To: Southack
So all of these people are mindlessly saying exactly the same thing...saying something that fails to explain the U.S. in 1945...saying something that fails to explain Japan today, last year, last decade, and last 20 years.
One big overriding but all important difference between Japan in the 80s, the US in 1945 and the US Now. EXPORTS. Both Japan and the post war US had massive trade surpluses. These helped to finance the spending spree and draw off excess production. Hence keeping inflation in check. The US today has some of the largest trade deficits in the world. The effect is just the opposite. Even mild inflation will make it harder to get oil, which will drive up prices, causing more inflation and onward into a spiral.
193 posted on
05/18/2009 11:25:52 AM PDT by
GonzoGOP
(There are millions of paranoid people in the world and they are all out to get me.)
To: GonzoGOP
"One big overriding but all important difference between Japan in the 80s, the US in 1945 and the US Now. EXPORTS." No. Japan has been printing money from 1989 to today, and will be doing so tomorrow, too. But Japan has a current account *deficit* this year. Just like the U.S.
Japan is importing more than it exports this year, yet Japan has 12% deflation this year.
So one errs when one says that Japan and the U.S. pursuing the same policies will somehow magically get different results (e.g. deflation in one, inflation in the other) based upon trade balances.
196 posted on
05/18/2009 12:14:30 PM PDT by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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