Amazing: 471,567 households applied for their FREE MONEY from the Japanese government, but failed to fill out their addresses correctly!

Friday, July 3, 2009
471,000 Applications For Cash Handouts Sent Back With Wrong Addresses

TOKYO (Kyodo)—A total of 471,567 applications for the government’s pump-priming cash handout program have been sent back to municipalities as they were incorrectly addressed as of last Friday, the Internal Affairs and Communications Ministry said Friday.

The ministry said it will step up its publicity to call on households who have not received the cash benefits of up to 20,000 yen per person to file their applications as they are feared to fail to receive them.

Meanwhile, a survey showed 86.0 percent of households in 1,798 cities, towns and other municipalities across the country have received the cash handouts which have totaled 1,772.6 billion yen as of last Friday.

The municipalities began providing the cash benefits in March to cover about 54.8 million households under the government’s economic stimulus plan.

Of the applications sent back, 73,000 were sent to foreigners, who have often failed to provide moving notices to municipalities in urban and other areas.

The households will lose their right to receive the cash handouts unless they file applications in six months after the municipalities began to accept applications.

“The wrong addresses” apparently means that the addresses on the applications somehow did not match their residence registry (住民票). This could be anything from a kanji mistake to the head of the household neglecting to update his address with the local authorities.

Since Japanese nationals only had to fill out one form per household (foreigners had to fill them out individually since they’re not listed on residence registries for now), each mistaken application might be for multiple people. If we assume the “average household size” of 2.56 people, and roughly assume that all of them were only eligible for the basic 12,000 yen, that means we could be talking about 14.5 billion yen up for grabs.

I wonder what happens if the households “lose their right to receive the cash”? The towns better not get to keep it. It’s about 115 yen apiece for the other 125 million people in Japan, or more than enough to build another of the controversial proposed national anime museum.

Just out of curiosity, I decided to take a look at Japan’s energy situation. Here is the US Energy Department profile of the country:

Japan has virtually no domestic oil or natural gas reserves and is the second-largest net importer of crude oil and largest net importer of liquefied natural gas in the world. Including nuclear power, Japan is still only 16 percent energy self-sufficient. Japanese companies have actively pursued upstream oil and natural gas projects overseas in light of the country’s lack of domestic hydrocarbon resources. Japan remains one of the major exporters of energy-sector capital equipment and Japanese companies provide engineering, construction, and project management services for energy projects around the world. Japan has a strong energy research and development program that is supported by the government. The Japanese government actively pursues energy efficiency measures in an attempt to increase the country’s energy security and reduce carbon dioxide emissions.

Oil is the most consumed energy resource in Japan, although its share of total energy consumption has declined by about 30 percent since the 1970s. Coal continues to account for a significant share of total energy consumption, although natural gas and nuclear power are increasingly important sources, particularly as Japan pursues environmental policies. Japan is the third largest consumer of nuclear power in the world, after the United States and France. Hydroelectric power and renewable energy account for a relatively small percentage of total energy consumption in the country. Total energy consumption from 2003 to 2030 is forecast to grow by 0.3 percent per year on average, relatively small as compared to China’s forecast growth rate of 4.2 percent per year on average, according to EIA data.

According to METI’s energy agency, 58% of Japan’s electricity consumption comes from non-renewable sources such as oil, coal, and liquefied natural gas. That number is a whopping 71% in the US.

As the Energy Dept. indicates, Japanese officials view Japan’s high energy consumption and low self-sufficiency as a potential vulnerability, in both economic and national security terms. For example, Iran’s  status as a major supplier of oil heightens Japan’s interest in the region (and based on pure speculation, might have influenced the Japanese media’s comparatively tame coverage of the recent Iranian election protests).

So remember: when you are enduring higher office temperatures thanks to Cool Biz, you’re not just saving electricity, you’re helping guarantee Japanese security!

I’m on my way out the door for a personal trip that will take me around Hokkaido, so I apologize for writing and posting in haste with what may contain a few leaps of logic and clerical errors, but I saw an article by Business Insider on Japan’s “bizarre new mortgage crisis” (with an inexplicable photo of a crazy Japanese female zombie). The post covers an issue with mortgages that I recently saw profiled in an NHK mini-documentary:

With the onset of the recession, Japanese companies have exercised their option to reduce or even cancel bonuses, and for the past month the media has been buzzing with a new term — June crisis — to describe the situation of workers who may not be able to meet mortgage payments as a result.

June and December are bonus months, and 45 percent of Japanese people with housing loans have contracts that require them to pay larger amounts in these months than they do in other months, in some cases as much as five times.

Publications and TV news shows have been filled with human-interest stories about people suddenly faced with the possibility of losing their homes. The Asahi Shimbun tells of a 40-year-old housewife whose husband did not receive a bonus this month and apparently won’t receive one in December either. Even worse, his salary has been cut by 20 percent. They have 20 years left on their 35-year mortgage. They pay only ¥80,000 a month toward the loan, but during each bonus month they pay ¥400,000. With one child in university and another in junior high school, they have saved very little. “When we took out our mortgage,” the woman says, “it was unthinkable that my husband’s bonus would be zero.”

Business Insider asks from someone in Japan to provide more insight, so I decided to make this post to weigh in with a minor explanation and supplemental comment. In a word, the annual salary of company workers in Japan is regularly divided into 14 month portions, not 12 months—one extra month given during the bonus seasons in the summer and winter. Accordingly, some mortgage products, especially those sold in the 80s and 90s, had extra payments during bonus months. (The trend became very unpopular in recent years and is now much more rare.) However, a problem with this is that although a worker may believe his annual salary to be his monthly amount times 14 (not 12), the bonuses of many companies are not guaranteed, although its payment has long been taken for granted, at least before the current economic crisis that has hit Japan’s exporters hard.

The only additional comment I have is that I don’t expect this to develop into a real “crisis.” Banks do not want to forclose on homes in Japan. With the collapse in housing prices over the past 20 years, lenders would not be able to fully recover on many loans if the borrowers defaulted, and even where the loans permit recourse, it still seems unlikely that banks would benefit by making people lose their homes. Perhaps thats wishful thinking, or even unrealistic, but this is a blog, so tell me in the comments if you think I’m wrong.

And on a final note, I’d always take anything I read in the Japan Times with a big, big bucket of salt—just check out the following unverified assertions using scientific journalistic terms such as “pieces of crap”:

There are more than 6 million vacant houses in Japan. Most will never be sold, because they’re pieces of crap that were never meant to outlast their 35-year mortgages. Condominiums are no better. On average, Tokyo “mansions” built in 1990, when land values peaked, were selling for half their original prices by 2004.

While I may find something to agree with in the commentary of that section, I would like to hear on what basis there are 6 million new and vacant homes, as implied. While there are lots of homes abandoned by families when elderly relatives go into homes or kick the bucket, for estate tax purposes, 6 million vacant homes sounds like unsubstantiated rubish. Certainly the fact that mansions built in 1990 are not selling at half their original price is that homes in Japan depreciate rapidly in price.

When I claimed there were no real issues at stake in the upcoming prefectural election, I may have spoken too soon. Just half a day after I posted my rundown of the election, a consumer group along with DPJ and communist assembly members marched against the moving of Tsukiji market to Toyosu.

Interestingly, we have two articles on the link between frogs and pollution, with seemingly contradictory results. First the BBC reports that the spate of deformed frogs with missing limbs, a phenomenon which had always been thought to result from man-made environmental pollution, is actually caused by predatory dragonfly nymphs that actually eat the limb-buds from tadpoles, before they develop proper limbs when they metamorphose into frogs.

And then we have this column from Nicholas Kristof, telling us that It’s Time to Learn From Frogs. And what should we learn exactly? That industrial chemicals used in agriculture or in daily household products such as hairspray act as a weak form of estrogen on the body, causing significant sexual organ deformities in embryos of various species. It is well known that frogs are particularly sensitive to environmental pollution, which is why the aforementioned missing limb phenomenon was long thought to have a chemical trigger, but the evidence is mounting that these sorts of environmental pollution are also causing a stark increase in cases of human sexual organ deformity, particularly among young boys.

I can easily imagine some reactionary “conservative” making a pseudo-scientific argument that because we recently disproved a link between industrial chemicals and missing frog legs, we might as well dismiss the second case out of hand. This would of course be a logical fallacy, as the mechanism is clear and the evidence is plentiful, not to mention relevant so far more animal species than frogs, but don’t be surprised if you see someone trying to make such a claim.

Japan Times reporter Minoru Matsutani has been engaging in some unusually hard-hitting journalism in his recent series on the new immigration bill making its way through the Diet. In three articles, he went through the LDP’s perspective, the DPJ’s perspective, and the Immigration Bureau’s plans.

The third piece is the most interesting, as it takes on some of the strongest arguments against the new law: that it would be unduly harsh on overstayers and that it would inconvenience foreign residents.

Here’s the counter-argument on the first point:

If illegal foreigners turn themselves in, they may, under certain circumstances, be granted special permission to stay by the justice minister, or placed in custody in preparation for deportation.

The bills stipulate the justice minister must clarify the standard to grant special permission to stay to motivate overstaying foreigners to turn themselves in.

[...]

The bureau currently has no concrete criteria for granting the permit. Instead, it shows on its Web site examples of cases it granted and those it didn’t, but the information provided may not give illegal foreigners a clear clue as to what their fate may be, [Immigration Bureau General Affairs Division official Kazuyuki] Motohari said.

In one case on the Web site, a 27-year-old Southeast Asian woman was granted permission in 2007. She entered Japan with a six-month student visa in October 2004, dropped out of school and continued to stay in Japan.

She was arrested for overstaying in 2007, sent to the bureau without criminal charges and married a South American man, a legal resident, she had begun living with before the arrest. The bureau concluded their marriage was credible and she otherwise had a clean criminal record, it said on the Web site.

And on the inconvenience factor—the issue of certain changes having to be made at the immigration office rather than at city hall:

The Immigration Bureau is considering enabling foreign residents to report changes in workplace and apply for renewal of residence cards via mail or the Internet instead of requiring them to go to local immigration offices, he said.

Currently, renewing alien registration cards, which are to be replaced by zairyu cards, and reporting changes in personal information can be done at municipal offices, more of which exist than immigration offices.

For address changes, residents can go to municipal offices even under the new system. For changes in name, gender and nationality, they will have to go to immigration offices instead of municipal offices, but such changes rarely occur.

Together with the fact that this new system will give foreigners the same residence records as Japanese, as well as other benefits like free re-entry permits, it sounds as if the change is still, all in all, good for foreign residents.

U.S.-Japan dance on F-22 continues

U.S. defense officials are preparing a version of the stealth F-22 Raptor that Japan has expressed strong interest in buying. While the Department of Defense is working to design an export version of the Raptor, U.S. Sen. Daniel Inouye, D-Hawaii, this week sent a letter to Japanese Ambassador the United States Ichiro Fujisaki saying that the F-22 would likely carry a price tag of $290 million. Japan has made it known it would like to buy 40 F-22s, made by Lockheed Martin and Boeing, so the potential value of the deal is more than $11 billion…

It has taken some time for U.S. and Japanese negotiators to get a deal together for the F-22. And it will take several years of development to get an export version off the ground since there is a large amount of sensitive technology that U.S. officials believe needs protection. Aviation Week estimated it would be 2017 before delivery of the first aircraft to the Japanese air self-defense force.

Japanese defense officials are reportedly looking at other aircraft, including Lockheed’s F-35 and the Eurofighter Typhoon, which is manufactured by a consortium of Alenia Aeronautica, BAE Systems and EADS. Neither have all the stealth capabilities of the Raptor, making them substantially less expensive. The Typhoon is estimated to be about $105 million per plane.

Citibank is feeling some FSA heat right now because it wasn’t strict enough in monitoring and reporting “suspicious transactions including money laundering.”

Organized crime relations are becoming a bigger and bigger deal in the world of Japanese financial regulation. Late last year, the FSA and the Japanese Bankers’ Association adopted some administrative guidelines concerning how banks should protect against yakuza, sokaiya and other rabblerousers, and many of those guidelines are being phased in this year by institutions across the country.

One measure being implemented is amending account agreements in order to allow banks to pull service from customers with criminal ties. Here is a translation of the JBA’s suggested language (original version here). It is pretty laughable even by legal Japanese standards; I wonder who had a hand in drafting it.

Article [__] (Exclusion of Anti-Social Forces)

(1) I hereby represent that I am currently not, and hereby agree that in the future I shall not become, any of the following.

1. A criminal organization (暴力団)
2. A member of a criminal organization
3. A quasi-constituent of a criminal organization
4. An enterprise related to a criminal organization
5. A sokaiya (総会屋), politically-branded racketeering organization (社会運動等標ぼうゴロ) or organized crime-related “specialist” (特殊知能暴力集団 - a police term for individuals or groups who are not yakuza themselves, but help fund yakuza activities)
6. Any other person pursuant to any of the above

(2) I hereby agree that I shall not engage in any of the following acts, whether personally or through a third party.

1. Violent demands
2. Improper demands in excess of legal responsibilities
3. Acts of violence or menacing statements in relation to a transaction
4. Spreading of rumors, use of falsified statistics or use of obstruction to harm the reputation of your bank, or to obstruct the business of your bank
5. Any other act pursuant to any of the above

(3) In the event it is determined that I correspond to any of the listed items in paragraph 1 above, commit any listed act in the preceding paragraph, or have made a falsified report with regard to the representations and covenants in paragraph 1 above, and it is improper to continue transactions with me, upon the demand of your bank, I will lose the benefit of term with regard to all liabilities I have to your bank, and will promptly perform those liabilities.

(4) In the event that I have received the discounting of notes, that it is determined that I correspond to any of the listed items in paragraph 1 above, commit any listed act in the preceding paragraph, or have made a falsified report with regard to the representations and covenants in paragraph 1 above, and that it is improper to continue transactions with me, upon the demand of your bank, I will owe a liability to repay the face amount of all notes, and will promptly perform it. Until such time as this liability is performed, your bank may exercise all of its rights as the holder of such notes.

(5) Once performance of the liabilities under the preceding two paragraphs has been completed, this agreement will lose validity. (Bizarre phrasing!)