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Our Next Economic Plague: Japan Disease(good article on aging economy)
Caixin ^ | 03/15/10 | Andy Xie

Posted on 03/15/2010 6:16:46 PM PDT by TigerLikesRooster

By Andy Xie 03.15.2010 18:20

Our Next Economic Plague: Japan Disease

Growing old is hard, but watching formerly vibrant economies choke on debt and wither away is downright ugly

Japan's nominal GDP fell 6 percent to 475 trillion yen last year, while its real GDP declined 5 percent. Meanwhile, nominal GDP in the United States decreased 1.3 percent to US$ 14.2 trillion and real GDP fell 2.4 percent.

If you travel across Japan and the United States, you get the impression that America is in much worse shape: Americans cannot stop screaming about their woes, while the Japanese face economic sufferings quietly. Maybe this is due to cultural differences. Regardless, Japan is in dire shape. Its nominal GDP is now lower than it was in 1992 when the nation's property prices first began to decline.

Japan's status is frightening because its problems will spread to all of us in the future. Everyone knows what it's like to grow old. And history is full of examples of empires that grow old, wither and die. For modern economies, though, this is a new concept.

There are clearly factors behind the aging of an economy. All of these factors are now at work in Japan.

/snip

New Disease

Decades ago, the Netherlands had oil wealth. Strong export revenue pumped up its exchange rate while its industries shriveled under high costs. The Dutch took advantage of the high currency value and enjoyed life by buying a lot and not working much. When the oil ran out, hard times hit. Nowadays, when a country enjoys too much of God's gifts and forgets to work for a living, it's called Dutch disease. When an economy exhibits senile characteristics, I think it should be called "Japan disease."

(Excerpt) Read more at english.caing.com ...


TOPICS: Business/Economy; Foreign Affairs; Front Page News; News/Current Events
KEYWORDS: aging; demography; economy; japan

1 posted on 03/15/2010 6:16:47 PM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 03/15/2010 6:17:13 PM PDT by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster
There is money to be made by investors out there. It just happens to be in countries where free markets are allowed to function. Japan is not one of them, and it is beginning to be more clear that the US will not live up to its potential in the short and mid term.

Get government out of the equation and things will pick up. If not, short treasuries.

3 posted on 03/15/2010 6:24:02 PM PDT by mlocher (USA is a sovereign nation)
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To: TigerLikesRooster

Well, the solution to our economic woes is pretty simple.

We need another World War! :)

If we win, we lose, because we spend our National Treasure rebuilding the rest of the freakin’ world...who eventually end up owning a good portion of us because we’re so in debt we sell our shares to whoever wants them. (Japan, Anyone? We kicked their @sses and yet these days they own a good chunk of the USA.)

If we lose, we lose...because no one else is STUPID enough to rebuild the rest of the world when they have everyone elses treasure to rebuild their own!!

Grrrrrr! I quit.

(Yep. I’m in one of THOSE moods tonight, LOL!)


4 posted on 03/15/2010 6:24:38 PM PDT by Diana in Wisconsin (Save the Earth. It's the only planet with chocolate.)
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To: TigerLikesRooster
Right on point! And unfortunately, despite all the copious warnings they had when there was still time to avoid it, our feckless, reckless "leaders" in Washington have given us the world's biggest case of raging Japanesitis - no doubt it will end up being called the "American disease" before we're through it. In all fairness, though, it ought to be called the "Liberal Disease" because that's whom both we and the Japanese caught it from.

Perhaps I ought to change my slogan from "liberalism is a mental disease" to something like "liberalism is an intellectual STD"


5 posted on 03/15/2010 6:29:23 PM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
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To: TigerLikesRooster

The fix is easy to figure out, hard to get a worthless pile of excrement in DC to follow through with:

1. cut spending
2. cut taxes(note: spending must be cut first!)
3. reduce regulations on business
4. allow real estate markets to collapse
5. break unions
6. raise retirement age
7. deport all illegals and seal the borders
8. abolish anchor baby law and make it retroactive 18 years
9. cut ss benefits
10. cut social programs
11. eliminate federal funding of education and student loans
12. abolish the fed(or at least make it transparent)
13. deflate money supply
14. energy independence


6 posted on 03/15/2010 7:28:17 PM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: TigerLikesRooster
Interesting article.

This fear about "Japan Disease" is one big reason why the U.S. is so hell-bent on granting amnesty to millions of illegal aliens.

7 posted on 03/15/2010 7:46:50 PM PDT by Alberta's Child (God is great, beer is good . . . and people are crazy.)
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To: Alberta's Child

If granting amnesty meant increases in work force with a corresponding increase in the worker to retiree ratio, I would be all for it. But where are the jobs. Manufacturing has moved off shore, financial industry is next to go. London was once a financial hub, until they regulated the industry away, Dodd is about to do the same. The service industry needs a churning economy to thrive, thus the SEIU needs Obamacare to swell its ranks with doctors and nurses on the fed payroll. The welfare state is like ebola, killing its host called capitalism.


8 posted on 03/15/2010 8:23:17 PM PDT by OldGoatCPO
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To: mamelukesabre; All

I am wondering if we could get a relatively mild law passed that only a child conceived and born in the United States could be considered a citizen if the parents were illegals.


9 posted on 03/15/2010 11:34:39 PM PDT by gleeaikin
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To: mamelukesabre

Sounds like Sarah Palin’s campaign platform to me. :)


10 posted on 03/16/2010 5:35:53 AM PDT by Diana in Wisconsin (Save the Earth. It's the only planet with chocolate.)
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To: OldGoatCPO

“The welfare state is like ebola, killing its host called capitalism.”

Shhhh! The Average Working Wo/Man isn’t supposed to know that kind of stuff! ;)


11 posted on 03/16/2010 5:37:24 AM PDT by Diana in Wisconsin (Save the Earth. It's the only planet with chocolate.)
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