Japan Surrenders After Nuclear Financialgeddon

JapanSurrenders

BOJ to pump $1.4 trillion into economy in unprecedented stimulus

The U.S. Federal Reserve may buy more debt under its quantitative easing, but with the Japanese economy about one-third of the size of the United States, the scope of Kuroda’s “Quantitative and Qualitative Monetary Easing” is unmatched.

“This is an unprecedented degree of monetary easing,” a smiling Kuroda told a news conference after his first policy meeting at the helm of the central bank.

Boldfaced emphasis added by me.

In the 1970s and 1980s, there were plenty of people sounding the alarm in America about how Japan was going to rule the world.

Japan has been an economic vegetable for about twenty years now. The “Lost Decade” has turned into the “Lost Generation.”

There were several things the alarmists did not consider and actually could not foresee:

1) The fruition of Nixon’s 1972 trip to China

2) The rise of hypercapitalism when Reagan became President

3) The structural flaws within Japan itself

2) Negative population growth in Japan

5) The game we were supposed to lose was totally changed

The game was making things.

Making things is still important — if only from a national security point of view — but with hypercapitalism driving the exporting of “American” manufacturing to China, Japan’s supremacy was usurped. Japan had to abandon its own manufacturing supremacy to compete in this new game or be priced out of the markets it had dominated.

And then there were black swans: such as the iPod to unseat Sony’s Walkman, the Internet, the rise of software, Google’s Android, Samsung to unseat them all.

On the present monetary course all nations are taking, none of this is going to end well for anybody. We will all end up worse than Cyprus.

But those in power seem to believe they can keep this game of musical chairs going infinitely.

What they all overlook is that money has to actually go into actions that provide value. Money just can’t be dumped into fixed assets of limited supply in a rigged market where prices don’t reflect reality (see: real estate, which is what helped implode Japan).

Putting money into actions means getting it into the hands of people. Because it’s only people who create value.

And so far money is not getting to them at all.

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