simple and straightforward. the bank of japan needs money. second, the government comes in with fiscal policies stimulating real events conlan and then the government to introduces a package including massive deregulation and other gross plans and sustainable, that is it. and three hours and by the way it was actually clear in its

college days, a combination fifth. i was not actually clear. i was a ski shooter in japan in the 1976 olympic games in montreal. any health, only as a byproduct, it is grossly missed the.. and deficient, too much difficulty and too much persistence, we have used every possible means. and japan calm to the world,

only ruling japan for the people in japan, the people in america and people in the world, that is what we are aiming to bring about. if you are still in doubt about what i say it is probably because you have never gone through the organization, economic deflation. listen to what it is, it all started with the asset class bubble in the 1990s. at the end of 1989, about 389.

about 39. it fell down by 7,000 yen. the land prices in major cities is deep in 1991, came lower by 87%. and 17, many effects had negative, many companies also have negative difficulties. only in reducing their balance. companies fully take back -- they are dead. rather than investing in new

ideas, future growth, choose to minimize, having raised in song, unions want no layoffs so they chose to upset the pace. and gained balance. grows slowly because no one except for the government was willing. a vicious cycle, very persistent. imus telluride is like slow-motion. in its early stage it does not

feel so painful. it is also left so that your purchasing power declined. it is already too late. that you are a hostage for and you cannot escape the vicious cycle. deflation rings no alarm bells. that is one deflation is much more harmful? and before the december general election, we thought the most

important thing was to get deflation in mind of the japanese, at the outset, we thought that the economic landscape should be redone automatically so that people are willing to take risks. at that time the idea -- got to us, we made it something else and pushed it hard during the campaign. as a result of landslide

victory. and holdings that were a long time coming. we had done. nothing there other than just voicing our policy package. interesting, isn't it? the market started to respond. it speaks volumes about how important it is to change people's perception and mindsets. it is true that japan is a country that has gone through mutation. no other nations have deflationary after a second world war. throughout postwar history, if

you see three more examples that japan is among the few countries that have succeeded the the-published general theory in 1936. prior to that there was someone in japan, keynesian policies in the 1970s. and the finance ministers, one time prime minister in the fairly 1920s, early 1910s, saved japan by doing what we know.

full monetary easing and fiscal spending, spiral. he also did it deep and first for something horrible. so much so, see you later, and had given that. it encouraged me to think there was someone we wish to follow. back to the genesis, are a side.

the bank of japan, i issued a joint speech for the first time in japan monetary history. in that joint statement the doj introduced, we call it stability. the government to run a kind of back door economics and fiscal policy. the government should encourage the position and as japan

establishes a sustainable fiscal structure, what we need, what we do from now on is all based on this joint statement. anyhow, full monetary policy, i will not say more about if you just open up your magazine, they are now telling a lot about for a down economics. the bank of japan, really first, we are old men, possible. we showed that good community

and it is well connected and respected part of the central banking community. now it has gone to tell you more about the secondary fiscal policy. please note that this point, conservative does not apply to the japanese situation. in the u.s. conservatives are concerned about small government. the situation in japan is more complex. when the private sector cannot stand and only say if on deflationary, the government must be the center of last

resort. thinking that way, we put forth a largecale budgets for the fiscal year 2012. public works are also important, not only important but banks. unless we spend more and do it now, the 50 here of any even term, you have exactly the same problem. i would also like you to remember what people said about the golden gate bridge and so on. when constructed in the 1930s

many people said it was a lavish. however, 70 years after its creation, it continues to drop a million visitors a year. very different, i say. without the golden gate bridge, detours the economy would be much smaller i am sure. so we are investing for future generations when we do public works, my definition for public works, also believe tax policy should play to our own.

in japan, interestingly, still extremely low. and yet the company's investments remain, the depreciation costs as a result of deflationary. so to introduce another few areas in the new regime for your domestic business expansion you can get that reaction force special depreciation. if you invest more in development you can also get your taxes reduced. furthermore if you hire more or pay more to your employees you

can get tax benefits. these note what we are doing, domestic, to increase. japanese economy experts, 13% gdp, the number is bigger than that of the u.s. or brazil, but the less -- nations all over the world, we have not seen at built. the germans may be fully

proficient of gdp experts. there is another power being used. we are lucky, experts, he and i have left the c e os and they should remember and hire more. or pay more to their employees. for the first time in many years and increasing number of companies are willing to pay more. however, getting rid of

deflationary alone cannot guarantee long-lasting recovery. we must exceed people's expectations to sustainable economic growth and for the purpose, two down sides, deflationary without cost to interest rate hike. one by one. let that feeling that you now have cp is. and the economy is not growing. that is the bad inflation. people should suffer. right here, the third one, if

you recall, packaged policies, i know it is hard to come by. i am not saying it is easy. still, it takes us a look to see who you are, then you realize you can do more. i know i see don't like i know things. i see even believe that you had better be an optimist rather than presents. one thing, both of us are believers in japan.

and a domestic view. for example, what japan can offer. high-speed train, bullet train between tokyo, with average delay is. 30 minutes. since 1964, absolutely no human danger, no information. and aviation technology which could connect new york and washington d.c. not 40 seconds,

40 minutes. in my part of the world, for homegrown random china, and it is in high demand. i have said over and over again to obama in japan tt they can make an entire export industry. and i hope you know this has become something else. and some of you may recall the

foreign minister. to be given. furthermore some of the small companies in japan are amazing. my favorite one in tokyo. in the market. why, it is only comfort for congestion needles. you don't feel any pain. how many employees are there? six including me. amazing. few other countries are such an

unknown. only in japan your family businesses. so the real challenge for government is to let go. we should simply let the companies sharing themselves. for further details, there will be a couple months more. we have set up an expert move. they give us fearless proposal about innovation. i am looking forward -- they are likely to the something that

thematically changes for deflationary to present bad inflation from taking shape. it is most important but the bad interest-rate hikes, the second downsize risk, it is evident that the monetary easing without putting the fiscal house in order you lose your confidence and trust. it is 200 gb. on this fiscal prudence, very much hard. there may be a sunrise in

interest rates, no one will benefit from that. however, the truth is there are only ten more countries that can fund the entire government-in their own carelessness. most of the country's nominated in currencies other than their own. japan can finance its debt by suing bonds with its own currency. other french countries include britain and of course put u.s. united states of america. only four countries in the whole world. the most important, possible to

lay out credible roadmap for reducing the debt and second of all, stick to the road map and win from the market. i am proud of the government, an opposition party achieved last year. the agreement has become a bill. the bill enables the government to raise, raise the rate of attacks from 5,000 to 8 and then 8 to 10%. as you take place the year from now, the second in october of

2015, now, no one wants to see tax rates going higher. tax pike is the most unpopular thing to do for the politicians. i think it is the maturity of japanese democracy that made it possible for of the parliament to pass that bill. i am proud of it. and also remembering here effect that the massive easing was made possible on one condition. the government must pursue the fiscal prudence really hard, what was promised in the joint statement i mentioned earlier. in the next few years friday o.j. will fire a huge amount of

government bonds in an unthinkable so far. the markets must become more nervous to see whether or not the government is improving its fiscal situation. so far the fiscal prudence is not a test for the future. it is clear that we ought to start taxing now rather than later. i am determined to facilitate the economic environment and raise the tax rate. based on provision, comprehensive tax reform act. and japan's own entitlement

reform to put the government expenditure in check. previously the g 20 meetings. together with other member nations, we aim the primary balance to fiscal the -- fiscal year 2015 and from 2010 and we also keeping family balance, by 2020. we are going to publish medium-term fiscal plans around the middle of this year. the second interest-rate hike is avoidable. economics should take a deep

root for an economy to see sustainable growth. finally let me say only a few words about what kind of country japan not to be. japan should be a place where effort, japan must be a place where thinkers, risktakers can be given opportunities not just once but many times. prime minister presents a chance for a second coming in japan. japan must be a place where the

sense continues. japan must be a place for innovation. japan is on the cutting edge of new medical technology. the nobel prize winner said japan is a country that is a bonus to bringing stems cell technology. that is about it, ladies and gentlemen. once again we are doing not only for the sake of the japanese but also to make our alliance stronger. at the end of the day the u.s. is the biggest democratic economy. and the sky is the limit. thank you very much. [applause]

>> thank you. the are an ongoing to take some questions. 25 years ago this month i went to work on the japanese diet and my boss says the young rising star named alfred tunnel to make sure i didn't get in any trouble. he failed but i was directly informed he was a rising star and was not told he would be a personality on radio that alone a bazooka wielding -- it is a good thing for japan and the world economy is on the job. let me ask the first question,

about the third bazooka. i know you are awaiting a few months. is something happening in japan in a july? you are waiting for the election and gathering the views of experts but could you say more about your personal philosophy or principles that would guide the third bazooka? but get at considerable sustained economic growth. what are some of the principles that you think about with the third bazooka? >> even though some are thinking the british it takes it through

-- and kate >> translator: regarding the the 30%, the question might be better addressed to someone other than myself and wait another few months from the people who are responsible for building an idea right now and you'll be able to get them but as far as i know i need to try to answer the question. >> [speaking in native tongue]

[speaking in native tongue] [speaking in native tongue] [speaking in native tongue] [speaking in native tongue] >> translator: a number of people are coming up with a

wonderful idea for march numbers and it has to do with deregulation particular the on the medical care area. for example, in japan there is already up production going on for producing new sinclair robots. the technology that enables people to keep something in their mind set, it would drive the robot's i, whatever we want to see them, may be that type of development in japan, the idea needs to apply fully to the use of the nursing care robots, but at this moment we have a ministry, health, labor and welfare, which knows nothing about the development of the system, developing what they're trying to do to justify the pharmaceutical oriented development system to the development of nursing care

robots so many times over going over experiments have to be performed so by the time approval is given the robots become outdated. this is not the way to go. so we are introducing a system to overcome this. [speaking in native tongue] >> translat [speaking in native tongue]

[speaking in native tongue] >> translator: it is just one example. another example can be found in the water supply system. the end of world countries apart from japan to one to the assistance but in japan, we announce the information for communications, that these -- a country which is known for being successful in recovering 99% of the water so most of them as opposed to a -- there are those

systems around by the states or municipalities that we can service these areas as well. it is not a public sector, sectors like schools but the private sector. >> thank you. matthew? >> we have a microphone? set an example by identifying yourself. >> i am matthew, thank you for those compelling remarks. i have a question but first i want to comment on your answer to mike's question. it was very helpful that you were specific and your answer to the question about the growth strategy and i appreciate that. if i may cite the most famous american peanuts, there was a regular installment in peanuts

in which charlie brown faces his friend lucia she is holding a football and encouraging him to kick the football and you wants to kick the football but doubts, and thinks she can take away because every year she takes it away and she ends flat on his back. so i think a lot of us in washington are like charlie brown. we want to believe that there have been experiences in the past were growth strategies have not been specific or carried through. i think everyone is looking forward very much to this growth strategy and specific elements that get carried through. the question is about the first zero. can you give us a little more flavor of the discussion about monetary stimulus not just in japan but another advanced economy and the impact of that on global partners and whether there was significant concern

about that issue to address the monetary stimulus? >> [speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] >> translator: with this issue, at the g 20 meeting that was held, where the future of the government had abandoned and the previous in february, the second one of the week in washington. the question everyone wanted to know about the impact on the asian policy in japan because right now the interest rate is at the point that is not 5% but 0.5% so really this is a

situation whereby a massive flow of the emerging market economy. [speaking in native tongue] [speaking in native tongue] >> translator: when talking about this, to lived the japanese economy out of the deflationary recession, precisely the priority.

so this is only a mere byproduct. so fees of the sto lesf people who want to know more and more or less understanding what happened. [speaking in native tongue] >> translator: the report communicates, perhaps i can gain your understanding. [speaking in native tongue] >> action is required to make growth strong, sustainable and balanced. some countries are taking steps to stimulate activity.

in particular, japan, recent policy actions intended to stop deflationary and support domestic events. [speaking in native tongue] >> translator: it was used by the answer which was due to asking the question. >> arthur? >> the economy of georgetown,

one of the interesting problem that we faced and i do not envy you is fiscal consolidation, you are certainly aware we will take a big hit on consumption on income that will have a negative impact on the economy and balancing the issues of fiscal consolidation. >> on the point about that, nothing -- [speaking in native tongue] [speaking in native tongue] >> translator: mostly an important point.

we need to raise taxes and see the tax revenue. we have several examples we have had in the past. [speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] >> translator: in 1997 when the consumption tax rate was 3% we initiated by doing this, in the tax rate in nearby france, however it turned out to be we had them and the consumption by individuals with that voice. it was in 1997 the total tax rate was the appropriate tax, income tax and consumption tax in that part of the year down to

57 in the end. and to the tax revenue, it didn't. instead it would be enough in that area. >> [speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] >> translator: last year and i did the -- i was able to instruct the team and there were a number of teams in position for the document. we have to pick up the economy, otherwise -- whether to do it or not will be decided by progress. so having picked up the economy than, we can see about taxes and the timing of the assets and the

tax. so in these responses, we have been seriously considering the implications. if you ask me to make a decision right now to said definitely that taxation will never be raise at this stage i cannot say that. we have to allow making sure the economy gets better. and then a judgment will be made. >> we have time for a very short question over here. wait for the mic. >> thank you for speaking today. you mentioned the partnership for economic growth. i was wondering about the agricultural sector, specifically how these domestic pressures and negotiations going forward?

[speaking in native tongue] [speaking in native tongue] >> translator: i know the tp started with an ideal. in the case of the united states, sugar cane, diabetes is 100% of them, sugar cane producers in the southern part of the united states broke down

completely in mexico. [speaking in native tongue] >> translator: likewise, to enable 100% of those cd, there is going to be no more cowboys left in the united states. that situation is totally inconceivable. [speaking in native tongue] [speaking in native tongue]

>> translator: i know that any country has a sensitive issue to themselves. for example united states to do something about the automobile area because the japanese are entirely on the automobile dealer in the united states to maintain 25% of trucks and 5% on the taxes and this is a condition they have asked us to keep. [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] >> translator: likewise, the bank of japan of course we will have to decide which items, we might decide to qualify for subsidy and when we look at the strawberries in the bank of japan and suggesting one piece campaigning for 300, or 350 yen apiece, countries in the arab area to educate better this 300 yen for example. and spectacularly threatened so

it is much more. so to make a profit that it makes, it all depends on what they were talking about. they are raise and maintained and unfortunately in the case of this, due to global warming, the island of japan is enjoying the benefits as a result of april 2nd. and the rice that is known for the most delicious planes. no reputation at all. that that is for that, hokkaido produced it and a golden price for the excellence of the products.

and in hokkaido you can have a paddy field of rice. it is cheaper for example. and it was -- in this way even rice has much more and right now because of this change in the report that the rice production is shifting, much more. and is much more in the food area. service is the flow that i see. i am not an expert on this subject but in the southern part of japan, in that area, i still

have that. >> thank you for comprehensive, concrete and candid presentation. we would appreciate if you would give the minister and his delegation attends to get on to their next appointment. we have copies of the speech available out front and on our web site but let's conclude, please join me in expressing our appreciation. [applause] ..