The Depressed Japanese Economy

The Japanese Nikkei Stock Average is about one quarter of its value at the end of 1989; it’s still sharply well off that peak.

We know about Hitachi and Nissin Foods corporate growth but the Japanese economy has been flat and practically dormant for over the past twenty years. This has been the case despite huge Japanese government spending, Japanese public debt is now over 200% of GDP.

Unfortunately, it does not appear their economy will recover anytime soon.

The problem for the U.S. is that the Obama administration has been on a wild tear to “stimulate” the American economy, much the same way the Japanese attempted two decades ago, to spend their way to prosperity. Which they have failed to do.

Note: The Japanese do not have a global reserve currency to protect as the U.S. does.