Low domestic consumption coupled with an unprecedented slump in exports (such as cars and electronics) has shrunk Japan’s economy by 3.3 percent, its worst result since the first oil crisis in 1974. Japan’s finance minister, Shoichi Nakagawa, who should be facing the music has resigned, denying allegations that he was drunk at a G7 news conference. Apparently he took too much cough medicine instead! (Reuters)

This coincides with U.S. Secretary of State Hillary Clinton’s trip to Japan where she praised the U.S.-Japan alliance stating that the United States and Asia needed to work together on the global financial crisis and climate change. Noble words from the Secretary of State but one can only wonder whether the concern is actually about addressing the economics and environment situation or whether in fact the U.S. desperately needs to reinforce ties with Japan given their increasing concern over Pyongyang’s nuclear program.

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As a measure against nocturnal rice thefts, Thai authorities introduced a six o’clock p.m. curfew on combine harvesters, vehicles used to harvest the crop.

In Thailand, as in many parts of Asia, the price of rice has gone up dramatically in recent months tempting greedy and corrupt dealers to use any means available to get a hold of the pricey grain for either sell or hoarding. In fact, the hoarding of rice has been blamed for the price spirals forcing governments to impose buying rations.

According to the Asia Development Bank (ADB), approximately 1 billion Asians need assistance to cope with soaring food prices and shortages.

The purchasing power of many of Asia’s poor has been seriously eroded reversing previous gains made in fighting poverty.

The International Herald Tribune describes rice, a staple food for half of the global population, as one of the “world’s most politically fragile crop.”

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