Three articles about Japan, who finally seem to be recovering from their own financial hang-over after how many decades?

In the 1908's investors pushed Japan's real estate prices through the roof and the banks had so many bad debts, they could not collect on them for fear of bringing down the whole banking system. Hmmm, why does that sound so familiar?

As the World's second largest economy, this trend in Japan is one to watch if you are interested in investing there.

Growth through wage increases and savings? What a concept!

In Japan, Wages Are Fueling Growth

Rising Domestic Demand Solidifies Economic Upturn; Self-Sustaining Recovery?

By SEBASTIAN MOFFETT

February 16, 2006

TOKYO -- To see one reason why Japan may have entered a strong new phase of economic growth, take a look at Pasona Inc., a large temporary-staffing company.

In January 2005, for the first time in its 30-year history, Pasona gave a pay raise to all the office workers used by its clients. They received raises averaging some 5%, and computer-literate office workers in the Tokyo area now typically make 1,600 yen or 1,700 yen (about $13 or $14) per hour.

However, in 2005 Japanese growth was driven by strong rises in consumer spending, which accounts for about 56% of Japanese GDP. What is more, this consumer spending was based on the first growth in overall wages since 1997.

The upshot is that Japan might have entered a self-sustaining recovery: As wages rise and people spend more, corporate profits rise because of the extra demand for their products. This can create a virtuous cycle as corporations can then raise wages again, and so on. Because of this, most economists are now optimistic about Japan's economy in the next few years -- though major structural problems, such as a rapidly aging, declining population, will limit growth in the longer term.

A weaker dollar is good for our own exports. If there are any of those left.

Yen Rally May Not Be Cause to Cry

Shift in Foreign Exchange Might Boost the Prospects For U.S. Investors, Exporters

By CRAIG KARMIN

March 1, 2006

A much-anticipated Asian currency rally may be at hand -- an event that could further boost returns that overseas investors get from the region's hot stock markets while also making U.S. exports more affordable there.

Under normal circumstances, the robust trade surpluses and fast-growing economies of countries ranging from South Korea to the Philippines would be expected to boost the value of their currencies. But the region's central banks often intervene to keep their currencies weak -- which enables exporters to sell their goods at lower prices.

Now, however, some analysts think this hard-line stance may be turning. They're following the lead of the two biggest economies in the region, Japan and China. In Tokyo, the government suggested it is close to taking the first step toward raising interest rates from essentially 0%, where they've hovered for years. On Monday, that sent the yen soaring to a one-month high against the dollar; it continued to climb yesterday. The dollar's value dropped to 115.75 yen per dollar.

If Asia's two largest economies are ready to accept stronger currencies, analysts say this could hasten other Asian governments to let their currencies rise, too. "There are very significant under-valuations across the region," says Jens Nordvig, Goldman Sachs currency analyst, who says currencies in Taiwan, South Korea and the Philippines are trading cheap to the dollar by 14% to 20%.

Breaching the walls of Fortress Japan. Perhaps our top export will be rampant American consumerism?

Finally, a Healthy Japan Offers Lift for U.S., Asian Economies

New Prosperity in Tokyo Spurs Import Surge and Helps Foreign Financial Firms

Having Yen for a Maserati

By SEBASTIAN MOFFETT and YUKA HAYASHI

March 29, 2006

Mr. Takaoka's spending shows how Japan's economy has started to grow in a way that could benefit the rest of the world. When Japan was booming nearly 20 years ago, the biggest indications were Tokyo's rocketing stock and land prices. Japanese people didn't buy as much from overseas as foreigners wanted. After a decade of slump, the recovery that began in 2002 was initially led by exports rather than domestic spending.

Now, consumers and businesses are spending more. That's important, because their activity makes economic growth more sustainable: Even if exports were to slow because of problems in the U.S. or Chinese economies, domestic spending could keep Japan's economy chugging along.

The new spending reflects big structural changes in Japan. Local upstarts and foreign companies have taken advantage of the sharp drop in land prices during the 1990s downturn to buy stores or offices. Japan has also deregulated industries from financial services to food, sometimes under pressure from the U.S. It has loosened restrictions on large stores and opened the way for new types of financial products.

Once known as a fortress for home-grown products, Japan's market is now increasingly open to overseas companies and entrepreneurs. In the year ending March 31, 2005, imports were 10.2% of gross domestic product, the widest measure of economic activity, up from 6% a decade earlier. The figure is on track to reach 11% in Japan's current fiscal year, which ends Friday.