Bill Clinton: “Well, I agree with you. [Laughter] I agree with you. Here's the problem we're going to run into with Japan on the trade…”

“Well, I agree with you. [Laughter] I agree with you. Here's the problem we're going to run into with Japan on the trade issue. We have made real progress over the last 4 years in our trading relations with Japan. It's become a real joy to be able to meet and work with Japan where trade was an issue, but not the only issue, and where we really thought we could identify the issues and make progress on them, that there was no big structural war going on, economic war, between the United States and Japan. And I think it has obviously not been bad for Japan either. I think it's been good for both of us. Now, the Prime Minister has reaffirmed his commitment to a domestic demand-led growth strategy for Japan and has put forward a very ambitious plan for internal reform and deregulation and opening of the Japanese economy. At the same time, he says, quite rightly, that all these advanced economies are going to face serious challenges from the aging of our populations. That's true. You've heard all the questions that were just asked of me about our medical programs. And Japan has an even older population than the United States, aging even more rapidly. So the decisions by the Japanese Government to try to pursue a path of fiscal austerity driven in part by the desire to prepare for the retirement and the aging of the Japanese population runs the risk of going back to the old export-driven strategy of growth. And we'll just have to work through those two conflicts. We can't tell the Japanese Government or the Japanese people that they can't prepare for the aging of their population. We have to do the same. On the other hand, I think they know that if we resort--we return to the time when we've got exploding trade deficits, then that will once again move front and center into our relations in a way that won't be good for either country, I don't think. Yes, sir. Russia”