Why did japan go through same housing bubble and spend billions bailing banks yet no inflation but deflation?
please watch all of this clip,and read below,
or the answers are not close to the subject,or add to comment,
it explained what japan did. they already have been through this same thing, the housing bubble .
their banks got stuck with toxic home loans and the economy died as lending stop,
so the Japanese government paid the banks billions to clear the bad loans, and still they had no inflation, but were stuck in deflation for ten years only 2008 did they have a little inflation.necessary
spending print extra money I don't think its a given to have huge inflation. but the real danger is Deflationary spiral, or not enough money and consumer spending available ,so spend that 13.00 a week the job it might save might be your,
a bush family ,your link dont work.
- 1 decade agoFavorite Answer
Japan has a very strict policy for the control of the money supply. And the people of Japan put more money into savings than any country in the world.
Japan mainly borrowed money to pay for it all, not print money. It currently has far more government debt per person than the U.S... Around two times more debt (per person) than the U.S..
To DJnCSpri... : America setup a highly devalued currency in Japan after WW II. That is why Japan was quickly able to build a export economy. It was not a "guinea pig" approach.
Currently, the Yen is trading at $1.00=100 yen. The yen was less than 30% percent of its current worth during WW II. Many people blame the growing value of the yen for the collapse of its bubble. Just the same way people blame artificial inflation of the dollar (through currency manipulation) for the loss of U.S. jobs.
"After the World War II, the Dollar/Yen exchange rate was fixed at $1.00=360 yen."
- DJnCSpringsLv 51 decade ago
Great clip the compassion and humbleness of the Japanese is nothing short of astonishing. You ever think you will see a smug *** CEO in the US apologize and weep like a baby?
Truth be told in the book "Mobs, Messiahs, and Markets" they go into short detail about how we used Japan as a guinea pig to see if this grand scheme that we are getting ready to crash land would actually work. This says less about deflation and more about how FIAT currency always bringing Empires to their knees. We should have never been allowed to run up the credit lines that even the most unqualified have taken advantage of. This is our grand illusion of entitlement as Americans. Also the reason why half the world wants or wanted at some point to come here. The only reason it's still afloat is because countries like China and the Saudi's are still buying T-bills backing our paper currency showing its still viable on a world stage what happens when the music stops? Almost all OPEC nations have decoupled from the dollar already unpegging their oil from it.
It is deflationary now yes you are right but the trickle has not yet even begun. We can never print enough paper to keep this thing going. it's not about money it's about production or in our case the lack their of. We will soon see Brenton-woods III Only this time it will be on a global scale this is what if you have been paying attention lately you have seen all the leaders of the G8 nations calling for a New World Order if you will.
EDIT~ Here is a great clip of how this can't be sustained!!!Source(s): "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.." -THOMAS JEFFERSON
- ErikaLv 44 years ago
some human beings think of that the Federal Reserve Banks are usa government establishments. they're inner maximum monopolies which prey upon the folk of those usa for the earnings of themselves and their distant places shoppers; distant places and kin speculators and swindlers; and wealthy and predatory money lenders." – The Honorable Louis McFadden, Chairman of the domicile Banking and forex Committee interior the Thirties the wealthy and strong won't in any respect enable the electorate to administration their wealth and ability. we can't provide up it. look what's occurring while a flesh presser (Obama) is attempting to boost taxes on the wealthy and rich basically some opportunities? they have brainwashed somewhat some to think of that elevating taxes on the elite and wealthy are a redistribution of wealth which they call welfare. humorous how somewhat some who've remark in this would possibly not in any respect make 250,000 a 365 days of their lifetime to rigidity a pair of small boost in taxes to help the midsection type occasion that fool Joe the plumber. individuals are their very own worst enemies. The overdue George Carlin pronounced: the wealthy make somewhat some the money and pay not one of the taxes. the midsection type makes a sprint of money, and could pay all the taxes; and, the destructive are in basic terms there to scare the ***** out the midsection type, and shop them going to those jobs." nicely pronounced Mr. Carlin.
- Anonymous1 decade ago
Because Japan was a creditor nation and had high savings rates. To compare Japan with US is a mistake, US is the world's biggest debtor nation and has negative savings rate.
Stimulus packages in US can only lead to hyperinflation.