US can learn from Japan’s crisis

by Michiyo Nakamoto

(Financial Times) The US should inject public funds into its financial system, which is undergoing a worse crisis than that experienced by Japan during its non-performing loan crisis, according to Japan’s financial services minister.

“It is essential [for the US] to understand that given Japan’s lesson, public fund injection [into the financial sector] is unavoidable,” Yoshimi Watanabe told the Financial Times..

The blind leading the blind.

What turned Japan was 7%+ deficits particularly when you include fx purchases.

Same with the US in 2003.

It’s always fiscal that supports aggregate demand as a point of logic.

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