With a historic supermajority behind her, Prime Minister Sanae Takaichi is accelerating defense spending, challenging China, and testing the limits of Japan’s pacifist constitution.

Japan has entered a new political era. Prime Minister Sanae Takaichi and her ruling Liberal Democratic Party (LDP) have secured a landslide parliamentary victory — one powerful enough to reshape the country’s postwar security identity.

For the first time since its founding in 1955, the LDP now controls a two-thirds supermajority in Japan’s lower house. That margin is not symbolic — it is transformative. It gives Takaichi the political muscle to override opposition resistance and pursue constitutional revisions that once seemed politically impossible.

The question echoing across Asia now is simple but profound: Is Japan about to shed its pacifist skin and become a more assertive military power?

Continuing Shinzo Abe’s Vision of a “Strong Japan”

akaichi has openly positioned herself as the political heir to former Prime Minister Shinzo Abe, who famously pledged to “restore a strong Japan.”

During Abe’s eight-year tenure, Japan adopted what he called “proactive pacifism.” That phrase marked a subtle but significant shift. Under his leadership, Japan:

• Strengthened the Self-Defense Forces
• Lifted long-standing bans on arms exports
• Deepened ties with NATO and the European Union
• Expanded the Quad partnership with Australia, India, and the United States
• Reinterpreted the constitution in 2014 to allow “collective self-defense”

That reinterpretation meant Japan could aid an ally under attack — a dramatic departure from decades of rigid pacifism.

Takaichi now wants to take those reforms even further.

Confronting China and the Taiwan Question:

Shortly after becoming prime minister, Takaichi triggered diplomatic friction with Xi Jinping’s government by suggesting Japan would come to Taiwan’s defense if China launched an attack.

Beijing reacted swiftly.

China issued sharp warnings, applied economic pressure, and discouraged Chinese tourism to Japan. Officials accused Takaichi of destabilizing the region and threatening the international order.

But the prime minister did not retreat.

Instead, she appears to be using China’s assertiveness as political leverage at home. Public sentiment in Japan has shifted significantly in recent years amid rising concerns about Chinese military activity in the East China Sea and around Taiwan.

Following the election, 69% of voters expressed approval of Takaichi’s cabinet performance — a sign that the electorate may be more open to defense expansion than at any point since World War II.

A Military Expansion at Record Speed

Takaichi’s government is preparing to revise Japan’s 2022 National Security Strategy. Her approach blends national security with economic and industrial policy — what she calls “crisis management.”

Despite Japan’s mounting public debt, she has already increased defense spending to 2% of GDP ahead of schedule, aligning with NATO benchmarks. And she has pledged to go further.

Key proposals include:

• Acquiring nuclear-powered submarines
• Further deregulating arms exports
• Allowing the transfer of lethal weapons
• Expanding intelligence capabilities
• Establishing a National Intelligence Bureau modeled after the CIA
• Passing a new anti-spy law

Japan has already taken bold steps. It permitted exports of Patriot PAC-3 air defense systems to the United States to replenish stocks sent to Ukraine and Israel. It agreed to sell Mogami-class frigates to Australia and is co-developing a next-generation fighter jet with Italy and the United Kingdom.

While Japan’s military aid to Ukraine remains non-lethal, participation in NATO-led initiatives signals a widening security role far beyond East Asia.

A Turning Point for Asia

Ten years ago, Angela Merkel was described as the “leader of the free world.” Today, some commentators are calling Takaichi the “world’s most powerful woman.”

Whether that title proves accurate will depend on how she balances assertiveness with diplomacy.

If Japan rewrites its pacifist constitution, expands arms exports, and deepens security ties with NATO, it could alter the balance of power across the Indo-Pacific.

Yet the risks are equally significant. A more militarized Japan could provoke stronger reactions from China and heighten regional tensions.

For now, one thing is certain:

Japan is no longer quietly sitting on the sidelines of global security politics. Under Sanae Takaichi, it is preparing to step forward — boldly and unapologetically.

Rising interest rates, job market shocks, and global tension — what’s dragging the US economy into recession now?

The word recession is back in headlines in America — and for good reason. From Wall Street to Washington, fears are rising that the United States may be on the brink of an economic downturn once again in 2025. But what’s really driving this potential collapse? And more importantly — how did we get here?

Here’s a breakdown of why America is facing recession and what this means for everyday citizens.

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1. Aggressive Interest Rate Hikes by the Federal Reserve

The Federal Reserve, led by Chair Jerome Powell (Wikipedia), has been increasing interest rates since 2022 in a bid to tame runaway inflation. But in doing so, they’ve made borrowing costlier — for everything from homes and cars to business loans.

• Mortgage rates have topped 7%, pricing many buyers out of the housing market.
• Credit card interest is now above 20% for most Americans.
• Small businesses are pausing expansion due to high lending costs.

While the Fed’s intent was to slow inflation, the collateral damage may be a full-blown economic slowdown.

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2. The Housing Market Is Cooling Fast

After the post-pandemic housing boom, the market is starting to freeze. Home sales have dropped, new construction is slowing, and foreclosures are on the rise.

According to the National Association of Realtors, pending home sales are at a 10-year low.

For many middle-class families, a weak housing market affects both net worth and consumer confidence — two key drivers of recessionary behavior.

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3. Job Market Is Starting to Crack

Though the U.S. unemployment rate still appears low on the surface (~3.9% as of July 2025), cracks are forming:

• Tech layoffs have returned, with companies like Google, Meta, and Salesforce slashing thousands of roles.
• Retail and logistics are cutting seasonal jobs amid weak demand.
• Gig workers and part-timers report lower earnings month-over-month.\

Wages have also stagnated while inflation eats into purchasing power — a toxic combo that hurts lower-income households the most.

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4. Global Uncertainty and Trade Tensions

The global stage isn’t helping either. The Ukraine war rages on. Tensions between the U.S. and China remain high over Taiwan and trade tariffs. Oil prices are spiking again due to instability in the Middle East.

A report by Bloomberg Economics estimates global trade has contracted by nearly 6% compared to last year.

As Indo-US trade negotiations are ongoing, the tariffs imposed by Donald Trump on countries across the world are set to impact the U.S. economy, raising import costs, disrupting trade flows, straining global supply chains, and ultimately weighing down its own GDP. pic.twitter.com/0xfxZzNGu6

— infoindata (@infoindata) July 10, 2025

As a result, American exporters are hurting, and global supply chains remain fragile. The U.S. is deeply linked to international trade, and global unrest always echoes back at home.

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5. Consumers Are Finally Pulling Back

For months, U.S. consumers were propping up the economy with spending — but that might be ending. Americans are now:

• Slashing discretionary purchases
• Using up their pandemic-era savings
• Relying more on Buy Now, Pay Later schemes and credit cards
• Delaying travel, upgrades, and luxury buys

When consumer confidence dips, recessions become self-fulfilling prophecies. And right now, surveys show optimism is at a 3-year low.

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6. Corporate Earnings Are Missing Targets

Big companies like Walmart, Apple, and Amazon are warning shareholders of lower-than-expected profits. That’s a big sign of shrinking economic momentum.

• S&P 500 earnings growth has turned negative for the last two quarters.

Shares of US firms that miss profit estimates are falling by the most in four years: Bloomberg Intelligence pic.twitter.com/MmROClQ5T9

— Lisa Abramowicz (@lisaabramowicz1) October 23, 2023

• Companies are freezing hiring, bonuses, and travel budgets.
• Stock market volatility is rising, making investors nervous.

If corporate America is nervous — we all should be.

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7. Yield Curve Inversion — A Classic Recession Signal

One of the most reliable predictors of a U.S. recession is a phenomenon known as yield curve inversion — when long-term interest rates fall below short-term ones. This has now occurred and stayed inverted for over 12 months, something not seen since just before the 2008 financial crash.

Historically, when this happens, a recession follows within 12–18 months.

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So… Is America Already in a Recession?

That depends on who you ask.

The government has not officially declared a recession, as GDP remains positive — barely. But to millions of families living paycheck-to-paycheck, it already feels like one.

Prices are high. Bills are mounting. Layoffs are creeping in. Confidence is falling.

“Whether or not the NBER calls it, this is a rolling recession — different sectors are falling one by one,” says economist Diane Swonk.

Read More: Daily Global Diary

Barack Obama is the 44th President of the United States, Nobel Peace Prize laureate, author, and film producer whose journey from community organizer to global icon is unparalleled. As of 2025, Barack Obama’s estimated net worth is around $70 million, accumulated through book royalties, public speaking, production deals, and real estate investments.

His post-presidential legacy goes beyond politics—it’s a story of building a media and cultural empire that continues to shape his public persona.

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Early Life and Background

Born on August 4, 1961, in Honolulu, Hawaii, Obama grew up between Hawaii and Indonesia. He graduated from Columbia University and earned a law degree from Harvard Law School, where he became the first Black president of the Harvard Law Review. Returning to Chicago, he worked as a community organizer and law professor before entering politics.

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Career Highlights

• 2004 DNC Speech: His keynote address launched him onto the national stage and boosted sales of Dreams from My Father.
• U.S. Senate & Presidency: Elected to the Senate in 2004, became president in 2009, and served two terms with an annual salary of $400,000 .
• Bestselling Memoirs: Between 2009–2017, he earned $15.6 million in royalties, with a blockbuster $65 million Penguin Random House deal for A Promised Land.
• Higher Ground Productions: Co-founded with Michelle Obama in 2018, winning Oscars and Emmys, and securing multi-million-dollar deals with Netflix and Audible.

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Sources of Income

1. Book Deals & Royalties – Major earnings from memoirs like Dreams from My Father, The Audacity of Hope, and A Promised Land.
2. Speaking Engagements – Post-presidency, paid top-dollar fees for speaking at events.
3. Production Company – Higher Ground’s success in Hollywood adds ongoing revenue.
4. Real Estate Portfolio – Homes in Washington D.C., Chicago, and Martha’s Vineyard round out his assets.

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Net Worth Growth Over the Years

• 2008 (entering White House): ~$1.3 M
• 2017 (leaving office): Royalty-fueled increase, net worth ~ $12 M
• 2024–2025: Stabilized around $70 million

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Assets and Lifestyle

The Obamas live comfortably in D.C. and maintain private properties in Chicago and Martha’s Vineyard. Their real estate, combined with book and media earnings, forms the backbone of their financial success.