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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (95780)	3/27/2009 10:27:04 AM
From: philv	1 Recommendation Read Replies (1) \| Respond to of 116555

"The second episode took place 60 years later, in Japan. In 1996-97 the Japanese government tried to balance its budget, cutting spending and raising taxes. And again the recession that followed led to a steep fall in private investment." I don't agree with that article, especially the above sentence. I thought Japan spent heavily in infrastructure after their real estate bubble collapsed and banks had to write down losses. Japan incurred the world's highest debt to GDP ratio, double that of the USA. I just googled this excerpt: "Japan has relied on deficit spending to protect its economy since 1990, when revenues stopped rising and a speculative bubble burst, destroying Japan’s image as the great economic challenger to the United States. Throughout the 1990s, as the country’s economy contracted, the government invested heavily in public projects, racking up history’s greatest national debt — about 150 percent of gross domestic product (GDP). From 2003-2007, Japan returned to moderate growth and began — just barely — to trim back the deficits and debt and improve its fiscal standing, cutting back slightly on expenditures and seeing revenues rise by 17 percent." from: istockanalyst.com