Japan Government Says Economy Back In Deflation

Reuters ^ | 11-20-2009 | Rolfe Winkler

[blam]

Japan Government Says Economy Back In Deflation

Rolfe Winkler
Fri Nov 20, 2009 1:03am EST

TOKYO, Nov 20 (Reuters) - Japan's government said for the first time since 2006 that the economy was back in deflation, warning of the risk that price falls may pressure a fragile economy barely out of its worst recession in decades.

The announcement came as the Bank of Japan kept interest rates near zero and upgraded its economic assessment, despite grumblings from the government, which is worried about price falls and the risk of another recession.

"Recent price developments show that the Japanese economy is in a mild deflationary phase," the Cabinet Office said in its monthly economic report.

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[TSgt]

[The Comedian]

[Candor7]

The Japan economy is in bad shape. The private High School where my son teaches over there is closing its doors because they do not have enough students who can pay private tuition. And this place is a leading institution, with decades o f successful history. That means over 200 teachers, who dedicated their lives to that school will have no job.

The Japanese people are hunkering down and getting ready for a depression.This may not be apparent in places like Tokyo, Osaka, or Nagoya, but out in the smaller cities and countryside, the writing is on the wall.