Tuesday, February 24, 2009
Japan's "lost" Decade
Real estate lost around 85% of its value and what happened? Nothing. Interest rates were lowered from 8% to 0% (in other words negative rates) and what happened? Nothing.
Japan "hung on," with 0 growth, because they have an industrial plan, a health care system, a strong social system and a stronger social contract.
The monetarists have ruled the roost over the last 30 years and their methods have been effective in redistributing wealth upward, shifting power to finance capital, gutting the cities and the industrial sector and creating stock and real estate bubbles but when it comes to real asset investment; nada!
In the US and around the world their legacy is poverty, deficits, debt and now collapse.
Real investment is needed otherwise they will impoverish us more.
Smash the lenders, speculators and idle wealth! Towards an industrial policy and workers control!