Business Week (February 26)
“Japan faces biggest crisis risk in G-10” reads the headline which is based on an assertion by Goldman Sachs’ chief economist Jim O’Neil. O’Neil is famous for coining the term BRICs (Brazil, Russia, India and China) and predicting these countries would rank among the globe’s most dominant economies by 2050. O’Neil provides several reasons for his latest prediction that Japan could experience a major economic crisis. Japan’s domestic savings have dropped, with savings rates falling below those of the U.S. Meanwhile, public debt has surged and, on top of everything, the yen is overvalued.
The Times (February 26)
The BBC has announced plans to close two radio stations, halve web content, and cut spending on sports and overseas programming rights. The BBC thinks these reforms will reduce competition for commercial rivals and allow more money to be spent on higher quality programming. The Times (London) calls the BBC “big, bloated and cunning,” labeling the reforms “a smokescreen.” Instead, the newspaper argues the BBC should reduce the license fee and make deeper cuts to avoid competing with the private sector.