The Poor Japanese Economy

The Japanese Nikkei Stock Average is about one quarter of its value at the end of1989; it’s still sharply off that peak..

Yes we know about Hitachi and Nissin Foods but the Japanese economy has been flat and practically dormant for over the past twenty-odd years. This has been the case despite huge Japanese government spending. Japanese public debt is over 200% of GDP.

The problem for the U.S. is that it 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.

Remember: The Japanese do not have a global reserve currency to protect as the U.S. does, (See the Earl J. Weinreb NewsHole® comments.).