By Bob Blandeburgo Associate Editor Money Morning

Stimulus measures in Japan helped the world’s second-largest economy grow at its fastest pace in more than two years, but it’s unlikely policymakers will reduce spending despite the nation’s rapidly growing debt.

Gross domestic product (GDP) in Japan grew at 4.8% annual rate in the third quarter, surpassing all the forecasts of 20 economists polled by Bloomberg News. That follows a revised gain of 2.7% in the three months ended June 30, according to Japan’s Cabinet Office. Japan’s economy grew 1.2% on a quarterly basis.

“The turnaround in public investment has definitely contributed to the rebound in GDP, so if they do start to cut it’ll weigh on growth,” Hiromichi Shirakawa, chief Japan economist at Credit Suisse Group AG (NYSE ADR: CS), told Bloomberg.

Stimulus measures around the world helped Japan’s exports grow 6.4%, but as global economies withdraw stimulus measures,

...

TODAY: Russia relenting on Iran sanctions; calls missile defense decision constructive; arms reductions talks are apparently progressing apace; Medvedev urges for Middle East arms cuts too.  Island cooperation for Japan and Russia; Georgia undecided on Guantanamo guests; Poland - officially - condemns Soviet invasion. Moscow mayor doesn't take criticism lightly. President Medvedev has apparently agreed following talks with Barack Obama to consider sanctions if Iran does not agree to transparency about its nuclear program. 'Sanctions rarely lead to productive results but in some cases are inevitable', the Russian president has said.  'The sanctions Medvedev has in mind might fall far short of those that the White House are thinking of', suggests a piece in the Guardian.  The ...

Japan’s Historic Moment Creates Historic Confusion

by Ryan Cole, Investment U Research Team

The dust is settling in Japan, and the only thing we know for sure is that no one can agree… on anything.

With the new government in office – the first real time Japan has been ruled by any group other than the Liberal Democratic Party (LDP) since the country became a democracy – there’s plenty of mystery and not much clarity, though everybody seems to have an opinion.

One commentator says government stimulus is about to go wild: Buy Japanese everything, she preaches, especially banks. But another disagrees: The too-cozy relationship between Japan’s government and contractors is now over, he maintains, so short Japanese construction. A third claims not much will change: Japan is a conservative ship that turns slowly, if at all. Yet still another says we’ve never really known Japanese ...

[Editor's Note: When it comes to global investing, longtime market guru Martin Hutchinson is one of the very best - because he knows the markets firsthand. After years of advising government finance ministers, crafting deals with global investment banks, and analyzing the world's financial markets, Hutchinson has used his creative insights to create a trading service for savvy investors.

The Permanent Wealth Investorassembles high-yielding dividend stocks, profit plays on gold and specially designated “Alpha Bulldog” stocks into high-income/high-return portfolios for subscribers. Hutchinson’s strategy is tailor-made for periods of market uncertainty, during which investors all too often go completely to cash – only to miss some of the biggest market returns in history when market sentiment turns positive. But it can work in virtually every market environment.

To find out about this strategy – or Hutchinson’s new service, The Permanent …

I am rushing but would be remiss, of course, if I did not mention Sunday's landslide victory of the DPJ in Japan which marks an end to a +50 year reign of the conservatives.

from the BBC;

The DPJ has won 300 seats in the 480-seat lower house, ending 50 years of almost unbroken rule by the Liberal Democratic Party (LDP), NHK TV says. DPJ leader Yukio Hatoyama hailed the win as a revolution and said people were "fed up" with the governing party.

Prime Minister Taro Aso has said he will resign as head of the LDP, taking responsibility for the defeat. Japan is suffering record unemployment and its economy is struggling to emerge from a bruising recession.The DPJ has said it will shift the focus of government from supporting corporations to helping consumers and workers.

and here is the Economist;

IN A land of volcanoes and earthquakes

...