Politics 2000

Japanese Prime Minister Taro Aso resigned his position at the head of the Liberal Democratic Party Sunday in the wake of an historic electoral defeat. The LDP lost the plurality in Japan’s lower house of parliament for the first time since World War II.

The opposition Democratic Party of Japan earned an outright majority of the seats. The LDP had typically led a coalition government. The DPJ will not need to form a coalition.

Yukio Hatoyama, the DPJ leader, is expected to be named prime minister shortly. The lower house names the prime minister.

Japan is continuing to struggle through the worldwide economic crisis. Citizens clearly blamed elected officials for some of the trouble and wanted a different direction.

Saturday is the closing day of a two-day sale of California government-bought goods. A Sacramento warehouse is storing most of the items and people bought quite a bit Friday.

People may also purchase some goods through Craig’s List or eBay. The sale is intended to raise money for state coffers as California endures an historic budget crisis.

A budget for 2009-10 was cobbled together but pundits expect more trouble next year. Long-term problems were not solved; they were stalled by accounting tricks.

In addition, revenue is not predicted to match projections since the U.S. economy has failed to improve. California is among the hardest-hit states, thanks to a 12.1 percent unemployment rate and its role as a housing bubble epicenter.

I’m glad some surplus items are being sold. It’s better than paying to store unneeded stuff. I’d like to know why so much was bought that some of it has no purpose other than to serve as flea market fodder.

President Obama nominated Ben Bernanke for a second term as Federal Reserve chairman this week. Bernanke’s term will expire Jan. 31. His nomination is subject to Senate confirmation this fall.

Wall Street is happy that Bernanke will lead the Fed four more years. Stocks have been slightly higher than the announcement. Obama said continuity was vital considering the economy is still in a precarious state. Therefore, changing a key member of the economic team wasn’t a wise idea.

Liberals won’t likely be pleased that the Republican Bernanke, originally appointed by George W. Bush to replace longtime Fed chairman Alan Greenspan, will remain in power. Senate Banking Committee chairman Chris Dodd voiced some concerns about Bernanke’s slow response to the American economic crisis but praised later efforts.

Bernanke, a former Princeton professor who has thoroughly studied the Great Depression, is expected to be confirmed without much trouble. He’ll face some tough questioning during the confirmation process but there isn’t an organized opposition.