Friday, 28 August 2009

Sand castles in the sky?

Japan's economy in March experienced the most catastrophic level of lay-offs that the country had suffered in the past four previous years.The gloomy figures came as the government released a hopeful report showing a boost in industrial production by 1.6 percent.

Considering the recent upbeat reports that Germany, France even Britain are all on the launch pad of pulling out or recession; put’s things then into a different condensed juxtaposition when you consider today’s news that unemployment in Japan rose to a record high and as consumer prices dropped at an unprecedented pace last month, adding to fears that the country's economic recovery is already stalling under the grip of deflation.

Just two weeks then after Japan claimed to have emerged from its worst recession in half a century; its internal affairs ministry said that the jobless rate rose to 5.7% in July from 5.4% a month earlier. Core consumer prices fell 2.2% as concern mounted that the world's second biggest economy is caught in a deflationary spiral. The emergence of the world's second-largest economy from recession follows as I said the news that Germany and France – the two biggest economies in the eurozone – returned to growth in the second quarter. Clearly all we have here are nothing more than sand castles’ in the sky. This raises the question and gives the answer that recessions are good for the bosses and bad for the workers!

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