Let’s pretend that the United States economy is a football team. The coach calls the play. The running back runs right up the middle and is thrown for a loss. What does the coach do on the next play? Run the ball up the middle for a loss. And the play after that? Run the ball up the middle for a loss. And the play after that? Run the ball up the middle for a loss.
Other teams see what’s happening to the U.S. economy. So what do they do? Run the ball up the middle for a loss. In Japan, in Europe and elsewhere the losses mount. What’s the conclusion?
- Running the ball up the middle every play will result in a loss, or
- We need to run the ball up the middle more often.
The answer, if you’re paying attention to central banks and the actions of Japanese Prime Minister Shinzo Abe is, of course, B., as logic and politics rarely travel on the same highway.
Formerly the world’s number two economy behind the U.S., Japan’s future couldn’t have been brighter back in the ’80s, when “Japan Inc.” was all the rage. Today, if there really was a Japan Inc., it would have long ago declared bankruptcy. The “Land of the Rising Sun” has become the “Land of the Setting Sun.”