Japan's Economy in Big Trouble
Feb 26, 2009
Japan's exports dropped nearly 46% from a year ago, according to January's statistics.
How long can they sustain such losses without going into the tank with the rest of the world? Japan has done well over the past decades, because of the large trade imbalance with America. But the golden goose is now cooked to a golden brown. Our "free trade" policy helped too many nations, and we committed economic suicide.
Many of us saw this coming decades ago. It's only surprising that America was so resilient that it took this long for the whole thing to implode.
By the way, what does "free trade" mean if no one does any international trading? Remember the Baltic Dry Index (BDI)? Shipping is down 94-95%. Obviously, the policy is not working very well these days.