by Japanese makers was 515, the largest since 1985.

So, Japanese makers have made great efforts to survive while the US has been enjoying the ever weakening dollar against the Japanese yen.

Especially after 2208 or since the fall of US sub-prime loan transactions and the Lehman shock, the US or FRB has increased the amount of dollars circulated in the market three times more. But the Bank of Japan expanded the monetary base only by 45%. This imbalance caused the higher yen, since the exchange rate between two countries follows the difference of quantity of money between the two if other conditions are not so different.

Let's check the trend of the GDP deflators of major countries, which can be calculated by dividing the nominal GDP by the real GDPof Japanese workers and thus reduced the revenue of the Japanese Government from tax.

Nonetheless the real financial condition of the Japanese Government is not so bad compared with other countries in terms of Government interest payments against its net debts. But as an amount of the nominal debts of the Japanese Government over GDP is 200%, this financial balance sheet is still a big problem.

Finally the number of wealthy class households in Japan has not been changed since 1997 despite this 15-year-long deflation. This deflation has not made rich families in Japan poor but allowed them to keep their position. That must be one of major reasons for a deflation-oriented policy of the Bank of Japan and the Japanese Ministry of Finance.

Incidentally Japan is the second largest country