Japan is now entering its THIRD DECADE OF DEPRESSION and it’s getting worse daily there.

Japan’s government is in big trouble with major scandals, its exports are falling, it has competition from Korean, China, and now Vietnam and other countries beating out its brands and it is still mired in the bad assets that started its collapse back in late 1989.

Japan’s Nikkei 225 stock index has plunged over 75% during the past 20 years from over 38,000 in late 1989 to around 10,000 now. The savings rate in Japan has plunged to near zero largely as a result of its seriously flawed and idiotic zero interest rate policies and Japan has the highest government debt to GDP ratio of any developed country.

The US is now following right in Japan’s footsteps and copying nearly every massive mistake Japan made. At the rate we’re going in America, we’ll be looking back on the great old days of 2009 the same way Japan now looks back at 1989.

The US economy has been collapsing since 1980 which is when the debt started to accelerate so massively in the US to “stimulate” the economy. Since then we have seen an endless stream of bubbles and ever higher debt until it is at the breaking point. Nothing was done to fix the structural problems that started breaking in 1980, but instead those issues were just papered over with ever higher debt to fuel mergers and acquisitions and firing of more and more people and the loss of good jobs to create short term quarterly profits for companies - at the expense of future stability.

Now the US is at a cumulative debt of over $40 trillion across all sectors, with $12 trillion of that being direct US government debt. There is no way bubbles can continue to be blown in that kind of debt environment.

- AmericanPatriot

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• How about no recovery for a decade?
• The sword that will cut the knees off this laughable “recovery”:
• This can’t be good… “US, UK and Japan. The GDPs of these nations are not expected to have average growth better than 3% over the next ten years.”
• From Denninger today — anyone know anything about AIG underwriting Greek debt? That could get interesting:
• The US deficit is about 10% of GDP and the gross debt of around 11 trillion is closing in on 100% of GDP.

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