> 
> I don't get this. Are you saying that deflation
> in Asia is a result of lack 
> of effective demand in Asia?  Is it not more
> the result of the lack of 
> effective demand in the world as a whole, the
> reason being that 

In Japan it is caused, it seems to me, by a
chronically overvalued yen--against the US dollar
( a de facto world currency for every importing
and exporting nation I know of) and by a wild
overvaluation against Canadian and Australian
dollars (two countries from whence huge amounts
of commodities consumed in Japan come from).
Cheap imports from China, often branded or even
made to spec with Japanese makers' names,
contributes a lot too.

CJ

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