Why were people so paranoid about Japan's economic rise

>>3382633

If you're number 1, then it is wise to keep a sharp watch on whoever is number 2, and in the 1980's Japan was number 2.

>>3382677
/thread

jap car industry fucking Detroit in the ass mostly

Pretty sure the economic bubble and subsequent crash was based on shady housing market stuff.

>>3382633
>why did the Japanese economy go south in the early 1990s?
It's mostly that people suddenly got a brain and realized that Japan's GDP couldn't keep rising forever and would quickly run into physical and technological limitations so the bubble popped.
https://en.wikipedia.org/wiki/Japanese_asset_price_bubble

>>3382707
It was, just like ours. Makes you think we should've seen this coming.

The Japanese economy crashed because the entire things was a giant bubble fueled by their central bank. Money was so cheap that in order to receive any returns, people needed to invest the money in all sorts of risky ventures in order to make any kind of money, massively inflating assets of all classes. Since the economy went no where but up, people even began taking loans to finance their loans in order to earn even more money. What made things even worse was the Central Bank itself forced banks which were already recklessly lending, to lend even further beyond what they would consider normal. Eventually the Central Bank realized that economy was in a single giant asset bubble, and a crash was imminent. So they attempted to deflate the bubble by raising interest rates, but the problem is that bubbles can never be deflated, they simply crash. And when bubbles crash, they not only destroy any excess valuations based on speculation, they destroy any real gains made in the economy simply because firms cannot sustain themselves when their debt laden customers go bust. Japan is the singular example on how Central Banking is a blight upon nations.

>>3382633
>Why were people so paranoid about Japan's economic rise in the 1980s?

Non-white entity being a threat.

>>3382817
And now look at the PRC...

>>3382836
Pretty much.

Still, PRC has several huge advantages over Japan that give certain cement-colored houses headaches on a daily basis.

>>3382798
The problem with any kind of public or quasi-public institution is that its decision making process is heavily politicized, leading to inefficiencies and poor outcomes.

>>3382798
Good post.
Audit the fed

>>3382928
How would you go about auditing the Fed? What problems does the Fed have? What about the Fed's processes and systems do you want to audit?

>>3382944
I for one would like to know how the Fed makes it's monetary policy decisions and what logic they use during discussions. As it seems their policies are devoid of any attachment to the real world.

>>3382978
t. Austrian or Marxist brainlet

How much of Japan's economic trouble can be attributed to stagnant demographics?

>>3383254
A significant portion. As people age out of the workforce and aren't replaced they still draw resources and pensions and other forms of social security from the elderly are huge load on economies across the world.

Japan's population is like 1/3 of the US so to match the US economy it would need 3 times gdp per capita which is impossible.

China has like 4 times the population for the US so if its gdp per capita becomes even half that of the US it becomes much more powerful

>>3382707
Exactly this. And it was a gigantic fucking bubble.
>During the height of the 1980s Japanese property bubble, the Japanese imperial palace grounds were valued by some to be more than the value of all of the real estate in the state of California.