FT: Japan’s Financial Services Minister Offers Advice for US

US can learn from Japan’s crisis

by Michiyo Nakamoto

(Financial Times) The US should inject public funds into its financial system, which is undergoing a worse crisis than that experienced by Japan during its non-performing loan crisis, according to Japan’s financial services minister.

“It is essential [for the US] to understand that given Japan’s lesson, public fund injection [into the financial sector] is unavoidable,” Yoshimi Watanabe told the Financial Times..

The blind leading the blind.

What turned Japan was 7%+ deficits particularly when you include fx purchases.

Same with the US in 2003.

It’s always fiscal that supports aggregate demand as a point of logic.