Japan faces political and financial crisis

It's lucky for Japan that India is in the throes of a government corruption scandal that has grabbed headlines around the world. Otherwise, the ailing Japanese economy and the impending political demise of Prime Minister Yoshiro Mori would be the top international story today.
When the world's second-largest economy is in trouble and when that nation's leader has so fallen out of favor with his people that his approval rating hovers around 5 percent, the words "major crisis" apply. Indeed, Prime Minister Mori is expected to resign soon, but to many of his countrymen, that isn't soon enough.
Opposition parties in Japan argue that his lame-duck status has created a political vacuum, and they have submitted two no-confidence motions against him. Mori fended off the latest attack on Wednesday when Parliament rejected a censure motion.
But there are rumblings from members of his own Liberal Democratic Party, who are pushing for a party presidential election next month. They worry that unless Mori is replaced soon, his unpopularity could turn voters against the party when Parliamentary elections are held in July.
Summit meetings: Yet, the prime minister insists on staying in office and even intends to hold summit meetings with President Bush and Russian President Putin. That's irresponsible. Given his status as a short-termer and the fact that many in Japan blame his flawed leadership for the current economic crisis, he certainly won't be talking to Bush and Putin from a position of power.
What the two world leaders need to hear is that the government has a solution to the current economic problem. On Friday, Mori's government made it official: Japan's economy is in a state of mild deflation. That has resulted in the recovery from a decade-long slowdown being stalled.
Such news does not bode well for Japan's largest trading partner, the United States. Even more disturbing is an admission from Economy Minister Taro Aso that there is no consensus yet on what should be done to stop the bleeding. The level of pessimism is so high in Japan today, that investors are not borrowing money -- even though interest rates are at rock bottom.
Against this backdrop, the question that must be asked is this: What is Mori hoping to accomplish by staying in office?
The prime minister, who was selected by ruling party leaders last April to replace Keizo Obuchi, who suffered a fatal stroke in office, says he wants to direct the passage of this year's budget. Talk about having a political blindspot.