Are you a British Schumpeterian progressive? Outside of my characterization that “ALL BRITISH ARE KEYNESIANS” (for good cheer, I will concede that you have a FEW “rabid Libertarian” exceptions, even if your Libertarians are S*cialists by our standards), you do not seem to be objecting to anything else I wrote!

What mr evans completely ignores is that the Japanese economy is an export oriented economy and ( evans got it correct this part) it is a highly leveraged economy. Now any analyst will tell you that if the world (specifically BRICS) recovers and starts importing technology, the economy that is the most leveraged will bounce the fastest and its currency will appreciate like a rocket. That is why you have seen the YEN smash all records as it hit 88 a few weeks back and now is destined to go below 85.

And just another small matter: The Japanese engineers are far superior when it comes to technology and the new world we enter is going to be a technology super house. Now unfortunately US is consumer import economy and when such an economy takes on debt levels (100% of GDP) there is no recourse but a complete shutdown of the system and systemic crash. You are already seeing the makings of a massive crisis developing on the horizon with 109 bank failures and with another 2000 banks set to fail (GS report), now let me ask if Mr Evans can spot even 5 bank failures in Japan ?

Journalists need to be a little more circumspect before they publish stuff like “You need to worried of Japan….” It is almost the voice of biased and partisan Mr. Buffet who has been fooling not just americans but investors around the world “Am american. Buy American” even if it means you lose your shirt in teh process.

:)

Fresbee
GA Alpha Fund

I take it the Fed now has magical powers to accomplish this goal?

Regards,
TDL

you must be joking. Where the hell did that come from? It’s not true. We have as many rabid libertarians to contend with as you yanks do.

In any case the japanese are not only keynsians, they are full on chartalists, who are simply keynsians on steroids and with access to a printing press.

I am all in favor of managing public-sector spending and debt everywhere, not only in America. But this liar’s true agenda is the continued manipulation of currencies to preserve the global status quo of trade imbalances. He wants to preserve his investments and those of his Tory friends in the City, not through genuine, sustainable economic drivers and prudent rebalancing of the world economy — more innovation and production coupled with less consumption in the West and steadily greater consumption in the East — but instead through maintaining the Keynesian monetary shell-game of central bankers everywhere. The man ironically and cynically bashes Keynes, then betrays his true allegiance to Keynes by promoting “ultra-easy monetary policy”. My fellow Americans, do not forget: ALL BRITISH ARE KEYNESIANS.

All Japan is doing is taking some gradual action to reckon with the reality that the Japanese are not as rich as they once thought they were, without descending into the chaos of deflation. We must do the same, without descending into the chaos of deflation (in things like housing) AND inflation (in things like food). Do not pay attention anymore to the British seeds of your own destruction.

Up Against a Wall of Debt

How much can governments borrow?

“The same logic applies to exploding government debt. We have moved into uncharted territory and are prisoners of psychology. Consider Japan. In 2009, its budget deficit—the gap between spending and taxes—amounts to about 10 percent or more of gross domestic product (GDP). Its total government debt—the borrowing to cover all past deficits—is approaching 200 percent of GDP. That’s twice the size of the economy. The mountainous debt reflects years of slow economic growth, many “stimulus” plans, an aging society, and the impact of the global recession. By 2019, the debt-to-GDP ratio could hit 300 percent, says a report from JPMorgan Chase.”