Once the global economy rolls over into contraction, the tide will recede and Japan’s fiscal and monetary bankruptcy will become painfully apparent.
What do you get after 25 years of stagnation and Keynesian Cargo Cult monetary stimulus? A failing state, that’s what. The intellectually bankrupt ruling Elites of Japan have no solution for Japan’s slow stagnation, as real reform would diminish their wealth and power.
So their only “solution” is to double-down on monetary stimulus: flood the enfeebled Japanese economy with more credit and fiscal stimulus, a.k.a. building bridges to nowhere: Japan’s Monetary Pearl Harbor.
But reality isn’t as immobile as failed policies.