Japan: Bubble prophet fears new disaster


#241

5/12/2018 Harry Dent - Japan Real Estate Crisis


#242

Europe may be entering a “Japanification” phase, where growth and inflation remain sluggish or anaemic for an extended period, a senior Irish analyst has warned in the wake of the European Central Bank’s latest action to reboot the continent’s flagging economy.

“The euro zone is a mess, rates are going nowhere fast and are likely to be stuck close to zero for a long, long time,” said economist Alan McQuaid.

https://www.irishtimes.com/business/economy/ecb-action-raises-fears-of-prolonged-japanese-like-malaise-1.4016077


#243

No shit Mr. McQuaid! :slight_smile:
As I have said for some years, zero bound is a trap. Without wage inflation, there is no inflation.

In a way, Trump is right - protectionism offers a way forward, but that too is a bit of a trap. It can only ever exist since the poorer countries suppress wages to mitigate the existence of barriers, so the barriers are permanent, unless you’re prepared to go through the deflation process. One way through the deflation process is to protect terms and conditions and to ensure equivalent working and environmental conditions (one reason Mercosur is a bad deal).

Ways out? Helicopter money to actual people.
Tax the rich and corporations and redistribute.
Break up the monopolies.

Europe may be entering a “Japanification” phase, where growth and inflation remain sluggish or anaemic for an extended period, a senior Irish analyst has warned in the wake of the European Central Bank’s latest action to reboot the continent’s flagging economy.

“The euro zone is a mess, rates are going nowhere fast and are likely to be stuck close to zero for a long, long time,” said economist Alan McQuaid.

This is not a call to Jeremy-renationalisation (though that would probably benefit for essential industries, it’s not clear they can be well run as local private monopolies), it’s a call to split up monopolists in the new economy.


#244

Flat (zero) growth is probably just what the doctor ordered!
After all, economists, financial institutions, businesses & governments have been pushing the “infinite growth” model beyond breaking point. They’ve pulled every trick in the book, for example
planned & percieved obsolescence, making products that are unrepairable and limiting availibility of parts, importing people to “make growth happen” and other tricks.

It is really time they realised that trees really don’t grow to the sky!


#245

Unfortunately the entire system is predicated on growth and this is why it is so vulnerable to collapse. There’s a brilliant video about how the world doomed itself to being consumed by financialisation when Nixon abandoned the gold standard after spending a third of US gold reserves murdering millions of farmers in Vietnam. Everything is connected to everything else.