They should know, and now we’re repeating the same mistakes.
U.S. politicians and Federal Reserve officials are attempting to put the economy back on track with aggressive deficit spending and severely reduced interest rates. Nearly 20 years ago Japan tried the same approach, with little success. What happened in Japan’s “lost decade” provides an insight into what Americans may expect in the coming years.
After a credit-induced boom in the late 1980s, Japan’s stock and real estate markets tumbled. From a high in December 1989, the Nikkei Index fell in less than a year by 46 percent. Within two years it had fallen by 59 percent. Following the crash, loan defaults soared _ sound familiar? _ and Japan’s Urban Land Price Index began an unbroken decline that continues to this day. As of the latest measure, 2008, the index was well under half its 1991 level. Japan’s economic growth also stalled, averaging less than 1 percent per year from 1991 to 1999 _ and actually declining in 1993, 1998 and 1999. The rate of unemployment doubled during the 1990s as well and has never recovered. …
Looks like we’re headed for a double dip recession due to our massive debt. The liberal news has buried this portion of the story. P.S. Thanks for posting my video here.
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