Is US entering Japan's nightmare?

[caster51]

But, you don't want to sell your home and assets to pay for debts, as you end up getting loans from someone.

If the debt gives birth to a further property, it is likely not to repay it.
no one tell to pay for debts. Because it doesn't borrow from the foreign country
Money can be borrowed at least to the financial asset of Japanese ppl's $18Trillion.
An increase in the debt of the United States is limited to an increase in the rating to another country.
that is , increasing of net worth(total assets) in a year .

as you end up getting loans from someone. Property values in Japan are not set in stone and can go down (as it is likely they will go down).

If If the interest of the United States debt increases to Japan , it is welcome.
I pray that the Obama not make the debt a wastepaper.

it is chance to buy US or world Properties now..

There was a news article somewhere which reported Japan's public and private debts are bigger than its assets.

Japan has bond of $0.7 tlilion US national debt
Japan has $6 tlilion bonds of Foreign countries in2006

If the debt of the country of japan becomes $17 trillion, the people in
Japan monopolize money in the world.
Inside and outside net worth of Japan will become threats in the world.

the truth is.......
As for the child in Japan, it can be a property person of 6.48 million yen
(creditor) at the same time as giving birth

 

[JerseyBoy]

If the debt of the country of japan becomes $17 trillion, the people in
Japan monopolize money in the world.
Inside and outside net worth of Japan will become threats in the world.
the truth is.......

As money can be created (or printed) by countries that issue it, that situation will not materialize. Also, it is highly unlikely Japan can borrow $17 trillion from overseas.

As for the child in Japan, it can be a property person of 6.48 million yen
(creditor) at the same time as giving birth

Each Japanese is different in terms of his wealth (or future earning opportunity). That figure does not say anything in a meaningful sense.

We will find out eventually where Japan would be in 10, 20, or 30 years from now. In the 80s, there was some irrational hysteria that Japan was going to keep purchasing foreign assets. That was just a false fear by other countries, as Japan has been in the economic doldrums for almost 2 decades now and is likely to stay that way.

Most of the market prediction and forecasting include a good dose of human sentiments (sometimes fear, sometimes exuberance, and others).

 

[caster51]

As money can be created (or printed) by countries that issue it, that situation will not materialize. Also, it is highly unlikely Japan can borrow $17 trillion from overseas

of couse
Plummeting of government bond prices are prevented by buying the government bond of national Japan.
because It is a defense plan of Japan without military forces.

We will find out eventually where Japan would be in 10, 20, or 30 years from now. In the 80s, there was some irrational hysteria that Japan was going to keep purchasing foreign assets. That was just a false fear by other countries, as Japan has been in the economic doldrums for almost 2 decades now and is likely to stay that way

.

It makes a profit if yen becomes cheap, right?

 

[caster51]

There is no meaning to which American economy is forecast by economic
fundamentals anymore.

The United States is already dead under US fundamental economy.
The death is fixed though the life grows up, and declines. The forecast is
useless to the one that doesn't move

What does the fixed United States do?
Scrap and build!
It means......

 

[Pachipro]

There is no meaning to which American economy is forecast by economic fundamentals anymore.

The United States is already dead under US fundamental economy.
The death is fixed though the life grows up, and declines. The forecast is
useless to the one that doesn't move

The US is dead in the water and will suffer a slow death until the people beg President Obaama for a solution to their ills and the solution will be a One World Bank leading, eventually to a One World Government in the long run.

All this so-called "money" and debt is nothing but fiat currency with nothing to back it up, not even gold or silver. Therefore, the value of the currency is anything the governments say it is and IS ONLY FOR PAYMENT OF DEBT, nothing more.

If suddenly tomorrow world governments decided, as a whole, that their new currency would be a certain flowered toilet paper printed only by the treasuries of the countries involved and that it would only be worth such and such and that your old paper currency is now worth half of what it was yesterday, there is nothing you nor I can do about it.

With all the debts of the major countries going on today and the planned "financial crisis", what can't be paid won't be paid; as simple as that if they decide it to be so. And it may just come to that with the implemintation of, gasp, a one world bank and a Bull Sh*t carbon tax in the guise of preventing global warming to pay for the one world bank and the gullible sheeple, who all believe in global warming, will gladly put their heads on the chopping block and pay it with no questions asked. It's coming and President Obama will be on the bandwagon playing lead trombone as the Pied Piper leading the world into One World Government with a One World Bank being the start and a reduction of salaries of executives at major banks and brokerages receiving so-called bailout, or TARP (Troubled Relief Assistance Program) money. It will come and that will be the start in the guise of "reviving the US economy".

In the long run (maybe short run with the way things are going) the only "real money", as it has been for thousands of years is gold and silver in your posession.

 

[JerseyBoy]

of couse
Plummeting of government bond prices are prevented by buying the government bond of national Japan.
because It is a defense plan of Japan without military forces.

Let's speak English here. Your comments do not make any sense.

 

[JerseyBoy]

The US is dead in the water and will suffer a slow death until the people beg President Obaama for a solution to their ills and the solution will be a One World Bank leading, eventually to a One World Government in the long run.

If the USA goes under, it would bring down the rest of the major trading partners along with it. As there are so many gloomy economic news on Japan, Japan would be pushed into much severe economic recession.

About fifty percent of Japan's manufacturing business is for export markets. (Japan's service industry is mostly for the domestic consumption and low paying jobs) So, Japan would keep receiving the direct hit from US and other countries' economic woes.

The paths taken by Japan and US are very different. At least, US can use Japan's wasteful ineffective public works programs (trillions of dollars over the course of 2 decades after the bubble popped) as a basket case to avoid as it irons out its own stimulus plan.

Regarding a One World, I think there are still many countries which value their own sovereignty. Even EU member countries have not achieved the political integration as each state does not want to give us its sovereignty too much. Many industrialized countries may lose their clout if a One World is created and is represented democratically by its member states (China would get a big chunk of voting block due to its population size).

 

[Air America]

more than you can chew[/B]". There are more than enough US dollar currency in the global market. And Thus, the value continues to drop. I suggest Americans to follow Japanese life style:
1. Develop public transportation system like Shinkansen instead of automobile only.
2. Seek cheaper grain-based dietary life instead of big portion of beef.
3. Sleep in a smaller bed or Tatami instead of King size bed, and then you don't need big sized house.
4. Abandon American Express credit card, but instead cash only. Then you can become more cost-conscious.

A farmers customers cannot starve nor put their farmer on diet, without going on a much bigger one themselves.
The US is Japans farm and farmers. It would be MOST unfortunate for Japan, if the US could not afford to produce and export Japan the goods it's people and infastructer need to survive and carry on it's way of life
.

 

[JerseyBoy]

A farmers customers cannot starve nor put their farmer on diet, without going on a much bigger one themselves.
The US is Japans farm and farmers. It would be MOST unfortunate for Japan, if the US could not afford to produce and export Japan the goods it's people and infastructer need to survive and carry on it's way of life

US's agricultural industry will still keep selling their goods to Japan and other overseas markets. Farmers are also in business to make money by selling their crops to higher bidders.

The current economic malaise is a manifestation that the reality of the true financial health came to light after decades of illusory wealth fueled by debts and credits.

 

[Pachipro]

The paths taken by Japan and US are very different. At least, US can use Japan's wasteful ineffective public works programs (trillions of dollars over the course of 2 decades after the bubble popped) as a basket case to avoid as it irons out its own stimulus plan.

I don't know about that JB. At least the public works projects in Japan provided jobs to many Japanese and kept the economy afloat and running in step while refurbishing infrastructure and building things like high rise buildings and "mansions" and such. While Japan's economy did not expand much, it did not retract that much either until recently.

There may have been minor deflation, but overall, prices remained steady for nearly 20 years and inflation was kept at a minimum as I witnessed during my many trips "back home" over the years. As an example, during a visit last year, I was shocked to discover that I could rent the same apartment I did back in 1977 for 8,000 yen more today than I paid 32 years ago and a beer at a bar is basically still 600 yen for a "chu-bin" as it was back then! There are many other examples, but I guess you get where I'm coming from.

In contrast, the US "stimulus" package covers almost nothing in the way of public works projects and gives a paltry few billion to infrastructure. This is just throwing money down a rat hole and giving "pork" and "earmarks" to democratic congressmen and senators and there will be calls for a "second stimulus package" in about a year. America will not survive this as Japan did as hardly anything is being spent on providing jobs. America will declare bankruptcy, but not before all the taxpayers cash has been funneled offshore first.

It amazes me that the US business channels and publications refer to Japan's "Lost Decade" (to me it has been two decades) and say that we want to avoid that. But to me Japan survived it well and it should be a model for the US and other countries to follow as Japan's economy did not fall apart during that time while the US's will due to bad management and flawed economical thinking.

 

[ArmandV]

Spending your way to prosperity has never worked and never will.

 

[JerseyBoy]

I don't know about that JB. At least the public works projects in Japan provided jobs to many Japanese and kept the economy afloat and running in step while refurbishing infrastructure and building things like high rise buildings and "mansions" and such. While Japan's economy did not expand much, it did not retract that much either until recently.

Japanese government spent well over USD 1 trillion for the public works over the course of the lost decade (with such as drip-drip spending over the course of years, it is reasonable to expect the economy will keep an economy afloat). There was an interesting NYT article on that one that showed a stark example of wasteful public spending for the sake of spending, like a bridge to nowhere (literary to nowhere as no one is using some of the expensive bridges Japan built).

The high risers (including "mansion" building) are typically financed by the private sector (with some tax incentives by the gov).

The fact of the matter is the USA is still considered the safe haven for many investors. Even though the current economic recession originated from the USA and spread to Europe and Asia, the blunt of the hatchet would fall heavily on Europe and Asia. (note: Most of the major international trade partners have got affected by this downturn. So, my comment is relative to other countries).

The current exchange rates between the Dollar and the Yen illustrates clearly. I think the Dollar will go above JPY 100 in several weeks.

The major long terms ills for Japan would be:
stagnant domestic consumption
highly regulated domestic industries (too many red tapes)
rapidly aging population
50% of manufacturing industries depend on exports (overseas recessions will bring down Japan's economy
lack of raw materials (hard currencies from the trade should offset this but Japan cannot escape the fact that it depends on imports for essential materials; Japan may not be able to maintain the trade surplus any longer).

I expect that the USA and China will emerge as the twin pillar of the world economy and that Japanese economy will in the downward trajectory hereafter.

 

[caster51]

I expect that the USA and China will emerge as the twin pillar of the world economy and that Japanese economy will in the downward trajectory hereafter

America is already dead.
don't expect much.
japan and China's trading already exceeded USA

 

[Pachipro]

Japanese government spend well over USD 1 trillion for the public works over the course of the lost decade (with such as drip-drip spending over the course of years, it is reasonable to expect the economy will keep an economy afloat). There was an interesting NYT article on that one that showed a stark example of wasteful public spending for the sake of spending, like a bridge to nowhere (literary to nowhere as no one is using some of the expensive bridges Japan built).

Yes, that is alot of money, but I think it was well worth it for the reasons I stated. I wonder how the $1 Trillion stimulus package in the US will be used for public works projects to keep people working. From what I've read it's only about $40 billion. A pittance considering how bad our infrastructure has become. MOst of it will go for pet projects of bureaucrats and their own home towns/cities. Here in the US we have a few "bridges to nowhere also."

The fact of the matter is the USA is still considered the safe haven for many investors. Even though the current economic recession originated from the USA and spread to Europe and Asia, the blunt of the hatchet would fall heavily on Europe and Asia. (note: Most of the major international trade partners have got affected by this downturn. So, my comment is relative to other countries).

It may be a false belief based on what the media is telling us and the "arm twisting" by the US of foreign nations to continue buying US treasuries. But let's face facts here. The US is broke, broke, broke, and is $14 Trillion in debt. How in the world will they ever be able to pay back that money, especially to China and Japan? They can never pay it back and will probably declare itself bankrupt in the short term (1 - 3 years). In the coming months foreigners will shy away from US investment and may even begin to sell their T-Bills if, and when, the US$ begins it's decline as it eventually will as there is no other course save for manipulation. But even that cannot last forever.

Where is the money coming from for the stimulus package? China and JApan, that's where. And if that's not enough the US will just print more with no gold or anything to back it up. Soon hyperinflation will take hold as there will be too many dollars chasing too few goods.

I believe Japan will come out on or near the top when the dust finally settles as it is still the largest creditor nation in the world while the US is the largest debtor nation and most households have negative net worth while the majority of households in Japan have a positiuve net worth.

The current exchange rates between the Dollar and the Yen illustrates clearly. I think the Dollar will go above JPY 100 in several weeks.

It may well be, but that is just manipulation to satisfy Japan and increase the value of their exports. In the long run (1 yr or so) the Japanese yen I believe will be below 80 yen/$.

The major long terms ills for Japan would be:
stagnant domestic consumption
highly regulated domestic industries (too many red tapes)
rapidly aging population
50% of manufacturing industries depend on exports (overseas recessions will bring down Japan's economy
lack of raw materials (hard currencies from the trade should offset this but Japan cannot escape the fact that it depends on imports for essential materials; Japan may not be able to maintain the trade surplus any longer).

I agree, but the same is true of the US. Besides our manufacturing capabilities are virtually nil today save for big ticket items, but even these are being outsourced overseas. As the Japanese yen stregthens raw materials will be that much cheaper for them.

I expect that the USA and China will emerge as the twin pillar of the world economy and that Japanese economy will in the downward trajectory hereafter.

I respectfully disagree as I believe the US will go the way Spain, France and the UK did in the past. At one time these countries were also the most powerful economies and militaries in the world and where are they today? They are nowhere near their former powerful selves. I believe the US is headed down the same road and the pillars of the world economy will be China, Japan (due to their creditor status) and maybe most of Asia including India. In about 10 years the US may be making goods for export to the strong economies of China, Japan, and India.

For all my research to date, I cannot see the US coming out of this at all outside of a war. For them to do so would mean a massive rebuilding of factories for the manufacture of all the goods we now import for export. At present salaries and red tape it is physcally impossible to compete. Besides we do not have the factories available anymore. In order to compete, the US would have to have wages at or below those of China, India, and many other countries. I do not see that happening anytime soon and thus the US cannot compete.

We no longer make any electronics, nor clothing, nor any textiles. We have very limited steel building and every stick of furniture, clothing, electronics, household items like dishes and cutlery, toothpicks, chopsticks, mousepad, carpets, lamps, vases, coffee pot, football jerseys, hats, etc., etc in my home today were made in China or another foreign country. I believe I have a personalized coffee cup that was made in the US. Even my own US flag was manufactured in China!

How in God's name are we to compete and come out on top when we do not manufacture anything anymore?

God I hope I am wrong.

 

[JerseyBoy]

I respectfully disagree as I believe the US will go the way Spain, France and the UK did in the past. At one time these countries were also the most powerful economies and militaries in the world and where are they today? They are nowhere near their former powerful selves. I believe the US is headed down the same road and the pillars of the world economy will be China, Japan (due to their creditor status) and maybe most of Asia including India. In about 10 years the US may be making goods for export to the strong economies of China, Japan, and India.

I agree you do have good points there. I should have included in my previous comment a conditional that the USA-China dynamic will crumble as soon as China stops buying or starts dumping the US Treasuries. As of now, China has an incentive to keep the status quo as the risk of uncertainty in terra incognita is too strong for China's psyche.
If China does those in the future, then, all bets are off as it would be next to impossible to predict how things play out. The USA and other debtor nations simply could decide to default on their debts and the creditor nations could be forced to forgive those debts.

 

[Dogen Z]

New Zombie Companies

During Japan's "lost decade", the country was harshly criticized for supporting zombie companies--companies that were effectively bankrupt but still operating because of external financial support. Now, we see the U.S. in this position with the government unwilling to let GM, AIG, or Citibank fail.
Far be it for me to say whether or not these companies should be left on their own because it would bring about even more misery very suddenly. However, I think it should be a lesson for Japan not to take "gaiatsu"-- outside criticism--very seriously.

BTW, I think the U.S. recovery will be as weak as Japan's was. If not, there should be very high inflation due to all of the fiscal spending that are going on right now. Still, I hope the U.S. recovers well with fundamental changes to capitalism--something more egalitarian like Japanese capitalism (for example, CEOs shouldn't get more than 10X the wages of the lowest salaried worker) and not dependent on greed and envy as the main motivators of growth. The implicit assumption that everyone can get wealthy if he/she just works hard enough is also wrong. Resources are not infinite, there are natural bottlenecks to growth. And if you could spread the current total worldwide wealth evenly throughout the world, would the standard of living even reach current U.S. middle class level? I wonder.

Tokorode, I'm very impressed by the way the Chinese government is handling the downturn. Their stimulus program is already beginning to show results with rises in many leading economic indicators, and there is talk of further stimulus. The Hang Seng index rose accordingly. The government also announced that it would invest some of it's foreign reserves in oil--much more valuable and useful than gold or U.S. treasuries. The Chinese are very, very sharp business people. Japan could learn from them.

 

[hsakakibara1]

The situation is exactly the same as I was in Japan when it occurred and I left because of the high housing prices. The only difference is that Japan was able to survive because it is a creditor nation and the Japanese people are savers. America, on the other hand is a debtor nation who has exported their inflation these many years by "forcing" other countries to buy up their T-Bills, and the nation, as a whole has a negative saving rate and is severely in debt to the tyune of $9 trillion dollars! ($9,000,000,000,000) That amount can never be repaid.
The "designed" housing bubble has collapsed and the next shoe to drop will be the credit card and debt bubble which I do not believe the nation can survive.
If one looks back, the Japanese stock market was hovering around 44,000 and homes were out of reach of the average Japanese. Today, almost 20 years later, housing prices still have not even come close to their 1989 peak and the market has also never fully recovered and is still less than half of what it was 20 years ago. I fear the same will hold true for the US only it will be much, much worse as 85% of our manufacturing has been off-shored and the US depends on foreign nations for their very survival. Watch the dollar as it will continue to nose dive and the stock market will fall below 10,000 and even lower.
True, but there will be no "financial manuvering" as it is a designed crash and fall from grace. The economy will not be put on track for many years to come.

I agree totally. The US will see a rebound for the next 2-3 years due to President Obama's injection of 1.3 TRILLION USD. However, he can't keep printing that sort of amount forever. I think that in 3-5 years' time the US will be in really deep **** (sorry but no better way to put it). There is little real manufacturing base left here. Most people only think about themselves, etc. All the points made in this forum are true.

I currently am living in the US but plan to relocate back to Japan in the next 1-1 1/2 years. I am already beginning the process of transferring my money back to Japan and into yen.

Most of my friends have already gone back to Japan and elswehere in Asia/Europe despite the fact that many are US citizens or hold PR visas as they do not see any bright future here. Not only that, but I know of many American-born people (Westerners) who are suddenly "rediscovering" their roots, be it Irish, etc., and are working to get dual citizenship based on family lineage with a mind toward a possible move should things get worse.

If you are planning to move to the US, my advice is DON'T. If you are already here, consider a move to another country.

 

[hsakakibara1]

Yes, that is alot of money, but I think it was well worth it for the reasons I stated. I wonder how the $1 Trillion stimulus package in the US will be used for public works projects to keep people working. From what I've read it's only about $40 billion. A pittance considering how bad our infrastructure has become. MOst of it will go for pet projects of bureaucrats and their own home towns/cities. Here in the US we have a few "bridges to nowhere also."


It may be a false belief based on what the media is telling us and the "arm twisting" by the US of foreign nations to continue buying US treasuries. But let's face facts here. The US is broke, broke, broke, and is $14 Trillion in debt. How in the world will they ever be able to pay back that money, especially to China and Japan? They can never pay it back and will probably declare itself bankrupt in the short term (1 - 3 years). In the coming months foreigners will shy away from US investment and may even begin to sell their T-Bills if, and when, the US$ begins it's decline as it eventually will as there is no other course save for manipulation. But even that cannot last forever.

Where is the money coming from for the stimulus package? China and JApan, that's where. And if that's not enough the US will just print more with no gold or anything to back it up. Soon hyperinflation will take hold as there will be too many dollars chasing too few goods.

I believe Japan will come out on or near the top when the dust finally settles as it is still the largest creditor nation in the world while the US is the largest debtor nation and most households have negative net worth while the majority of households in Japan have a positiuve net worth.


It may well be, but that is just manipulation to satisfy Japan and increase the value of their exports. In the long run (1 yr or so) the Japanese yen I believe will be below 80 yen/$.


I agree, but the same is true of the US. Besides our manufacturing capabilities are virtually nil today save for big ticket items, but even these are being outsourced overseas. As the Japanese yen stregthens raw materials will be that much cheaper for them.


I respectfully disagree as I believe the US will go the way Spain, France and the UK did in the past. At one time these countries were also the most powerful economies and militaries in the world and where are they today? They are nowhere near their former powerful selves. I believe the US is headed down the same road and the pillars of the world economy will be China, Japan (due to their creditor status) and maybe most of Asia including India. In about 10 years the US may be making goods for export to the strong economies of China, Japan, and India.

For all my research to date, I cannot see the US coming out of this at all outside of a war. For them to do so would mean a massive rebuilding of factories for the manufacture of all the goods we now import for export. At present salaries and red tape it is physcally impossible to compete. Besides we do not have the factories available anymore. In order to compete, the US would have to have wages at or below those of China, India, and many other countries. I do not see that happening anytime soon and thus the US cannot compete.

We no longer make any electronics, nor clothing, nor any textiles. We have very limited steel building and every stick of furniture, clothing, electronics, household items like dishes and cutlery, toothpicks, chopsticks, mousepad, carpets, lamps, vases, coffee pot, football jerseys, hats, etc., etc in my home today were made in China or another foreign country. I believe I have a personalized coffee cup that was made in the US. Even my own US flag was manufactured in China!

How in God's name are we to compete and come out on top when we do not manufacture anything anymore?

God I hope I am wrong.

But you are right. I agree. It may be time for you to get out the old atlas (or log on to Google Earth) and find another place to live. If you wait too long many doors that may be open will close. Also look into retirement visas abroad. Tragic as it may sound, you may not be able to afford to retire here even if social security gives you the full payout. Consider this NOW and not LATER when it may be too late.

 

[mobile1]

Bank of America crashed hard today, and I think Gold is going to bounce back up. By the way, I am amazed at this flight to safety factor where people buy up more US dollars the worse the economy gets. Investors are like a battered wife in a dysfunctional relationship in that they buy more dollars when the economy worsens. They want to take more punishment rather than dump the dollar and leave the relationship alltogether.

 

[Air America]

America will not recover as Japan did.

Japan protects it's peoples jobs. They did not build overseas factories and employ foriegners, until they made sure their own were employed and taken care of first.

The USA should have NEVER exported a single job, or allowed any foreign labor to come in, until the demand for their products exceeded their workers ability to produce.

You don't export or out-source a single job, when you have millions of your own citizens unemployed or underemployed, and losing everything they own. (Not to mention exporting jobs that provide a huge income tax income, to workers who do not pay US income taxes...then whining about budget short-falls!?)

But what is now happening, is the US citizens and government are propping up their banks, and those banks are now foreclosing on them. Then after they foreclose, they are selling the foreclosed US property to the foriegn workers who now have the american citizens jobs.

Next the US will be selling it's mineral rights away to foreign nations too.

Personally, I think the US government has either lost it's mind, or is purposely carving up and selling the US to foreign nationals.

It's kinda hard to figure out idiots, and when you do? You have accomplished and learned nothing of value.

 

[JerseyBoy]

America will not recover as Japan did.
Japan protects it's peoples jobs. They did not build overseas factories and employ foriegners, until they made sure their own were employed and taken care of first.

I am not too sure of that. First of all, Japan has not even recovered from its so called "lost decade." It just kept limping on and finally fell down on its face again once its export markets collapsed.

One third of the Japanese labor force is non traditional workers (ie. contract workers, temp workers, part timers, and etc). So, there are many Japanese who are living on a meager pay. The unemployment benefit only kicks in after one year of full time work. So, part timers, contract workers, and others who are not full timers are out of luck.

 

[caster51]

I am not too sure of that. First of all, Japan has not even recovered from its so called "lost decade." It just kept limping on and finally fell down on its face again once its export markets collapsed.
One third of the Japanese labor force is non traditional workers (ie. contract workers, temp workers, part timers, and etc). So, there are many Japanese who are living on a meager pay. The unemployment benefit only kicks in after one year of full time work. So, part timers, contract workers, and others who are not full timers are out of luck.

in 1988, non traditional woker 20%
today, 30%
it is incresed 13%

However ,Traditional woker is not decreasing so much...
part timer and contract workers are increasing.
so it means house wives go to work as part timer or contract workers...

 

[JerseyBoy]

in 1988, non traditional woker 20%
today, 30%
it is incresed 13%

However ,Traditional woker is not decreasing so much...
part timer and contract workers are increasing.
so it means house wives go to work as part timer or contract workers...

This trend will be on the roll. There is a distinctive change in the labor market in Japan and many of "regular" J-folks would be squeezed as years go by.

 

[Astroboy]

Deflation Theory Is Lemon
Aug. 18 (Bloomberg) -- For much of the last year, central bankers, industrial leaders and politicians have been warning us about deflation. Falling prices, they tell us, will create another 1930s-style depression. The only answer is to print money furiously.

Now it turns out the theory is a lemon.
Deflation is no threat at all.
Bloomberg - Are you a robot?

As previously said, the world economy, especially advanced nations, is following Japan's path. And thus, economists changed their thoughts - "Deflation is no threat at all."

July 2009 CPI Stats say:
- Euro area: Down by 0.7%
- USA: Down by 2.1%
- and even China ... Down by 1.8%

IF you have a big mortgage, Deflation is very painful, BUT if NOT, your life is easy.
Cash is King in Deflationary economy. The world must prepare the life as Japanese life.

 

[Astroboy]

The White House's Office of Management and Budget this morning projected a staggering $9 trillion dollar deficit from 2010-2019, far higher than it has previously forecast.
The CBO painted a slightly more optimistic picture in its own summer update on the budget and the economy, projecting a $7.14 trillion 10-year budget deficit.
Budget Blues: White House and CBO Release Summer Outlooks

Because of Balance Sheet recession, government spending is only a hope for economy, and thus USA is following Japan's path. But point is .... Unlike Japan's ..... J-bonds,

WHO can continue to purchse US T-bonds ?
IF it's not sold well, then interest rate will jump up.
I am very interested in Obama and Bernanke's plan.