title:America Has Never Been Closer To Turning Japanese (Similarities never been more apparent.)

Business Insider ^ | 08/14/2011 | Gus Lubin

[SeekAndFind]

Everyone is talking about a WSJ article, This Time, Maybe The U.S. Is Japan, in which reporters Matt Phillips and Justin Lahart conclude from talking to traders and investors that the similarities have never been more apparent.

The comparison got stronger this week after America's credit rating was downgraded by S&P and Bernanke pledged two more years of zero interest rates.

Japan was first downgraded from triple-A in 1998 and has had near-zero rates for the better part of a decade. Both factors have kept the government from reversing a decline in the Nikkei from 1989 through today.

One former Fed economist is starting to believe:

As an economist at the New York Federal Reserve, Kenneth Kuttner wrote a paper explaining why, in the aftermath of the dot-com bust, the U.S. was decidedly not like Japan. The stock market decline paled in comparison to the bursting of Japan's real estate bubble, the financial system was strong and the U.S. government had the fiscal leeway to boost spending if the economy weakened. "It was very easy to be smug at that point," says Mr. Kuttner, now a professor at Williams College. "Now, I'm running out of reasons to say the U.S. is all that different."

[MNJohnnie]

Meanwhile all the “smart guys” in the US Media are busy urging the US follow the same failed Japanese model of Government stimulus spending without end.

[Chi-townChief]

We’ve been turning Japanese for the past 50 or so years >>> http://retrothing.typepad.com/.a/6a00d83452989a69e2011570182e01970b-800wi

[P.O.E.]

Now I’ve got that song going through my head. “I really think so...”

[SeekAndFind]

[tsowellfan]

Scary part is the title: America Has Never Been Closer To Turning Japanese raised my spirits.

I thought Obama took us below that already.

[Rebelbase]

3/4 of our society hasn’t 1/10th the discipline of the typical Japanese.

[Yaelle]

“I’m turning Japanese I think I’m turning Japanese I really think so....”

[A_Former_Democrat]

“I really think so” too.

Now if I can just find “My Woman From Tokyo” and take her out for “Sukiyaki”

[Huck]

Just watch out for “Godzilla.” You might be better off with a “Slow Boat to China.”

[TheOldLady]

Click the Camera!

Just As Long As It's GREEN Cheese!

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[emax]

I suppose that means the US and the Japanese could become Chinese colonies together ? The Chinese govt would still love to enact vengeance on Americans and good Lord to the Chinese people still have bones to pick with the Japanese.

[freedomrings69]

at the time we were very critical of Japan for the path they were following. Now we are doing the same thing.

[Squidster]

This economist has been saying that for years:

http://confoundedinterest.wordpress.com

[Durus]

Or 1/10th of the authoritarian facism.

[Ted Grant]

Turning Japanese? Turning Japanese? I really think so.

[A_Former_Democrat]

Or that guy “Rodan”

[gusopol3]

Which, to me , is further evidence that once your demographic slips below replacement, you’re not going to maintain an expanding economy, no matter how much you jiggle the rates. Old folks don’t create the demand that young ones do.

[the invisib1e hand]

things are rarely that pat and uniform in economic matters.

however, I do recall posting something about "Turning Japanese (I really think so)" some time ago. Or, at least thinking about doing it. That counts, no?

[TigerLikesRooster]

I remember saying this on FR right after first stimulus package was out near the end of Bush term. There were irate replies to my comment. The same people who have been taunting and ridiculing Japanese over their handling of post-bubble economy were definitely not amused to be accused of the same. However, for the last few years, they have been doing pretty much what Japanese had done, while pretending otherwise. Now it is increasing difficult to keep up the charade.