William,
"That's the "Asian model" - the government , through banks , funnels free money to manufacturers who produce and export like an S.O.B. and kill the competition with low prices. No profit necessary - maybe no debt repayment necessary. WHY do you think so many of these countries have such a mess of bad debt tangled up throughout their labyrinthine financial structures? The debt just gets rolled and rolled until they can dominate a market and begin to make a steady profit."
That's roughly why I said in an earlier post that this whole mess is the logical conclusion of their economic (if you want to call it that) model. Works until too many companies (or countries, in this case) try to do it, and overwhelm each other. Then you get the laughable joke of Samsung "blaming" the Taiwanese for the DRAM oversupply, as they most recently did last week. Poor, innocent Samsung, caught by those greedy Taiwan companies.
That is why, too, that these calls for the Japanese to lower taxes to stimulate consumption are silly. It's not a problem of consumption, it's the economic structure, stupid. IMHO. |
