Tuesday, June 30, 2009

Japan unemployment rises to 5 1/2-year high

Japan is letting unemployment rise just as we are because of a flawed belief system. Japan is heavily dependent on exports to other Asian nations, particularly China, and as those exports decline, so does Japan's domestic output and employment.

They could act to stimulate consumption, but they don't, nor do we to any great degree. Only China, "gets it," and is doing whatever is necessary to increase domestic spending and investment. Both the U.S. and Japan are ceding economic leadership to China as a result of policies mired in myth and misconception.

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