The Real Lesson

Just saw a most excellent discussion on the only news channel I can stand, namely Bloomberg.

The stats were from the Japanese economy. The Japanese economy is a predictor of the world economy; the lesson learned by the idiot governments of the world is to assume that the state assistance to businesses in the bubble-pop of the late eighties was in some way responsible for saving the Japanese economy and fostering the erroneous assumption that it is in some way insulated.

In fact, they demonstrated that Japan has suffered ( so far ) the worst GDP collapse since 1974. Anybody who remembers 1973-74 also remembers that the slump lasted ten years. But back to Japan.

Japanese companies are unable to make money domestically due to the state interference in the slump of 1989, which allowed a huge number of Japanese companies to remain in competition for a saturated and diminishing domestic market without ever having to take hard restructuring decisions.

This is the model being actively pursued and imitated everywhere else today.

In the nineties, Japanese companies were able to export their way out of the Doldrums on the back of a resillient world economy; if the fools like 'Barmy' Obama and 'Chocolate' Brown have their way, we will finally have reached a world in which it is no longer possible to blame the failure of socialism on the fact that it isn't universal.

In fact, worldwide stagnation or collapse is assured, and if Japan is anything to go by, it will be collapse.