2nd June 2010 04:39
Link to Post #1
Japan's PM Yukio Hatoyama Quits, as Fulford has been saying this past weeks.
"Meanwhile, in Japan secret government sources continue to say the Prime Minister Hatoyama will probably resign this month and be replaced by Finance Minister Naoto Kan. I know Kan quite well and am quite sure he is not a Federal Reserve Board puppet. However, it remains to be seen if he has what it takes to reboot Japan’s financial system."
"Meanwhile, in Japan the tenure of Prime Minister Hatoyama is expected to end in May, according to Japanese secret government sources. The new Prime Minister is expected to be Naoto Kan. However, the real power is expected to reside with power broker Ichiro Ozawa and ex-police honcho Kamei Shizuka."
"In Japan, meanwhile, the battle for control of the world’s greatest creditor nation continues unabated behind the scenes. The most likely scenario now is for Prime Minister Hatoyama and power-broker Ozawa to be replaced in May by a cabinet led by Naoto Kan."
(Reuters) - Japanese Prime Minister Yukio Hatoyama said on Wednesday he and his powerful party No. 2 would resign after a slide in the polls threatened their party's chances in an election expected next month.
WORLD | JAPAN
The yen sank to a two-week low against the dollar after Hatoyama became the fourth Japanese leader to leave office in a year or less, with some investors worried that political instability would make Japan's weak economy more dependent on the Bank of Japan's easy monetary policy.
Calls built up in Hatoyama's Democratic Party of Japan (DPJ) for him to step down to revive the party's fortunes ahead of an election for the upper house of parliament expected on July 11 that it must win to smooth policymaking.
With tears in his eyes, Hatoyama told party lawmakers that he and party secretary-general Ichiro Ozawa would resign.
"In order to revitalize our party, we need to bring back a thoroughly clean Democratic Party. I would like to ask your cooperation," Hatoyama said.
Hatoyama's ratings slid on voter doubts about his leadership, while the old-style image of Ozawa, seen as pulling strings behind the scene, had also eroded public support.
Analysts have tipped outspoken Finance Minister Naoto Kan as the frontrunner to replace Hatoyama, who quits after just eight months on the job. A new leader will be chosen on Friday, in a few days, a party official said.
The latest political turmoil, including the departure of a tiny leftist party from the ruling coalition, has distracted the government as it thrashes out a plan to cut huge public debt and a strategy to engineer growth despite a fast-aging population.
"Hatoyama's resignation may cause delays in the scheduled releases this month of the government's growth strategies and fiscal discipline targets. Whoever replaces Hatoyama would need to work them out before an upper house election, or else disappoint voters," said Hirokata Kusaba, an economist at Mizuho Research Institute.
"Things could not get any worse after Hatoyama quits, given the current deadlock in many important issues."
The yen sank to 91.78 per dollar from around 91.10 before the news but that weakness helped boost the Nikkei share average, which is heavily populated by big Japanese exporters. Bond futures edged higher.
Full article follow link on the top.
2nd June 2010 07:30
Link to Post #2