by mannfm11 » Mon Jun 30, 2014 4:03 am
Only a group of morons would watch what Japan did and repeat it and expect it to work. There is a lot more than meets the eye though. Japan was kept afloat by excess credit in the US, but at the same time, excess US credit built China, which created a new competitor to Japan. Artificial rates for capital merely encourage speculation. Who would lend money against something at a rate that is quite likely lower than the depreciation schedule in return? It wasn't a lack of government intervention that caused the Great Depression. There was plenty of intervention, along with a cycling of export money in a series of bad loans. If the world loses faith in the dollar, the financial position of the US will be laid bare for the world to see. I am sure the people behind the scenes already know this, but realize the dance can only go on, if the US does as Japan did. Japan is taking its last spin around the bowl.
Only a group of morons would watch what Japan did and repeat it and expect it to work. There is a lot more than meets the eye though. Japan was kept afloat by excess credit in the US, but at the same time, excess US credit built China, which created a new competitor to Japan. Artificial rates for capital merely encourage speculation. Who would lend money against something at a rate that is quite likely lower than the depreciation schedule in return? It wasn't a lack of government intervention that caused the Great Depression. There was plenty of intervention, along with a cycling of export money in a series of bad loans. If the world loses faith in the dollar, the financial position of the US will be laid bare for the world to see. I am sure the people behind the scenes already know this, but realize the dance can only go on, if the US does as Japan did. Japan is taking its last spin around the bowl.