To whom....,
I think that actually Japanese fiscal inervention will be of little
use because of the expectation that Japanese will simply save the money.
Japan will have to raise intereset rates significantly to get back on track.
It will really hurt them, but it is a needed dose of reality. Unless Japan
develops a socialist economy right quick, the only other alternative is to
raise the bar on returns on investment.
I need to read more about it (any suggestions?) but I think that
Japan has hidden what is effectively inflation in their system with
artificial pricing. The country should rightly be in significant deflation
given the intense lack of internal demand, it seems. Yet they are only in
very mild deflation, at least officially. I think they have built a big
house of cards over there.
peace
