The Japanese economy has been in the tank not because of global free trade, but because their banks were in bed with their manufacturers, and their real-estate tycoons. They severely overestimated (on paper) the value of their real estate holdings, to prevent their friends from being embarrassed. When the eal estate market collapsed, so did a large part of their banks paper holdings. That led to the collapse of their economy.
You need to re-read your history a bit more before you go off on such an ill-informed rant.
True -- Japan collapsed because the monetarists created a bubble economy with too much cheap money and easy credit. All bubbles burst and take the economy with them. We are going through the very same thing here.
Richard W.
Actually I have been studying this for the last three years, and that is my take on it. The text book rules of economics are altered in practice and outcome, by the political and business coruption that you describe.
That may have been the PROXIMATE cause--but the real cause is the 'birth dearth' in Japan. No kids, no reason to spend money---and with retirement coming, only saving money is prudent. Thus, no growth in the economy.
Proof? Look at the significant benny offered for children in the GWB tax program. GWB gets it!!