The Prime Minister of Japan, Shinzo Abe, has arrived at the White House and will spend the weekend at Mar-a-Largo where tough negotiations will be held during a round of golf and other pleasantries.  The stakes are high with key focus on trade and security.  Not only does Japan sport a larger trade deficit with America than Mexico, but the country also produces a lot of goods with our NAFTA partner that add to that deficit.

Abe has come armed with proposals to help fund infrastructure by financing deals for the high-speed trains and other advanced technology.  

Japan is not the economic juggernaut that was once going to take over the world, including the United States.  Instead, it’s the oldest nation in the world with the lowest birthrate and young men that have given up on sex.   Its population set to decline from 128,000,000 to less than ninety million.

It’s lost its military edge in an age of an emboldened and belligerent China intent on regional dominance.  The Nikkei was getting slammed for most of 2016, but has staged a 19% rally since November 9, 2016. 

Nikkei

These are hopeful times and both leaders have a lot on the line.