Registration / Login
text version
War and Peace

 Hot news

Touring the Backyard: Putin Pays Central Asia a Visit
Donbass blockade is finishing off Poroshenko and Akhmetov
If US throws Ukraine under the bus, will Moscow reciprocate?
Military Situation Remains Tense In Eastern Ukraine
Main page » News » View
Printable version
GPIF to invest in U.S. infrastructure blitz as Japan, U.S. plot new policy framework
02.02.17 20:26 Economics

Japan plans to use its public pension fund to invest in U.S. infrastructure development, a source from the government said Thursday.

The investment drive is part of a wide-ranging policy package Prime Minister Shinzo Abe is expected to present to U.S. President Donald Trump during their highly anticipated summit in Washington on Feb. 10.

Without citing sources, the Nikkei business daily said the Government Pension Investment Fund, the world’s largest, will buy debt issued by U.S. companies to fund the vast spending program.

In addition to infrastructure, it is hoped the package will lead to the creation of several hundreds of thousands of U.S. jobs in projects related to artificial intelligence and robotics, according to people familiar with the matter.

Trump has pinpointed infrastructure as an issue of concern, signing an executive order on Jan. 24 to fast-track the approval process for high-priority projects.

After investing heavily in Japanese Government Bonds, GPIF has been diversifying its asset portfolio since 2014 as part of the Abe administration’s economic plan, which saw it jump into the stock market.

But GPIF President Norihiro Takahashi denied that the U.S. investment plan is part of government-ordered economic policy.

“The GPIF is making investments, including in infrastructure, from a long-term view chiefly for the interest of pensioners, and there will be no change in our principle,” Takahashi said. “We won’t make changes to our investment portfolio in response to government instruction.”

Fund spokesman Shinichiro Mori echoed Takahashi.

“We do invest in infrastructure projects from a purely investment point of view, but we never, ever, make an investment decision as part of government economic measures,” Mori said.

Government spokesman Yoshihide Suga took a similar line.

“The GPIF makes decisions on a regular basis to bring benefits to those enrolled in it,” Suga told a news conference.

The pension fund, which was managing around ¥135 trillion ($1.19 trillion) as of the end of March last year, appears to have significant leeway to invest in U.S. infrastructure without altering its principles.

The fund had invested ¥800 billion in overseas infrastructure as of March 2016. Its investment principals allow it to invest up to 5 percent of its total — around ¥7 trillion — in the category.

Meanwhile, a diplomatic source said that Tokyo and Washington plan to form a new framework for ministerial-level dialogue to coordinate policy on economic, trade and security issues.

With Deputy Prime Minister Taro Aso and U.S. Vice President Mike Pence at the helm, the forum will serve as a venue for strategic talks between key ministers aimed at producing mutual benefits, the source said Wednesday.

The framework would be the first of its kind between Japan and the U.S. covering this range of Cabinet portfolios, apparently reflecting the two governments’ eagerness to address China’s economic and military presence.

According to the source, the plan for the forum came from a U.S. suggestion that Japan make the move ahead of next week’s summit. Arrangements might be made quickly enough that the leaders can agree to set up the forum at the summit on Feb. 10.

According to the source, Japan will be represented by Aso — who doubles as finance minister — Foreign Minister Fumio Kishida, Defense Minister Tomomi Inada and Minister of Economy, Trade and Industry Hiroshige Seko.

The U.S. side will include Pence and other counterparts in the Trump Cabinet — U.S. Secretary of State Rex Tillerson, Defense Secretary James Mattis and Commerce Secretary nominee Wilbur Ross.

Aso, Kishida and Seko are expected to accompany Abe on his visit to Washington next week.

The trip comes amid concern over how Trump’s “America First” creed could impact future trade and security relations and affect Japanese firms doing business in the United States.

Since his inauguration on Jan. 20, Trump has slammed Japan for unfair trade practices on automobiles. On Wednesday he implied that Japanese authorities are intervening in the currency market to keep the yen weak, which supports its all-important exports.

The Abe administration apparently holds the view that such “misunderstandings” about Japan’s economy and trade situation can be tackled effectively through dialogue with Pence and other members of the Trump Cabinet.

 
 Orphus: ORPS

Archive
Forum

 Exclusiveread more rss

» Addition by Subtraction, (x, y)↦x−y
» Too Little, Too Late, will there be a Romanov ending for the Sudairi Seven?
» Week 21: When economic arguments end, the arms race begins
» Is Germany losing yet another world war?
» The Islamic State (ISIS) is Made in America: The Pentagon had Planned the Fall of Mosul and Ramadi in 2012
» Has Merkel Been Abandoned?
» The Islamic State and Chaos in the Greater Middle East
» Council on Foreign Relations Grand Strategy: China Must Be Defeated, The TPP Is Essential to Undermining China

 Newsread more rss

» Integrating the Army Into the US Approach to the Pacific
» Russian jets mistakenly bomb US-backed forces in Syria
» Touring the Backyard: Putin Pays Central Asia a Visit
» ISIS Changes Format of War in Iraq Using Partisan Methods
» Great Wall of the EU: China at the gates
» Donbass blockade is finishing off Poroshenko and Akhmetov
» Israel targeted under law passed to help 9/11 families sue Saudis
» Morocco threatens to cut EU ties if farm deal flounders

 Reportsread more rss

» The Cowardice of Aung San Suu Kyi
» EU Steps Up The Pace For Cashless Society In 2017/18
» Islamic States Khorasan Province, 2 Years on
» Can Afghanistans Economy Rebound in 2017?
» Trump triumphed due to downward mobility
» Americas Secret African Drone War Against the Islamic State
» Putin Goes Ballistic In Syria, Obliterates The USAs Secret Mideast Strategy
» Grassroots Fascism: The War Experience of the Japanese People

 Commentariesread more rss

» Moscows wriggle room shrinking vis-à-vis Trump
» The $2 Trillion Gamble That Saudi Arabia Cannot Win
» Frances election in total chaos for the mainstream
» If US throws Ukraine under the bus, will Moscow reciprocate?
» Russian Mercenaries In Syria And Around The World
» Did Bayer AG do a Sly Deal on Glyphosate with EU Commission?
» The road to democracy
» Why Pakistan let out a Top Secret

 Analysisread more rss

» The cancer of bankers
» Will Trump Destroy the Euro?
» The magic of bankers
» Pakistan and China: Dont Fear Chabahar Port
» South Africas Opposition See Eye to Eye with Trump
» Rex Tillerson and the Myths, Lies and Oil Wars to Come
» Incipient Hybrid War in South Central Africa and Mozambique
» Trump Killed TPP. Whats Next For Trade in Asia?
 
text version 2006-2017 Inca Group "War and Peace"