Aso (Japan PM) criticises German response to economic crisis … abdc0.html

What growth? I see no growth.

“vital for recovery”

See? They are all at it. The whole world just wants a return to 2006, and they’ll stamp their little feet and burn whatever is left of the world economy in their foolish infantile and greedy insistance that 2006 was “normal” and we have to “recover” back to it.

In fairness, the stimulus prevented Japan´s economy from crashing into full depression mode in the 90s. It´s a little disingenuous to imply it did nothing.

Realists like Aso know how close we are coming to the ultimate wipe-out, where the unemployed outnumber the workers. It is obstinate fantasists like Merkel who are putting us in shockingly bad danger.

100% agreed.

WE all know what the consequences could be,complete worldwide failure of the banking system leading to a collapse in world trade and the evaporation of wealth as we know it -house prices/cash deposits at banks/equities/pension funds etc.Everyone would be reduced to te same level of poverty.

Since everyone knows how close we are to it,why hasn’t anyone suggested a suitably draconian response to punish the banksters for creating said crisis and thus act as a deterent to future banksters in case they think of repeating the policies that created this nightmare?.I’m not talking Glass Steagal here.


Great. So it’s going to happen now instead. What have they learned from the time gained? Um, don’t build bridges. Few policy options at the zero bound work. And what are they learning now? Eh, if you gear your economy totally towards export, bad things happen if exports collapse. And what will they learn? That when you are hugely indebted your room to manoeuvre is limited?

BTW, the japanese savings rate has gone negative, but japanese consumers aren’t spending any more. Why is that? Incomes down/ Debts from the great bubble still in place? Still in negative equity after twenty years? Gotta love those multi-generational mortgages…

Good post Ym,but what many pinsters may not realise is that the entire Japanese economy is run for the benefit of the exporting companies,the artificially low rate of the yen,the ludicrous zero interest rate policy,the carry trade designed to depress the value of the Yen and provide funding for the exporters.The domestic economy has been entirely neglected and the typical Japanese worker has been literally screwed into the ground over the last twenty or thirty years,with rising prices and static or falling wages,together with zero interest rates on their savings have reduced them to little more than modern day slaves.

The Japanese and Chinese policies regarding their exporters are often compared and sometimes described as being in competition with each other since they are both using the same artificially low exchange rate/interest rate models to outdo each other.

Watching the Chinese response to the unfolding nightmare of the US economy is going to be more than entertaining methinks.

Great, so the japanese solution to avoiding “full depression mode” after a credit bubble is zero interest rates, zombie banks and economic stagnation for neigh on three decades with no end in sight.

I’ll chance the depression option thanks.

The leaders offer a diverse range of options because they represent the voters of their repesentative countries. Most Germans and French are a hell of a lot more left-wing and socialist in terms of their thinking around tax, health systems, executive earnings etc. than those in the UK, US and perhaps Japan. Trying to get a co-ordinated agreement on economy policies is going to be almost impossible. Merkel and Sarkozy represent a very different view of the world to Obama and that gap is going to be difficult to cross.

Very true. The dynamic duo Merkel and Sarkozy are now talking about a worldwide cap on banking salaries. And to think this pair are viewed as *right wing *in their home countries.

Yes exactly, look at the German and French political landscape. You just dont have the likes of the conservatives or the republicans because thats not the viewpoint the voters want.I dont know the historical or pyschological reasons for it but I am sure it has something is do with the terrible devastation both countries suffered in the 20th century.I think a global cap on bankers salaries is a terrible idea. It will just lead to further credit contraction, unemployment and protectionism.

getting back to the japan question here what one of the **serious analysts **had to say to another heavyweight peter schiff on page 6

the whole article is well worth a read

i know there is a schiff/brown thread had to put this here to counter AEPS :angry: nonsense about the rest of the world having to bail out america and the US

Does Angela Merkel not talk common sense ?

More great stuff from Schiff…You never should have lent us all this money. You know we can’t pay it back