Six New Fredos

PLEASE WAIT LOADING ,,,,,,,,,

Fredo, you're nothing to me now. You're not a brother, you're not a friend. I don't want to know you or what you do.

- Michael Corleone, The Godfather, Part II (1974)

On Friday, six Democratic Party of Japan members of the House of Councillors voted against the ittai kaikaku reform bills, including the bill raising the consumption tax. These six defectors are new, not a part of the 12 DPJ members who left the party to join Ozawa Ichiro's People's Life First Party (33 days since its founding and still no party website) or the 3 who left to form the Green Wind caucus.

The six are:

Tokunaga Eri (Hokkaido district seat, elected in 2010)
Mito Masashi (Kanagawa district seat, elected in 2007)
Uematsu Emiko (Kagawa district seat, elected 2007)
Okubo Yukishige (Nagasaki district seat, elected 2007)
Arita Yoshibu (proportional list seat, elected 2010)
Tashiro Kaoru (proportional list seat, elected 2010)

Mito, Uematsu and Okubo face reelection next year,. The other members are in for the long haul. Like House of Representatives member Kawauchi Hiroshi, all six really belong inside the LF. However, they are far more useful to Ozawa as fifth columnists inside the DPJ. Through them he can still influence DPJ policies, even though he himself is no longer inside the DPJ.

The six cannot be expelled or even severely reprimanded. After the defections to the LF and the Green Wind in July, the DPJ is left with 85 members in its House caucus, only one member more than the Liberal Democratic Party. Were the six traitors of Friday to leave the DPJ, the party would fall to the #2 rank in the House, losing the majority of committee chairmanships and most likely the position of President of the House.

Ozawa knows the DPJ's loss of control of the House's chairmanships would eliminate his ability to influence politics. It should surprise no one that he has his acolytes remain inside the DPJ House of Councillors caucus.

Speaking of disobedience, the LDP has decided upon the punishments to be meted out to the seven of its members of its House of Representatives delegation who defied orders to abstain from voting on the no confidence motion against the Noda Cabinet. The seven will receive reprimands, the second strongest of the eight levels of punishment the party can mete out to its members. (J)

This slap on the wrist is surprising, as one of the sinners, Nakagawa Hidenao, was served with a six-month suspension of all party privileges for having abstained from the June House of Representatives vote on the consumption tax.

The leadership had solid reasons to be lenient. The participation of Shiozaki Yasuhisa in the mini-mutiny was a transparent threat of a greater hard-right rebellion against Machimura faction leader Machimura Nobutaka for his milquetoast leadership and his support of LDP president Tanigaki Sadakazu. A severe punishment could also push Koizumi Shinjiro to run in the next election as an independent, an outcome the LDP is desperate to avoid. Koizumi the Younger (Koizumi IV) is, as Okumura Jun has put it, the LDP’s Chosen One, the prophesied future leader of the party.

It would furthermore be the height of hypocrisy for the LDP to punish the seven for voting for a no confidence motion only a day after Tanigaki and the LDP leadership abandoned plans to submit their own no confidence motion.

So the six DPJ House of Councillors and the seven LDP House of Representatives members, traitors to the party line each and every one, are virtually untouchable.

The weak responses by both the party leaderships presages further breakdowns in party discipline. An inability to get a straight answer from the LDP will endanger Prime Minister Noda’s plan to squeeze the LDP into voting for the bill authorizing the issuance of new bonds. The LDP leadership is eager for a quick deal on a redistricting bill – a necessity as the dissolution of the House and the calling for new elections would plunge the country into an irrevocable extra-constitutional state. However, if the LDP cannot guarantee party unity on the bond bill, it is of little use to the DPJ as a negotiating partner.

Of course, what can be said of the LDP applies equally, if not more so, to the DPJ. True to the nature of its former leader Ozawa, who recruited the majority of the DPJ’s serving Diet members, party members seem to have only the weakest of understandings of the fundamental importance of loyalty to the party. Disagreements over policy have thus led to a splintering of the party, not along the ideological lines the pundits predicted three years ago, but on the degree of loyalty to Ozawa the person.

Later - This post has been edited for clarity.

He Did It

PLEASE WAIT LOADING ,,,,,,,,, That is the takeaway for this weekend.

Decades ago this blessed land's bureaucrats and the research arm of the Liberal Democratic Party established that government finances faced a demographic wall, where the European-style social welfare benefits and United States-levels of taxation would collide with a wave of retirees, necessitating either:

1) mass privatization of government functions

2) reversals in the promises made to the citizens

3) higher taxation

4) potentially hyper-inflationary levels of government indebtedness, or

5) a combination of the above.

The solution the bureaucrats and the LDP proposed was a consumption tax, with an initial target rate of 10%.

It has taken thirty years to walk the walk from realization to realization. At least three prime ministers have had their heads handed to them over the tax, first for the imposition of a nominal 3% tax, then for each step of the march up to 10%.

However, on Friday, with every political instinct and a slug of economic analysis pulling in the opposite direction, Prime Minister Noda Yoshihiko managed to drag an opposition-controlled House of Councillors over the goal line.

The political costs have been enormous. Noda will most likely be rewarded, as he should be, with reelection as party president in September. However, he will preside over a much diminished Democratic Party of Japan, over 60 members of which have decamped in one way or another over the consumption tax. The Cabinet's and the DPJ's opinion polling numbers are in the cellar, with an election looming.

One can hate the raising of the consumption tax...and a lot of folks do, for reasons both intellectually sound and transparently selfish.

However, one cannot, no, one must not deny the bravery and tenacity of the prime minister, who sacrificed political blood and capital his party could not spare. When all the sirens are singing sweet songs about how cheaply the government can borrow money, Noda and his wounded party have sent a signal to the holders of Japan's bonds that the government of this blessed land will make good upon its debts through a willingness to both inflict pain and accept annihilation.

Rushing Forward With No Confidence

PLEASE WAIT LOADING ,,,,,,,,, On Sunday, I put forth the proposition that Koizumi Shinjiro's visit to Liberal Democratic Party headquarters accelerated LDP moves toward submitting either a no-confidence motion against the Cabinet or a censure motion against prime minister Noda Yoshihiko. Koizumi, walking very much in his father's footsteps and also reflecting his long stint in Washington, has become the face of the free market/low tax wing of the LDP, especially since The Big Man, Nakagawa Hidenao, has been put on ice.

In pushing a plant to threaten the PM with a no-confidence motion or censure, Koizumi was also the representative of the members of the LDP who had resigned themselves to the June 15 three-way LDP, the New Komeito and Democratic Party of Japan agreement to vote for consumption tax bill in both Houses of the Diet. Not a few in the LDP were sure the consumption tax issue would lead to the breakup of the DPJ.

The controversy over the raising of the consumption tax did indeed lead to a breakup, with Ozawa Ichiro leading his followers out of the DPJ. However, to the disappointment of those who thought the breakup would result in the DPJ-led coalition losing its majority in the House of Representatives, Ozawa led out of the DPJ only about half of the legislators purportedly under his influence -- well short of the number of rebels needed to transform the DPJ-led coalition into a minority government.

When Koizumi and his six youthful fellow LDP members bullrushed the office of the LDP party president, however, they were pushing on an open door. LDP president Tanigaki Sadakazu has known that in order for him to win reelection in the party presidential election in September, he had to have something to show for his first term.

He had to foment a crisis, and in this month.

The dispute over the date of the House of Councillors vote on the consumption tax was too small potatoes for this purpose, at first glance. The LDP proposed to have the vote on the 10th; the DPJ and Prime Minister, wanting delay action in the Diet so that they might cut deals on legislation with Tanigaki's successor, proposed a vote on the 20th.

The DPJ offer was only an initial bargaining position, though. The party's negotiators, in talks with LDP and New Komeito representatives, indicated the August 10th date was acceptable. (J)

Taken aback, the LDP violated all normal negotiating procedures and proposed a vote on the 8th -- a counter proposal to which the DPJ, while indulging in the requisite amount of whining at the LDP's duplicity, agreed to yesterday. (J)

Of course, in the meantime, in the face of the DPJ's violent accommodation to every one of the LDP's wishes, the LDP presented a further demand -- that Prime Minister Noda make a public commitment (kakuyaku) to dissolve the Diet after the House of Councillors vote on the consumption tax legislation. Otherwise the LDP would submit either a no-confidence motion or a censure motion or both.

The Prime Minister, who if anything is calm and controlled in his responses, told the LDP yesterday that the dissolution of the Diet was his problem, the timing of which was up to him and nobody else (J). A seemingly now hysterical LDP leadership responded by vowing to go through with its threatened submission of a no-confidence motion or a censure motion today, and to renege on the June 15 agreement. (J)

It is a rare thing when the representatives of a small religious party have to pay a visit to the headquarters of a large secular party in order to tell the secular party "Calm down or else." Nevertheless, that is what leaders of the LDP's longtime ally the New Komeito, their faces grim, had to do last night (J). Presumably they explained to their LDP counterparts that if an election were held, the LDP-New Komeito alliance would lack a majority in either House of the Diet -- and that no third party would cut any deals on passage of legislation with an LDP that has a history of backing out of major, signed agreements.

So all by indications, Tanigaki has triggered the political crisis he needed. Unfortunately, it seems to be leading to his own private Waterloo, rather than the overthrow of the Noda government he has desired.


Later - This post has been edited for clarity.

One Point Of Light To Look For In The Murk

PLEASE WAIT LOADING ,,,,,,,,, Today is likely to be rough day in Japanese politics.

Ozawa Ichiro is going to unveil his new political party, provisionally named "The People's Livelihood Comes First" Party (Michael Penn has provided a very convenient shorthand: "The Livelihood Party"). At this writing, the Livelihood Party will burst onto the scene with 49 Diet members: 37 from the House of Representatives and 12 from the House of Councillors (J).

All in all, 51 members of the DPJ have left the fold since July 2. The most recent defector is Yonenaga Harunobu, a Hatoyama Group member, who turned in his resignation papers on July 6. As Yonenaga is a House of Councillors member, his leaving the party over the consumption tax bill prior to the vote on that bill represents an embarrassing loss of face for the Democratic Party of Japan. However, Yonenaga, a district seat holder from Yamanashi, has chosen to serve, at least for now, as an independent, lessening the impact of his departure.

It will surprise no one if Yonenaga shows up at the meeting this evening introducing the establishment of the Livelihood Party. Almost certain to be in attendance will be fellow DPJ defector turned independent, Zukeran Chobin, as he made clear on his blog yesterday he will be caucusing with the Livelihood Party. (J)

It will also surprise no one if the entire membership of the Kizuna shows up at the meeting, with Kizuna leader Uchiyama Akira announcing his party's merger with the Livelihood Party. With Ozawa now out of the DPJ, Kizuna's raison d'être has evaporated.

With Kizuna's nine members and the cooperation of Zukeran and the three former DPJ members in Shinto Daichi, Ozawa will have 50 sure votes in the House of Representatives, one short of the 51 he needs to table a no-confidence motion against the Noda Cabinet.

Which makes moves of one sure guest at the unveiling unfortunately significant.

Former DPJ party leader Hatoyama Yukio has, through his behavior in the last week, transformed himself from DPJ-co-founder-yet-Ozawa-puppet into a DINO - a Democrat In Name Only. On June 26 he voted against the consumption tax bill, for which he was smacked on July 3 with a six-month suspension of party privileges. He complained about this punishment, with some party members suggesting that slapping a 6 month penalty on Hatoyama while hitting other opponents to the bill with two months suspensions was disproportionate. In a gesture that Hatoyama should have accepted graciously, the party central secretariat reduced his suspension to only three months on July 9.

Ever able to miss seize an opportunity to miss an opportunity*, Hatoyama, already in the hottest of water for boasting that he and his followers held the casting votes should there be a move to depose the Noda Cabinet through a no confidence motion (J), piled it on yesterday, saying not that he did not see why he deserved to be disciplined but -- and I am not making this up:

"There is an extremely insulting phrase making its way around. The phrase is 'the LDP's Noda Faction'."

Typically gutless in its presentation -- "It's not what I am saying, mind you. It's what I have heard, that's all" -- Hatoyama's insult is grounds for the imposition of a full year's suspension.

Except, of course, doing anything to Hatoyama right now will provide a pretext for him and perhaps a smattering of his followers to leave the DPJ, magnifying the impact of today's unveiling of the Ozawa party.

As it is, the leadership will likely sit tight-lipped, seeing whether or not Hatoyama has the wherewithal to actually quit the DPJ. He will be a prominent guest at the unveiling today -- but unless he actually shows up at Secretary-General Koshi'ishi Azuma's office with resignation papers in hand, he is just tossing out his usual b------t, using Harry Frankfurt's definition for the kinds of noises Hatoyama makes.

The one person whose attendance will really matter, if it happens, will be Fukuda Eriko. I have highlighted her before. However, rather than just being an Ozawa Girl, she has been the brains and conscience of the anti-consumption tax movement. She considered not voting on the bill, for she saw the fight over the consumption tax shifting from being a struggle over policy (seiji) to struggle over power (seikyoku), with the only beneficiary being the opposition Liberal Democratic Party. In a last minute change of heart she voted against the bill, thinking "I may not be reelected. But unless I commit myself now to the cause, I will regret it the rest of my life." (J)

Fukuda received the same two month suspension as the other DPJ members other than Hatoyama who voted against the consumption tax bill. She had, however, voted with the government on the establishment of a national commission to debate the minimum pension and other social welfare programs, while voting down the unneeded bill on the merger of the nation's kindergartens and day care centers - making her one of only two DPJ members to vote this conscientious way.

Though only 31 years old, an Ozawa pick and a first-termer, Fukuda is one rebel to whom the DPJ and Prime Minister Noda must pay attention and, if they are smart, total respect.

If Fukuda shows up at tonight's unveiling, the indication will be that the DPJ is in serious, serious trouble.

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* A borrowing of Abba Eban's famous exasperated characterization of his Arab counterparts.

Very Kind Of Them #12

PLEASE WAIT LOADING ,,,,,,,,, The good folks at the East Asia Forum have taken a long-winded, meandering stem-winder of an essay, distilled it to its essentials, and posted the result on their website:

Ozawa’s departure, the revival of the DPJ and the future of Japan

They have also very kindly provided a link to all my EAF contributions:

http://www.eastasiaforum.org/author/michael-cucec/

as well as an RSS feed:

http://www.eastasiaforum.org/author/michael-cucec/rss

For a completely different take on the resignations, please read Aurelia George Mulgan's EAF essay of July 3:

Can Ichiro Ozawa repeat history in Japan?

especially the final paragraphs, where Dr. Mulgan identifies the crucial difference between this Ozawa-led breakup of a party and all his previous ones: this time, he is not the one walking away with the cash.