{"id":721897,"date":"2010-04-22T12:38:00","date_gmt":"2010-04-22T16:38:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/your-play-by-play-guide-to-the-great-deflationary-2010-4"},"modified":"2026-10-04T12:25:13","modified_gmt":"2026-10-04T16:25:13","slug":"a-play-by-play-guide-to-americas-coming-deflationary-debacle","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/721897","title":{"rendered":"A Play-By-Play Guide To America’s Coming Deflationary Debacle"},"content":{"rendered":"

\"Bubble<\/p>\n

The Japanese scenario haunts the U.S. economy.<\/p>\n

The idea that all the government spending the U.S. has used to bring the country back from recession may not prevent the economy from crumbling under the weight of its own debts lives in markets today.<\/p>\n

There have been signs that the U.S. may differ from Japan’s balance sheet recession. The Federal Reserve’s quick response, the size of that response, and the current growth experience suggests that the U.S. may avoid the worst of Japan’s balance sheet recession.<\/p>\n

But a lot of the data explaining Japan’s experience matches up with U.S. economic data, and when you look at those charts side-by-side, its fearfully revealing.<\/p>\n

Japan Commercial Land Values<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

Japan Residential Land Values<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

Japan Land Values<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. Land Prices<\/h2>\n
\"U.S.<\/div>\n

<\/p>\n

Japan Asset Prices<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. Asset Prices<\/h2>\n
\"U.S.<\/div>\n

<\/p>\n

Japan Interest Rates<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. Interest Rates<\/h2>\n
\"U.S.<\/div>\n

<\/p>\n

Japan Money Supply<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. Money Supply<\/h2>\n
\"U.S.<\/div>\n

<\/p>\n

Japan Loans Outstanding<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. Loans Outstanding<\/h2>\n
\"U.S.<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. Bank Profits<\/h2>\n
\"U.S.<\/div>\n

<\/p>\n

Japan Bank Profits<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

Japanese Markets vs. The World<\/h2>\n
\"Japanese<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

Japan Stock Values<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. DJIA Values<\/h2>\n
\"U.S.<\/div>\n

<\/p>\n

Japan GDP<\/h2>\n
\"Japan<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

U.S. GDP<\/h2>\n
\"U.S.<\/div>\n

<\/p>\n

Look familiar. California for Tokyo, perhaps?<\/h2>\n
\"Look<\/div>\n

Source: Japan government paper, “The Asset Price Bubble and Monetary Policy<\/em>“<\/p>\n

<\/p>\n

Don’t believe us? Check out Richard Koo’s presentation saying the U.S. is the next Japan.<\/h2>\n
\"Don't<\/div>\n

See Richard Koo of Nomura’s presentation here ><\/a><\/h2>\n

Join the conversation about this story »<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Japanese scenario haunts the U.S. economy. The idea that all the government spending the U.S. has used to bring the country back from recession may not prevent the economy from crumbling under the weight of its own debts lives in markets today. There have been signs that the U.S. may differ from Japan’s balance […]<\/p>\n","protected":false},"author":1217,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-721897","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-31Nv","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/721897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/1217"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=721897"}],"version-history":[{"count":1,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/721897\/revisions"}],"predecessor-version":[{"id":823496,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/721897\/revisions\/823496"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=721897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=721897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=721897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}