Interesting times now in Japan.

Japan's new Prime Minister Yukio Hatoyama has announced a big break with the past. He says Japan would aim to cut emissions of greenhouse gases by 25% from 1990 levels by 2020. This is enormous news. The world's second largest economy is finally moving to cut greenhouse gas emissions.

The big question, however, is how long this guy is going to last. The Times reports that analysts are warning the Democratic Party of Japan's (DPJ)'s stimulus measure will fall short of reviving the economy and might even exacerbate Japan's record unemployment rate of 5.7%.

Furthermore, economists have told Bloomberg that high spending and new tax policies will create a breakdown of Japan's public sector finances. If that's right, the Japanese economy will go from bloody awful to cataclysmic in just a few months. And that will only slow down the prospect of recovery.

The question is whether the US and Europe will let that happen.

On the other hand, Hatoyama's announcement about emissions signals that Japan is in good hands. As to its economy, the performance of the previous government suggests there is no quick fix to Japan's woes.