Sunday, December 18, 2011
How is the American Stimulus Plan different from the Japan's Response in the 1990's?
We are heading the same way the Japanese did, I am sad to say. They have lowered interest rates to 0 and now they cannot raise them for fear of super inflation. People put their money in savings account and get no interest on their investments. They are basically trapped. That is why I cringed everytime the Feds drop the interest rate here. It is almost impossible to raise the rates and not create inflation. Bad situation. You would think that there was someone in our government smart enough in economics to see that it did not work in Japan, we should learn from their experience. But, Greenspan was a god unto himself and thought he was smart or something. Obama not hiring any much smarter either, if at all. Someone is needed that knows how the economy works and history. But, it will never happen.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment