The holiday season is a time for expansive thoughts, and not just about waistlines. It allows people time to step back from the daily grind and think about how they could do things differently. Has lack of imagination blinded them to simple solutions? With a little effort, could they make 2013 a lot better?

For the rich world’s governments, the answer is yes. We offer three ways to improve confidence and increase growth in what otherwise looks like being a pretty bleak year. Regular readers will not be astonished to hear that all three involve trade liberalisation. This is, indeed, a theme we have returned to with some frequency since this newspaper was set up in 1843 to oppose Britain’s protectionist Corn Laws. But the gains to be had from sluggish rich countries opening their borders to each other’s goods and services look enticing. The world is less integrated than most people realise. And trade also offers a chance for liberal democracies to re-establish their credentials as the world’s guides towards prosperity.

According to the IMF, in 2013 America’s economy may grow by around 2%, Japan’s and Britain’s by 1% or so, and the euro zone’s will be lucky to grow at all. Policymakers in each of these economies could do plenty of things to improve this dour prognosis, but most involve unappealing choices. A further monetary boost may help add zip to the recovery, but risks producing asset bubbles. More fiscal expansion could help growth but could weigh governments down with extra debt.

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Understanding the developing attitude of the central banks, and the effects of their actions, obviously remains central for investors in all financial assets. The “big picture” for global financial assets, involving very low government bond yields and a gradual shift of risk appetite into credit and equities, is unlikely to change until one of two events takes place.

The first would be a decision by the central bankers themselves that the era of unlimited quantitative easing must end, either because of the risk of inflation and asset price bubbles, or because of concerns about fiscal dominance over the monetary authorities. The second would be a realisation by the markets that further action by the central bankers is irrelevant because they have run out of effective ammunition. Either of these events would probably remove the central prop from the equity bull market which began in March, 2009, but neither seems very likely in 2013.

There is certainly no sign that the central bankers themselves will call a halt to the extension of their balance sheets.

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Japan declared war on the United States and Great Britain, as of dawn, December 7. On that day, Sunday, Japanese dive-bombers and naval craft, without waming, attacked Pearl Harbor Naval Base and Hickam Field, Hawaii, and other American possessions in the Pacific. That same day, in Washington, at the same time as the assault, Ambassador Nomura and Special Envoy Kurusu were delivering in person to Cordell Hull, Secretary of State, the rejection by the Japanese Government of the American demands…. At once, following the Japanese assault, the American fleet in the Pacific, and the American air-force went into action against the Japanese aggressors. On Monday, December 8, one half hour after high noon, the President of the United States addressed a joint session of Congress. His address lasted little more than five minutes. After enumerating the series of attacks made by Japanese war forces on American possessions during the past forty-eight hours, he declared very plainly, that he asked that Congress declare that a state of war has existed since December 7, between the United States and Japan. Such are the facts in the final stages of the war with Japan that has, through long years, and in the past month, been regarded as inevitable.

The United States has been left no choice but to prosecute war against Japan with the full power of naval, air and army forces….

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Mr. Vice President, and Mr. Speaker, and Members of the Senate and House of Representatives:

Yesterday, December 7, 1941””a date which will live in infamy””the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan.

The United States was at peace with that Nation and, at the solicitation of Japan, was still in conversation with its Government and its Emperor looking toward the maintenance of peace in the Pacific. Indeed, one hour after Japanese air squadrons had commenced bombing in the American Island of Oahu, the Japanese Ambassador to the United States and his colleague delivered to our Secretary of State a formal reply to a recent American message. And while this reply stated that it seemed useless to continue the existing diplomatic negotiations, it contained no threat or hint of war or of armed attack.

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[Shusaku] Endo locates the point of contact between Japanese life and the Gospel in what he observes, and has experienced personally, to be the essence of Japanese religious awareness. This he sees as the sense of failure in life and the subsequent shame and guilt that leave a lasting impact upon a person’s life. Such theological notions as love, grace, trust, and truth are intelligible only in the experience of their opposites. Endo sees them incarnate in the person of Jesus through his own experience of failure, rejection, and, most of all, ineffectualness. Only rarely has modern Christianity presented the story of Jesus as the one to whom those who had failed, were rejected, lonely, and alienated could turn and find understanding and compassion. Endo argues that it is our universal human experience of failure in life that provides us with an understanding of Christian faith in its depth.

–Fumitaka Matsuoka, The Christology of Shusaku Endo, Theology Today (October 1982) [emphasis mine]

The US, Japan and the European Union have filed a case against China at the World Trade Organization, challenging its restrictions on rare earth exports.

US President Barack Obama accused China of breaking agreed trade rules as he announced the case at the White House.

Beijing has set quotas for exports of rare earths, which are critical to the manufacture of high-tech products from hybrid cars to flat-screen TVs.

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In the year since the largest quake in Japan’s recorded history, Christians have witnessed more than the walls of buildings come down. During Christianity Today’s recent travels through the quake zone, pastors and other Christian leaders said that the cultural and spiritual barriers that have for generations divided Christians from each other and from greater Japanese society have weakened in the aftermath.

“We’ve been called to remember in these months that the church really is the body of Christ,” said Joseph Handley, president of Asian Access, an interdenominational evangelical organization that works throughout Asia to develop Christian leaders.

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A combination of fewer people in the workforce and high levels of indebtedness leads to a very adverse economic environment, [Ajay] Kapur warned.

The aging population means that a serious reform of the social security and tax systems will be needed in Japan, said Chief Cabinet Secretary Osamu Fujimura at a press conference held Monday, according to a Feb. 1 report by the Daily Yomiuri Online.

In 1960 one retiree was supported by 11.2 workers. In 2010, one retiree was supported by only 2.8 workers. By 2060, it is expected there will be just 1.3 workers per retiree.

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O God our Father, who art the source of strength to all thy saints, and who didst bring the holy martyrs of Japan through the suffering of the cross to the joys of life eternal: Grant that we, being encouraged by their example, may hold fast the faith that we profess, even unto death; through Jesus Christ our Lord, who liveth and reigneth with thee and the Holy Spirit, one God, now and for ever.

For more than half a century, members of the Pearl Harbor Survivors Association gathered here every Dec. 7 to commemorate the attack by the Japanese that drew the United States into World War II. Others stayed closer to home for more intimate regional chapter ceremonies, sharing memories of a day they still remember in searing detail.

But no more. The 70th anniversary of the Pearl Harbor attack will be the last one marked by the survivors’ association. With a concession to the reality of time ”” of age, of deteriorating health and death ”” the association will disband on Dec. 31.

“We had no choice,” said William H. Eckel, 89, who was once the director of the Fourth Division of the survivors’ association, interviewed by telephone from Texas. “Wives and family members have been trying to keep it operating, but they just can’t do it. People are winding up in nursing homes and intensive care places.”

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Boeing Co. handed over the key for its first 787 wide-body jet to All Nippon Airways on Monday after years of delays, marking a long-awaited milestone in the history of commercial flight.

Thousands of workers gathered for the ceremony at Paine Field, outside the building where the planes are assembled, with many finding shelter from the rain under the wings of two yet-to-be-delivered 787s. The actual first ANA 787 was nearby at the Future of Flight aviation center, where it was being prepared for a reception Monday night and its flight to Japan today. The plane goes into service in November.

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Nick Pratto connected for a two-out, bases-loaded single in the bottom of the sixth inning to lead Huntington Beach’s Ocean View team to the Little League World Series championship.

Ocean View beat Hamamtsu City, Japan, 2-1, and became the seventh team from California to win the title.

Both teams had scored in the bottom of the third inning, and the game stayed tied until Pratto’s decisive single into right-center field.

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This was the subject of today’s Adult Sunday school. Make sure you did not miss Walter Russell Mead‘s piece wherein he uses Daniel 5 as a means by which to understand our times. His reflections formed the basis of our deliberations–KSH.

They never gave up–congratulations to them.

Japan have recorded a famous 1-0 extra-time win to eliminate reigning champions and host nation Germany from the 2011 FIFA Women’s World Cupâ„¢ and reach the semi-finals for the first time.

Substitute Karina Maruyama scored the decisive goal on 108 minutes as Germany suffered a first defeat for 16 matches, dating back to the quarter-final stage at USA 1999. Japan will now face the winner of Sunday’s semi-final between Sweden and Australia.

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Economists have found themselves repeatedly making excuses. First it was the snowstorms. Then it was Japan’s earthquake, tsunami and nuclear disaster which crimped the supply of parts to car assembly plants in America. Then, as the snow melted, floods ravaged Arkansas, Mississippi, Missouri and Tennessee, and tornadoes battered Alabama and Missouri. America has suffered five incidents of extreme weather this year, each inflicting at least $1 billion in damage.

The most important special factor has been petrol. Prices jumped from $3 per gallon at the end of December to $3.90 in early May. That has siphoned off much of the purchasing power that consumers should have extracted from December’s tax agreement and subsequent gains in employment. Total consumer spending rose at just a 6.7% annual rate in the three months to the end of April, but most of that increase was eaten up by inflation. Real spending grew by a paltry 2.2%.

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An intensely toxic court case which shattered Japanese society, ended today with a 30-month prison sentence for a man who was once the country’s most prominent entrepreneur….

Mr [Takafumi] Horie’s eradication as a political and corporate trailblazer also marked the beginning of the end of prime minister Junichiro Koizumi’s supposedly reformist era.

It was a five-and-a-half year stint in which the charismatic politician persuaded both Japan and the outside world that he had placed the country on a new tack. Retrospective analysis of his period in power suggest his practical impact had been almost entirely undone by about 2009.

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[Shusaku] Endo locates the point of contact between Japanese life and the Gospel in what he observes, and has experienced personally, to be the essence of Japanese religious awareness. This he sees as the sense of failure in life and the subsequent shame and guilt that leave a lasting impact upon a person’s life. Such theological notions as love, grace, trust, and truth are intelligible only in the experience of their opposites. Endo sees them incarnate in the person of Jesus through his own experience of failure, rejection, and, most of all, ineffectualness. Only rarely has modern Christianity presented the story of Jesus as the one to whom those who had failed, were rejected, lonely, and alienated could turn and find understanding and compassion. Endo argues that it is our universal human experience of failure in life that provides us with an understanding of Christian faith in its depth.

–Fumitaka Matsuoka, The Christology of Shusaku Endo, Theology Today (October 1982) [emphasis mine]

The overall impact of earthquake and tsunami according to the government has been:

Death: about 13,200 people
Missing: about 14,300 people
Displaced: about 167,000 people
Totally demolished homes: 52,800 homes

Most damage has been caused by the tsunami rather than earthquake itself. In addition we are facing the potential impact of nuclear radiation caused by malfunction of the nuclear power plant. We are experiencing many aftershocks with some of them causing more damage to already weakened structures.

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Japanese authorities have raised the severity rating of their nuclear crisis to the highest level, seven.

The decision reflects the total release of radiation at the damaged Fukushima Daiichi power plant, which is ongoing, rather than a sudden deterioration.

Level seven previously only applied to the 1986 Chernobyl disaster, where 10 times as much radiation was emitted.

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Two weeks have passed since the devastating earthquake on the 11th March. At least I have been able to visit the devastated area in Sendai. The night of the 26th March I flew from Tokyo to Yamagata Airport. The next morning I entered Sendai City. Sendai is the main city of the Tohoku region where the Cathedral of Tohoku Diocese of Nippon Sei Ko Kai (the Anglican Church in Japan) is located.

On Sunday morning, I visited the Cathedral (Sendai Christ Church) and saw that parts of the walls had fallen down, the walls were cracked. It looked to me as the whole building was lopsided. On the floor of the Cathedral there were various piles of goods sent from churches in different parts of Japan such as foodstuff, fuel and clothing. Because of the frequent aftershocks, the church council members have decided that it is too dangerous to use the Cathedral for worship, so they are having services in the nearby church hall.

In Sendai City they have restored water and electricity supplies, but the supply of gas to houses has not been restored. Although food is available it is still very difficult to get hold of petrol and other fuel. So some of the parishioners who gathered for worship on the Sunday walked a long distance to get there. Due to the continuing aftershocks, some people go to bed fully clothed, wearing shoes. There are those who have not slept at all since the earthquake and look exhausted. The Bishop of Tohoku Hiromichi Kato who preached at eucharist, he tried to encourage the congregation by saying that their faith would lead them to hope even through the hardship and difficulties of the present situation.

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Chancellor Angela Merkel’s conservatives lost power in their German heartland after nearly six decades, initial poll results showed Sunday, with the Greens likely to lead their first state government.

Merkel’s Christian Democrats (CDU) have ruled Baden-Wuerttemberg since 1953, but anger over her nuclear policy in light of the Japan crisis as well as decisions on Libya and the euro drove away voters in the run-up to the poll.

The anti-nuclear Greens claimed about 24 percent of the vote — about 12 point higher than five years ago — and were likely to form a coalition with the Social Democrats, who garnered about 23 percent in the rich state.

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The Japanese electricians who bravely strung wires this week to all six reactor buildings at a stricken nuclear power plant succeeded despite waves of heat and blasts of radioactive steam.

The restoration of electricity at the plant, the Fukushima Daiichi Nuclear Power Station, stirred hopes that the crisis was ebbing. But nuclear engineers say some of the most difficult and dangerous tasks are still ahead ”” and time is not necessarily on the side of the repair teams.

The tasks include manually draining hundreds of gallons of radioactive water and venting radioactive gas from the pumps and piping of the emergency cooling systems, which are located diagonally underneath the overheated reactor vessels. The urgency of halting the spread of radioactive contamination from the site was underlined on Wednesday by the health warning that infants should not drink tap water ”” even in Tokyo, 140 miles southwest of the stricken plant ”” which raised alarms about extensive contamination.

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Hundreds of people at a Vancouver church offered prayers and donations Sunday for the victims of the Japanese earthquake and tsunami, as they were told not even religion could explain the unspeakable tragedy that has befallen the east Asian country.

The 130-year-old Christ Church Anglican Cathedral in downtown Vancouver held a service Sunday afternoon that alternated between English and Japanese, bringing together Japanese-Canadians, members of other local Anglican congregations and people from outside the faith — many still coming to grips with the devastation unfolding across the Pacific.

The 9.0-magnitude earthquake and tsunami have together killed at least 8,600 people, with nearly 13,000 still missing and another 452,000 living in shelters. They have also sparked a continuing crisis at the damaged Fukushima Dai-ichi nuclear plant which has been leaking radiation since the natural disasters.

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In response to a growing desire to donate as well as pray for the beleaguered nation of Japan, agencies and Churches of the Communion have been setting up avenues for giving.

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The government said Saturday that it had found higher than normal levels of radioactive materials in spinach and milk at farms up to 90 miles away from the ravaged nuclear power plants, the first confirmation by officials that the unfolding nuclear crisis has affected the nation’s food supply.

While officials played down the immediate risks to consumers, the findings further unsettled a nation worried about the long-term effects of the damaged nuclear power plants.

The Tokyo Electric Power Company, with help from the Japan Self-Defense Force, police officers and firefighters, continued efforts to cool the damaged reactors on Saturday to try to stave off a further fuel meltdown and stem the radiation leak. The latest plan involved running a mile-long electrical transmission line to Reactor No. 2 at the Fukushima Daiichi Nuclear Power Station to try to restore power to its cooling system.

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The Bishop of Tohoku, the Rt Rev John Hiromichi Kato, said that the affected area was very wide and diocesan staff had not been able to visit all areas.

One member of St John’s Church, Isoyama, has been confirmed dead but there has still been no news of the tiny church’s other seven members.

“We pray that they are all safe in some temporary shelter,” said Bishop Kato.

The diocese’s main church, Christ Church Sendai, has still not been able to locate some of its members.

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A week after their lives were turned upside down by the biggest recorded earthquake in Japan’s history, many survivors are too shocked to contemplate the future.

“My house does not exist anymore. Everything is gone, including money,” said Tsukasa Sato, a 74-year-old barber with a heart condition, as he warmed his hands in front of a stove at a shelter in Yamada, northern Japan.

“This is where I was born, so I want to stay here. I don’t know how it will turn out, but this is my hope.”

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This is the 91-word prayer [Jennifer] Phillips composed:

Merciful God, in your hands are the caverns of the earth and the heights of the hills: our times also are in your hands. Hear our prayers for those suffering in the aftermath of the earthquake and tsunami in Japan; soothe those in distress; watch over those trapped and hoping for rescue; comfort the bereaved; strengthen those who labor to help others, lift up those who cannot help themselves; and in every danger be their very present help by the power of your Holy Spirit; we pray in Jesus’ name. Amen.

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Many of the children taking refuge at the Kama Elementary School, on the eastern fringes of the town of Ishinomaki, are playing in the corridors or helping their parents scrub mud-coated boots in the filthy water of the school pool.

But the atmosphere in the room on the third floor, where 30 children whose parents simply disappeared when the tsunami swept through the town, is very different.

Viewed through the window, the children sit more still and are apparently engrossed in books or card games. They are watched over by other relatives or teachers and we are not allowed to enter or speak with them. Understandably, they do not want their charges to have more reminders of the disaster that has befallen them.

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