[ExI] M0 singularity... you're soaking in it

[Stathis Papaioannou]

2009/2/3 BillK <pharos at gmail.com>:

> <http://www.marketoracle.co.uk/Article8541.html>
>
> U.S. Heading for Japan Style Two Decade Economic Depression
> Economics / Economic Depression Jan 28, 2009 - 12:58 PM
> By: James_Quinn
>
> Every day seems worse than the previous day. Five hundred thousand
> people are getting laid off every month. Our banking system is on life
> support. Retailers are going bankrupt in record numbers. The stock
> market keeps descending. Home prices continue to plummet. Home
> foreclosures keep mounting. Consumer confidence is at record lows. You
> would like to close your eyes and make it go away. Not only is the
> news not going away, it is going to get worse and last longer than
> most people can comprehend. The Great Depression lasted 11 years, but
> the more pertinent comparison is Japan from 1990 until today. A two
> decade long downturn has a high likelihood of occurring in the United
> States. There are many similarities between the U.S. and Japan, but in
> many areas the U.S. has a much more dire situation. If the next decade
> resembles the Japanese experience, there will be significant angst and
> social unrest.

It's pertinent that in Japan, massive monetary and fiscal stimulus
could not prevent deflation for the best part of twenty years. The
property and share market bubble was just too big for the extra money
to do anything other than slow its deflation. And this was despite the
fact that, unlike the American shopping-and-finance economy, the
Japanese actually produced things the rest of the world wanted, and
the rest of the world was still buying.


-- 
Stathis Papaioannou