus... They've built bridges in mountainous villages where few people live... They've forced banks to take on massive debt, and shuffled other debt to different banks.
And after twenty years of spending, Japan has $9.7 trillion in public debt — twice its GDP in 2009. They still have no growth.
A few months ago, in the thick of the Greece debt crisis, the Prime Minister warned the Japanese Parliament, “It is difficult to sustain a policy that relies too heavily on issuing debt. As we have seen with the financial confusion in the European Community stemming from Greece, our finances could collapse if trust in national bonds is lost and growing national debt is left alone.”
Death spiral
Japan has been in a deflationary spiral for 20 years.
The nation's housing bust has still not hit bottom.
People hold onto money because they know what they want to buy will be cheaper later.
Core consumer prices fell 1.0 percent in August, marking 18 consecutive months of decline.
And to top it off, they just aren't making any more Japanese. Check out the population pyramid:

As you can see during the “Economic Miracle” period from 1950 to 1990, Japan was youthful, ambitious, and full of vigor.
Despite what economists would have you believe, it still takes people to make stuff.
Right now, the birth rate in Japan is 1.34 — well below the replacement level.
Furthermore, Japanese culture isn't accommodating to foreign immigration. The fact is that Japan's workforce is shrinking at the same time its population of retirees is growing.
And to add to our Japan bashing, I give you the Nikkei 225 Index:

After hitting 40,000 in 1990, the NI225 has been one dead cat bounce after another. It's looking like it might bottom around 5,000.
The Bank of Japan forecast its economy would grow 2.6 percent in the fiscal year to March 2011, and 1.9 percent the following year.
The yet the yen goes up
With everything seemingly going against Japan, why is it that their currency is going through the roof?
Below is the U.S. dollar/Japanese yen conversion chart.
I like to flip currency charts over in my mind to get a good idea of them. The drop means that you can buy more dollars with your yen. In other words, the yen has gone up 13 points in three months. (Note the doji at the bottom of the trend.)

That's a huge deal in currency markets, and Japanese exporters like Toyota don't like it — the higher yen makes exports expensive.
President of Toyota Motors Akio Toyoda recently said, “Toyota Motor Corp (TM) is not considering hastily shifting production overseas despite the yen’s strengthening against the dollar.”
The automaker went on to say, “Theoretically speaking, Toyota cannot afford to compete with its rivals.”
This was a clear shot at the government to do something about the yen...
A large group of legislators from the Democratic Party of Japan said the central bank "should carry out drastic monetary easing."
Taking the hint, the government is starting to act. Japan's central bank has launched a 5 trillion yen (or USD$60 billion) effort to buy a wide range of debt — including government bonds, corporate IOUs, and real estate investment trust funds, among others. This is just the first step in Japan's quantitative easing.
It is obvious that Japan has taken the worst hit as the rest of the world goes into a currency war. Japan understands this, and will attempt to reverse the cycle by destroying its own currency and creating inflation.
The obvious trade here is to short the yen.
In other words, if the yen goes down, your investment goes up twice as much.
If this is too confusing, think of it this way: The entire world — with the exception of China — is hell-bent on destroying their own currencies in an effort to inflate away debt and increase exports.
This means that things that have inherent value will go up, especially in dollar terms.
There is no subtler, surer means of overturning society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a way that not one man in a million is able to diagnose.
At one point in the late 1980s, there was a square block of real estate in downtown Tokyo, near the Imperial Palace, that was worth more than all of California.
The country was booming...
The Japanese led the world in electronics. Every teenager had to own a Sony Walkman. The Toyota Supra and four wheel drive pickup were the two bests car of the decade.
Japanese investors bought up American icons like Rockefeller Center, Columbia Pictures, and the Pebble Beach Golf Course.
Along the way, Japan also created the 100-year mortgage and had an unassailable cadre of elites that ran the banks, the government, and the corporations. The country was run by one political party — the Liberal Democratic Party — from 1955 to 2009.
Stimulating death
This political party's main platform was "spend money and create growth."
It tried stimulus after stimulus... They've built bridges in mountainous villages where few people live... They've forced banks to take on massive debt, and shuffled other debt to different banks.
And after twenty years of spending, Japan has $9.7 trillion in public debt — twice its GDP in 2009. They still have no growth.
A few months ago, in the thick of the Greece debt crisis, the Prime Minister warned the Japanese Parliament, “It is difficult to sustain a policy that relies too heavily on issuing debt. As we have seen with the financial confusion in the European Community stemming from Greece, our finances could collapse if trust in national bonds is lost and growing national debt is left alone.”
Death spiral
Japan has been in a deflationary spiral for 20 years.
The nation's housing bust has still not hit bottom.
People hold onto money because they know what they want to buy will be cheaper later.
Core consumer prices fell 1.0 percent in August, marking 18 consecutive months of decline.
And to top it off, they just aren't making any more Japanese. Check out the population pyramid:

As you can see during the “Economic Miracle” period from 1950 to 1990, Japan was youthful, ambitious, and full of vigor.
Despite what economists would have you believe, it still takes people to make stuff.
Right now, the birth rate in Japan is 1.34 — well below the replacement level.
Furthermore, Japanese culture isn't accommodating to foreign immigration. The fact is that Japan's workforce is shrinking at the same time its population of retirees is growing.
And to add to our Japan bashing, I give you the Nikkei 225 Index:

After hitting 40,000 in 1990, the NI225 has been one dead cat bounce after another. It's looking like it might bottom around 5,000.
The Bank of Japan forecast its economy would grow 2.6 percent in the fiscal year to March 2011, and 1.9 percent the following year.
The yet the yen goes up
With everything seemingly going against Japan, why is it that their currency is going through the roof?
Below is the U.S. dollar/Japanese yen conversion chart.
I like to flip currency charts over in my mind to get a good idea of them. The drop means that you can buy more dollars with your yen. In other words, the yen has gone up 13 points in three months. (Note the doji at the bottom of the trend.)

That's a huge deal in currency markets, and Japanese exporters like Toyota don't like it — the higher yen makes exports expensive.
President of Toyota Motors Akio Toyoda recently said, “Toyota Motor Corp (TM) is not considering hastily shifting production overseas despite the yen’s strengthening against the dollar.”
The automaker went on to say, “Theoretically speaking, Toyota cannot afford to compete with its rivals.”
This was a clear shot at the government to do something about the yen...
A large group of legislators from the Democratic Party of Japan said the central bank "should carry out drastic monetary easing."
Taking the hint, the government is starting to act. Japan's central bank has launched a 5 trillion yen (or USD$60 billion) effort to buy a wide range of debt — including government bonds, corporate IOUs, and real estate investment trust funds, among others. This is just the first step in Japan's quantitative easing.
It is obvious that Japan has taken the worst hit as the rest of the world goes into a currency war. Japan understands this, and will attempt to reverse the cycle by destroying its own currency and creating inflation.
The obvious trade here is to short the yen.
In other words, if the yen goes down, your investment goes up twice as much.
If this is too confusing, think of it this way: The entire world — with the exception of China — is hell-bent on destroying their own currencies in an effort to inflate away debt and increase exports.
This means that things that have inherent value will go up, especially in dollar terms.
Wednesday, October 20, 2010
Japan M&A Boom Will Lead Country Out of Deflation, Says Freeze
Japan M&A Boom Will Lead Country Out of Deflation, Says Freeze
Japanese mergers and acquisitions are set to increase and will help steer the country out of deflation, said Curtis Freeze, chairman of Honolulu-based Prospect Asset Management Inc.
There will be at least 100 transactions with a value of $1 billion for both inbound and outbound deals in the next few years, said Freeze, who is also chief executive officer of Gro- BeLS Co., a Tokyo-based real-estate firm. That will create opportunities for investors in the world’s third-largest economy, he said at the Hedge Funds Asia Summit hosted by Bloomberg Link in Hong Kong today.
“Japan’s best day is yet to come,” Freeze said. “There is going to be more activity” as Japanese companies look to buy firms at home and Asian companies look to access capacities of Japanese firms, creating opportunities for investors, he said.
“Japan is the world’s most cash-rich country,” Freeze said. “And that’s exciting.”
The value of takeovers and asset sales involving Japanese companies worldwide has reached $93 billion this year, according to data compiled by Bloomberg. That compares with $128 billion in 2009 and $153 billion in 2008, the data show.
The Bank of Japan earlier this month pledged to keep its benchmark interest rate at “virtually zero” until deflation has ended and created a 5-trillion yen ($61 billion) asset- purchase fund to buy government debt and assets including exchange-traded funds and real-estate investment trusts.
Japan’s gross domestic product may shrink for the first time in more than a year in the three months ended Dec. 31, according to a survey by the government-affiliated Economic Planning Association. The economy grew at a 1.5 percent pace in the second quarter, half the pace of the first quarter of 2010.
The catalyst for Japan defeating deflation will be “change in control” amongst Japanese firms rather than government policies, Freeze said. As aging owners of Japanese firms are replaced, their successors will look for new business strategies, Freeze said.
Japanese mergers and acquisitions are set to increase and will help steer the country out of deflation, said Curtis Freeze, chairman of Honolulu-based Prospect Asset Management Inc.
There will be at least 100 transactions with a value of $1 billion for both inbound and outbound deals in the next few years, said Freeze, who is also chief executive officer of Gro- BeLS Co., a Tokyo-based real-estate firm. That will create opportunities for investors in the world’s third-largest economy, he said at the Hedge Funds Asia Summit hosted by Bloomberg Link in Hong Kong today.
“Japan’s best day is yet to come,” Freeze said. “There is going to be more activity” as Japanese companies look to buy firms at home and Asian companies look to access capacities of Japanese firms, creating opportunities for investors, he said.
“Japan is the world’s most cash-rich country,” Freeze said. “And that’s exciting.”
The value of takeovers and asset sales involving Japanese companies worldwide has reached $93 billion this year, according to data compiled by Bloomberg. That compares with $128 billion in 2009 and $153 billion in 2008, the data show.
The Bank of Japan earlier this month pledged to keep its benchmark interest rate at “virtually zero” until deflation has ended and created a 5-trillion yen ($61 billion) asset- purchase fund to buy government debt and assets including exchange-traded funds and real-estate investment trusts.
Japan’s gross domestic product may shrink for the first time in more than a year in the three months ended Dec. 31, according to a survey by the government-affiliated Economic Planning Association. The economy grew at a 1.5 percent pace in the second quarter, half the pace of the first quarter of 2010.
The catalyst for Japan defeating deflation will be “change in control” amongst Japanese firms rather than government policies, Freeze said. As aging owners of Japanese firms are replaced, their successors will look for new business strategies, Freeze said.
Sunday, October 17, 2010
Leon Ware ;Carleen Anderson & Michael Franti - "Inside My Love"
Leon Ware & Carleen Anderson - Inside My Love (Live in Amsterdam, 2001)
"Inside My Love" written by...Minnie Ripperton, Richard Rudolph and Leon Ware(along with several other tunes) in 1975 and it's featured on Minnie's "Adventures In Paradise".
Here is a more recent version of "Inside my Love" with the J.Dilla touch and Production and a brilliant hip hop Rap fusion scratch mix ending by Michael Franti who is so in the groove and kool his contribution works soooo well it rocks it.
Carleen Anderson,s voice is so beautiful...no mistake leon chose her to perform with him...michael franti catches the BIG vibe too...like i said, perfect...wish i could have been there.
Minnie would've been So proud!!!!
"Inside My Love" written by...Minnie Ripperton, Richard Rudolph and Leon Ware(along with several other tunes) in 1975 and it's featured on Minnie's "Adventures In Paradise".
Here is a more recent version of "Inside my Love" with the J.Dilla touch and Production and a brilliant hip hop Rap fusion scratch mix ending by Michael Franti who is so in the groove and kool his contribution works soooo well it rocks it.
Carleen Anderson,s voice is so beautiful...no mistake leon chose her to perform with him...michael franti catches the BIG vibe too...like i said, perfect...wish i could have been there.
Minnie would've been So proud!!!!
MPS Jazzin' The Black Forest
In the film's ninety minutes there are many memorable passages, but one of the most enlightening is archival footage of Oscar Peterson and his trio arriving at Brunner-Schwer's house after a concert performance. What started as a brief bit of fun turned into a lengthy house concert, and while it's not all captured on film, one can sense Peterson's comfort in the environment and appreciate just how much that sense of comfort contributed to the creative process. There's also some exciting, albeit brief, concert footage of Mangelsdorff with Jaco Pastorius and Alphonse Mouzon that would ultimately result in the album Trilogue - Live! (MPS, 1976).
Albert Mangelsdorff, Alphonse Mouzon, Jaco Pastorius
Friday, October 15, 2010
Investors Eye Tokyo Property Sale

- Bloomberg News
- Tokyo in view: A forthcoming commercial property sale is attracting interest from elsewhere in Asia.
Japan Tobacco Inc., the world’s third-largest tobacco maker, is in process of selling three mixed-use buildings in Tokyo, which could fetch up to 100 billion yen, according to market observers. The site is called Shinagawa Seaside Forest and was once home to a JT plant. JT is selling three of its office buildings in the site, and the tobacco maker will sell all three as a package or each building separately, depending on demand.
This is the first big commercial real estate deal Tokyo has seen since the collapse of Lehman Brothers. It is being closely watched by industry observers and bankers, to see if the property market is showing a sign of the recovery.
Japanese real estate’s supply-demand balance has eroded since the financial crisis, and the nation’s land prices have plummeted for nearly a decade.
But what makes this deal really different is that Asian investors are showing a keen interest in the sale. In the past, most foreign real estate investment flowing into Japan came from Western private equity funds or investment banks.
“There is a possibility that money from a pension fund or a sovereign fund from Asia, such as Taiwan, Korea, Hong Kong, Singapore or mainland China, will be poured into the Japanese market,” said Takashi Hashimoto, an analyst at Barclays Capital analyst, citing Asian appetite for the JT deal.
A JT spokesman said bidding is scheduled to take place on November 25, and the company expects an agreement will be reached in January
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