Dennis is correct. The Japanese are playing a different game to reposition themselves for the long haul while playing dumb with American advice. None of the countries that followed American/IMF prescriptons are doing that well.
Henry C.K. Liu
Dennis R Redmond wrote:
> On Tue, 4 May 1999, Doug Henwood crossposted:
>
> > Financial Times - May 4, 1999
> > DEPRESSED ABOUT JAPAN
> > Paul Krugman
> >
> > The trouble with Japan, in other words, is that while key policymakers now
> > understand the nature of their problems, they still lack the intellectual
> > courage to act on that understanding.
>
> Good for Japan. Krugman's argument is, frankly, a bunch of neoliberal
> crap. Japan has a net surplus of 800 billion euros vis-a-vis the USA,
> has cash reserves of 2.7 trillion euros, is successfully bailing out its
> banks and granting its industrial base plenty of time and credit to
> restructure for the Long Boom. The whole thing verges perilously close
> to the racist "poor-weak-sarariman-not-able-to-wield-White-Male-Rentier-
> Phallus" stereotype retailed by our bourgeoisie in the Seventies, i.e.
> claiming that Japan could never compete in luxury cars, high-tech chips or
> electronics -- segments they now co-own, along with the EU. If only
> Japanese elites starting firing people left and right, went deep into hock
> to foreign countries, and trashed real wages, why, everything would be all
> right!
>
> Still, I find it interesting that Krugman expresses frustration that
> *Japan just won't listen to us anymore*. That's a good sign.
>
> -- Dennis