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.