The Japanese economy is losing its momentum. Some of non-manufacturing companies and SMEs may hold back their capital investments. The weakened US economy may have a negative impact on the Japanese export. Labor market is fairly good and consumer spending is a hope.
The US economy needs watching. Private companies are still OK, but household spending is a bit weak. An increasing number of job seekers are out in town empty-handed. It is nevertheless not plausible that the current fear on the US financial market will damage the real economy.
Expanding social welfare burden will lead us to consider using consumption tax as resources making up for the cost in case that maximum annual spending cut is not good enough.
The law must be extended without delay. Terrorism is evil and the global community needs Japan to exterminate the executioners. Japan has been successfully working together with the US in this field.
Japan-US alliance is unshaken.