Why Aren’t We Looking at the Japanese Economic “Lesson?”
From Profit Confidential
January 31, 2013 - 1:43am
Quantitative easing hasn’t done much for the “small guy” in the U.S. economy other than create jobs in low-wage-paying sectors, while the “big guys” have enjoyed the propping up of stock prices. Why aren’t we looking at the Japanese economy as a lesson? After all, what happened there could very well become the fate of the U.S. economy.
Our Federal Reserve unleashed multiple rounds of quantitative easing and so did the Japanese central bank when the country’s crisis hit back in the 1990s. But after eight rounds of money printing, the Japanese economy is back in recession.
What happened in the Japanese economy as it printed money? Its currency, instead of going down in value against other world currencies, went up in value. But all that is changing now. Just look at this chart:
Chart courtesy of www.StockCharts.com
The Japanese yen has been rising in value since July of 2007...Continue reading this article »