Japan Oct. Bankruptcies: Ideas Later.

Japan logs 934 bankruptcies in Oct., year's 3rd-highest tally

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TOKYO (Kyodo) -- Corporate bankruptcies in Japan totaled 934 in October, the third-highest monthly tally this year, as rising prices and labor costs weighed on businesses, a credit research company said Tuesday.

The number of failures, involving debts of at least 10 million yen ($63,000), fell 3.2 percent from a year earlier for the second straight monthly decline, according to Tokyo Shoko Research.

Total liabilities rose 1.4 percent from a year earlier to 129.3 billion yen.

Major toy retailer Toys R Us Japan filed for court protection from creditors with the largest liabilities for the reporting month.

Failures with liabilities of less than 100 million yen made up 76.1 percent of the total.

Labor shortages were linked to 50 bankruptcies, with 32 of them attributing their failures to rising personnel costs.

"Companies that implement wage increases beyond their capabilities are facing deteriorations in their financial conditions," a Tokyo Shoko Research official said.

Inflation-related failures came to 80 with the weak yen adding to the cost of imported raw materials.

By industry, services, including restaurants, recorded the most bankruptcies at 342. Transportation saw a 2.7 percent increase to 38 as driver shortages took a toll.

Article source:  https://mainichi.jp/english/articles/20261110/p2g/00m/0bu/037000c

Japan Sept. Current Account: Ideas Later.

Japan logs current account surplus of 2.37 trillion yen in Sept.

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TOKYO (Kyodo) -- Japan posted a current account surplus of 2.37 trillion yen ($15 billion) in September, the Finance Ministry said Tuesday.

The surplus in September decreased by 2 trillion yen on year, reflecting a decline in dividend receipts from overseas subsidiaries, which contributed to a narrower surplus in the primary income balance.

In the first half of fiscal 2026, covering April through September, the current account surplus amounted to 17.15 trillion yen, down 0.4 percent from the same period last year, according to the ministry's preliminary report.

Primary income, which reflects earnings from overseas investments, fell 27.1 percent to 3.55 trillion yen in September, the report showed.

The goods trade balance posted a deficit of 187.5 billion yen, compared with a surplus of 247 billion yen a year earlier.

Exports rose 12.8 percent to 10.73 trillion yen, while imports increased 17.8 percent to 10.92 trillion yen, driven by higher crude oil prices amid tensions in the Middle East.

The current account balance is one of the widest gauges of international trade.

Article source:  https://mainichi.jp/english/articles/20261110/p2g/00m/0bu/029000c

Japan Sept. Household Spending: Ideas Later.

Japan's household spending in Sept. falls 6.8% on year

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TOKYO (Kyodo) -- Japan's household spending in September fell a real 6.8 percent from a year earlier, declining for the 10th consecutive month, as adverse weather dampened consumption across a wide range of sectors, government data showed Tuesday.

The latest data marked the biggest drop since September 2020, when spending sank 10.2 percent due to the COVID-19 pandemic, the Ministry of Internal Affairs and Communications said.

The decline widened significantly from 3.1 percent in August. Households of two or more people spent an average of 289,536 yen ($1,830), according to the ministry.

By category, outlays for energy and water bills declined 10.5 percent from 2025, with electricity expenses dropping 11.9 percent as lower temperatures than a year earlier reduced air conditioning use, the ministry said.

Spending on food and beverages decreased 2.5 percent, marking a fourth consecutive month of decline, as consumers opted for cheaper rice, while higher prices and weather conditions weighed on beverage spending.

Furniture and home appliance expenditures saw a 6.4 percent decline, partly weighed down by fewer purchases of air conditioners due to bad weather conditions. Outlays on clothing and footwear fell 3.6 percent as heavy rains and typhoons also discouraged people from going out and making purchases.

Despite such bad weather conditions, spending on dining increased 2.3 percent, aided by a five-day holiday, according to the ministry.

The Pacific side of eastern Japan observed its highest amount of rain for September since data became available in 1946, as well as the least sunlight for the month, according to the Japan Meteorological Agency.

"It remains unclear from this month's data whether rising prices are prompting consumers to cut back on spending, as the impact of adverse weather appears to have been significant," a ministry official said.

The data is a key indicator of private consumption, which accounts for more than half of the country's gross domestic product.

The average monthly income of salaried households of at least two individuals rose a real, or inflation-adjusted, 0.9 percent to 528,074 yen, the ministry said.

Article source:  https://mainichi.jp/english/articles/20261110/p2g/00m/0bu/027000c

Korean Economy? Update Nov. 10, 2026.

Korea's economy is booming. Why isn't President Lee's popularity?

Ideas

Of course this sounds good for the South Korean economy but it doesn't tell the real story of what is happening in the everyday lives of middle class South Koean families.

The economy might grow 4 percent, if being positive, but again its not trickling down to the rest of soceity as maybe only the Chaeblol, or large company workers, are seeing the benefits of the strong economic growth.

Yes, again, being positive per capital gross national income might surpass $40,000 for the first time but only about 40 percent of households will each this level and the other 60 percent might be much lower and they are in no way seeing any of the benefits from the boom that is taking place with Samsung or SK Hynx these days.

But again the South Korean economy, as it is now, doesn't seem to represent the bulk of Korean society as just a minority are really benefitting from the booming economy now. But unfortunately that's the way it's been in South Korea for a very long time.

President Lee or any other world leader doesn't control what is always going on in an economy, and not to say he doesn't share some blame but an economy, for the most part, is sometimes out of the control of the President or even a Prime Minister.

And of course society or normal everyday middle class citizens feel they need to have someone to blame so it's easy to blame the President instead of for example the CEO of Samsung.

What is hardly ever reported in the news, in every country, or many countries, South Korea now has a two-tiered society and even maybe a three-tiered society of the haves, being the Chaebol families and the professonal class, the have-nots being the middle class families of some mid-size companies and maybe government workers, and then there is unfortunately, those working for the small companies and even the fixed income groups who are at the very bottom of society as some have to scrape by everyday just to survive.

Some might say how can this be when Seoul looks like world-class high-tech society where it seems everything looks new and all the energy going on there but in reality that is only at the surface as you have to look deeper to see what is really going on in South Korea.

Yes the semiconducor boom has lifted exports like the car industry did for a very long time, but in reality, South Korea only has a handfull of economic driver exports that it can rely on and if, for example the AI boom or semiconductor boom or demand were to turn south it potentially could have devastating affects for the South Korean economy.

And yes, it seems there is always demand of jobs in the large Chaebol companies but recently those jobs are slowing or hiring is slowing down as for example, again, everyone wants to work for the Samsungs, the Hyudais or other large Chaebol companies that pay huge salaries compared what midsize companier or small companies pay.

Yes inflation has been a major concern for many households as their budget might be constrained by huge housing costs, huge credit card debt, huge month spending on Hagwowns, or after school education if they have children and the list goes on and on and unforuately many households are heavily in debt in South Korea which means they have little to spend in the economy overall. 

And yes of course income growth has been strong but when you add in all of the expense constraints that many families have to deal with consumer spending is not nearly where it could or should be in South Korea.

And to be fair, just as the past US midterm elections might have shown, whether true or not, it seems Presidents are held accountable for the economic circumstances going on in a country these days.

So it seems the affordability situation, which was a major issue in the US midterm elections is a major factor in how citizens in South Korea feel these days.

But to be fair, for the most part, the stock market in most countries is not a major part of the real lives of most families in a society as its not a major part of most lives in South Korea even though 14.42 million retail investors seems like a lot how many of them might be foreign investors compared to those in South Korea.

And the government, whomever is it or where it is not responsible for who invests and who doesn't and and or falling share prices and that is part of what a market economy is and there are going to those who feel good and those who not feel good and that is not part of what a government does or manages.

Again, its not the South Korean governments fault when a stock market increases or decreases especially related to world or global events as they, again, have no control over who buys or sells in the stock market and again they should not be held accountable for it even though the media seesms to likes the fan the flames and turn into a crisis situation which often happens in South Korea.

And in conclusion, yes South Korea is a booming economy right now and has risen from the ashes to being a major high-tech soceity or it seems to be but if you look deeper you see it really is a two-tiered society of haves and have-nots being the Chaebol, or large company and professional workers at the top and then there is everyone else in socitey being the have-nots who are struggling with all of the constraints that were mentioed above and it doesn't seem like its going to change anytime soon.

And having lived and worked in South Korea for 25 years, I've seen it all.

Have a nice day!

Article source:   https://www.koreatimes.co.kr/economy/20261110/koreas-economy-is-booming-why-isnt-president-lees-popularity

Japan Sept. Real Wages: Updated Nov. 7, 2026.

Japan's real wages rise 2.2% in Sept., up for 9th consecutive month

Ideas

Real wages are far more important than nominal wages as real wages show how much purchasing power a consume has compared to nominal wages which include inflation and doesn't give a true measure of a consumers' earnings.

For Japanese households real wages and wage growth is very important as inflation has been a little too high for many households and their disposable income have been less than normal to spend in the economy.

Nominal wages when seen, as is, looks good but when you strip away the inflation part they aren't that good for a household or consumer.

And lets be very clear, most of these reports tend to focus on the upper middle class that work for the large name-brand companies with good wages and usually don't feel the affects of inflation that much compared to the middle or lower middle class, that work for small and mid-size companiea as there is a 20 percent wage difference between the large and small companies in Japan.

Up until maybe 2023, Japanese companies were really not giving wage increases, or very little wage increases but since that time, as they just kept profits to themselves and or for shareholders only, but due to the Japanese government urging to help improve the economy companies have been increasing wages the last few years.

At the same time, consumer spending is still less than it should be as consumers and households, for the most part, are still reluctant spend like they should or could due to inflation and other factors in the economy.

Yes, consumer prices were at 3.4 percent a year earlier but are beginning to trend down but it's taken a while for consumers and households in Japan to really feel the affects of less inflation and at 2.4 percent it might still be too high for many in the middle class, and especially the lower middle class, and for those on fixed incomes in Japan.

And finally wage growth has outpaced inflation but again some or many consumers are not feeling it just yet and maybe their disposable income is still lagging too much and hasn't got up what the less inflation effect yet.

Yes, wage increases in 2025, while better than nothing, we're still less than inflation and again cosumers and households just didn't feel good just yet and wage needed to increase more and or inflation needed to come down even more for consumers to feel good about spending in the economy again.

Wages in Japan are much lower than in the US and maybe the EU too but Japanese companies make up for it with two bonuses every year one in the spring around the May Golden Week period and the other in December or in Japan the end of year holiday period, which can usually lasts a week or more.

The bonuses are used as a flexibilty tool for many companies as they can keep salaries or wages low and then depending on how the company does, the rest of the year and give higher than normal bonuses, if the company does good or reduce the bonuses if they company has a not to good year and that way salaries remain the same year round.

Have a nice day!

Article source:   https://mainichi.jp/english/articles/20261106/p2g/00m/0bu/029000c

Editorial BOJ and inflation: Ideas Later.

Editorial: Japan's 2% inflation calls expansionary fiscal policy into question

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The Bank of Japan (BOJ) has announced that the nation's underlying inflation rate, which excludes temporary fluctuations, has reached its 2% target. It took 13 years to achieve the target after it was set in 2013. This can be seen as a milestone marking the Japanese economy's shift into an inflationary phase after a prolonged struggle with deflation.

The target was set at the urging of then Prime Minister Shinzo Abe's second administration, which pledged an early exit from deflation. The BOJ pursued unprecedented monetary easing centered on massive purchases of government bonds and a negative interest rate policy, but for years it remained unable to reach the target.

Still, many people may find the declaration of an achievement at this moment bewildering. Russia's invasion of Ukraine in 2022 triggered a surge in resource prices, and soaring prices have continued to squeeze household budgets.

It was not until the spring of 2024 that the BOJ ended its unprecedented easing. Its pace of interest rate hikes after that was also gradual. That was because the central bank was wary of cooling the economy too much and sending it back into deflation.

However, since this summer, global inflationary pressures have intensified as crude oil prices have remained high due to turmoil in the Middle East. Depreciation of the yen has compounded the problem, and price increases in Japan have become pronounced as well. The challenge now is whether inflation can be kept stable at around 2%. To that end, the BOJ needs to continue raising interest rates to curb price increases.

As Japan looks ahead to a sustainable recovery of its economy, the Japanese government's response will also be tested. Prime Minister Sanae Takaichi's administration, after being criticized by U.S. President Donald Trump over the weak yen, has been less inclined to intervene in the BOJ's monetary policy. But restraint alone is not enough.

The administration must reconsider its expansionary fiscal policy as a whole, including consumption tax cuts and gasoline subsidies. Even though the economy has shifted from deflation to inflation, clinging to measures to stimulate demand as if Japan were still in the deflationary era will only fuel higher prices. Such measures could cancel out the effect of the BOJ's rate hikes, undermining efforts both to curb inflation and to reverse the yen's depreciation.

Now that the 2% inflation target has been reached, the proper course would be for the government to declare an exit from deflation. The Takaichi administration has presumably refrained from doing so because it fears that such a declaration would weaken the rationale for the expansionary fiscal policy that it has made a centerpiece of its agenda.

But unless the government and the BOJ move in step, they will not be able to break the cycle of inflation and depreciation of the yen that is burdening the public. They should align their understanding of prices and pursue an appropriate combination of fiscal and monetary policies.

Article source:   https://mainichi.jp/english/articles/20261102/p2a/00m/0op/016000c

BOJ and Price Stability: Updated Nov. 2, 2026.

After decades of deflation, BOJ faces test of maintaining price stability

Ideas

The Bank of Japan is correct to say that its the beginning of a new phase and even though the BOJ might have reacched its 2 percent target, there, as again noted in another article there are still pockets of deflaton and even pockets of inflation in some areas in Japan the BOJ has to deal with both at the same time.

But the BOJ is again correct in saying that the deflation situation might be worse than inflation as there are a host of challenges with deflation such as less spending in the economy as consumer look for even lower prices, less investment spending by companies as they wait for the economy to improve, and lower wages are offered by companies which affect the debt household have and many other negatives.

Yes, its possible as Japan's population continues to decline and consumer spending doesn't seem to be picking up either the BOJ is maybe resigned to suggest global inflation might be the lesser of evils to help the economy get out if stagnant and deflation stage.

But there is always the idea of foreign tourist consumer spending, which has been at record numbers recently, to help pick up the economy, and it helps, but it can't overcome the less than needed domestic spending in the Japanese economy.

There have been again pockets of inflation increasing to 3 percent from time to time but never really stays there that long and, for now at least, inflation overshooting is the least of BOJ's challenges and there are still just too many under the radar signs that deflation is still lurking in the economy.

And for the average household and average consumer in Japan price stability is the one of the most important variables if not the most important as households and consumers need price stability to plan their future spending and budgeting each day, week, and month.

I don't think its a situation where the BOJ was slow to recognize that underlying inflation had been reached but, again, the BOJ has been dealing with the presistent deflation situaton which is far more dangerous for an economy than inflation as they most likely kept their eye on the deflation situation while again maybe looking at inflation from time to time.

And yes, Japan's wholesale prices increasing to 7 percent might have escaped the BOJ's eyes at the beginning but they know full well what is going on and they are looking very carefully  as to what to do about the situation but it seems the BOJ, at this time, is not going on increase the key rate to try and lower inflation, as again delation is still lurking in the Japanese economy.

Yes, even though the BOJ's target of 2 percent might have been reached they might not need the zero rate policy that the BOJ had since around 2013 and they, at least for the time being recognizee that maybe just maybe real inflation has finally come back to Japan.

But again real inflation related to consumer spending and consumer demand is still relative weak in Japan as even though its not enough foreign tourist consumer spending, where foreign consumer have more purchasing power and with the weak yen can spend more and help the economy some but it doesn't take away the need for domestic spending by Japanese consumers.

Yes, there seems to be a combination of factors that has driven inflation and yes, too, maybe consumers in Japan are more accomodating of the increase in prices and companies and their profits margins are being squeezed by higher imports costs, and the labor shortage which is forcing companies to increase wages to keep the workers they have and get new workers too as all companies, or many companies, are now increasing wages.

And maybe just maybe as wages continue to increase workers are feeling better about their disposable income and might be getting out and spending more or at least spending more online these days.

Yes, Kodama is most likely correct that the BOJ's role only played a small part and global inflation has been a major factor in inflation reaching the 2 percent target and sometimes even moving past that target.

Of course there are always going to be disagreements as to what really increased inflation as there is a saying that you can have 100 economists and they will all give different answers or ideas about some topic or situation.

Yes, most central banks prefer to see inflation at or around 2 percent as they feel its a manageable number at that level there is enough money or currency flowing through the economy to either maintain or improve economic growth.

However its easy to blame the BOJ for not being able to reach the 2 percent target but it must be remember an economy is an organic system made up of many moving parts and with many sectors and each sector doesn't always cooperate with other sectors, so in retrospect the BOJ really didn't have that much control as there were/are just too many moving parts to control with just an increase or decrease of the key interest rate.

Yes normal everyday commodity prices are the major challenge now for Japanese households and consumers and even businesses are feeling the affects of normal everyday commodities and yes consumer demand in the Japanese economy is not that good yet, and wages, while improving are not enough for all consumers in Japan.

For example, only 30 percent of workers in Japan work for the large name-brand companies that can afford to give good wage increases as the other 70 percent of the workers in Japan work for small and mid-size companies that don't have the needed profit margins or resources, even they wanted to, to increase wages enough to get people spending in the economy again.

The weak yen is both a positive and a negative as it helps exporters and their prices in the US for example but it hurts importers as import prices increase due to the weak yen and naturally importers will pass-on their increased costs the next in the supply chain including the final retail customer.

And yes, Japan, being a resource-poor country has to import much of what it needs including much if not all of the energy it needs, even though in the past it used nuclear energy which it does sparingly now after the March 11, 2011 tsunami and earthquake situation

Yes you can always say what should have been or we should have done things differently but that doesn't help the current situation and the BOJ and government need to focus on what is happening now and give Japanese households and consumers the best chance to live their lives without being stressed out by high prices or high energy costs.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20261030/p2g/00m/0bu/049000c