Japan: Up or Down?...Deflation

[Lisa & Ian Murray]

the US exports inflation by forcing other nations to devalue; they
experience hyperinflation we maintain price stability.  Since other nations
must sell more of their commodities to achieve income levels approximating
the level before the forced devaluation, they export like mad, which is why
Seattle, SF, LA and Vancouver ports have been busy as bulldogs the last 20
months.  US consumers get lower prices--even the folks who don't get
raises--hence have a little greater purchasing power...Deflation is the
midwife of price stability...For more info see Jonathan Kirshner's Currency
and Coercion, Princeton University Press, 1995

Ian Murray
Seattle, WA


> -----Original Message-----
> From: owner-lbo-talk at lists.panix.com
> [mailto:owner-lbo-talk at lists.panix.com]On Behalf Of Chris Beggy
> Sent: Tuesday, June 15, 1999 6:55 PM
> To: lbo-talk at lists.panix.com
> Subject: Re: Japan: Up or Down?
>
>
> Henry C.K. Liu wrote:
> >
> >
> > Stiglitz and Krugman are both selling snake oil (quoting the
> Japanese) and are
> > merely doing the "if A does not work, how about B or C or A+C?"
>  They haven't a
> > clue on how to make Asia recover.  The fact is Asia will not
> begin to recover
> > before the US economy stops exporting deflation to feed its own
> bubble.  The
>              ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
> > beginning of global recovery will come after the US economy
> crashes.  The longer
> > the US bubble hold, the more severe the global pain when it
> comes.  And if the
> > pain is severe enough, neoliberalism may well be the casualty.
> >
>
> I haven't heard this before, and it sounds interesting.  In the 1980's a
> criticism of Japan was that it was exporting unemployment to its trading
> partners.  How does the US export deflation?
>
> Chris
>