>It's the weak link of neoliberalism, for sure. Japan's problem is, it
>doesn't have an EU-style superstate to funnel capital to its neighbors.
So if they have to destroy a significant fraction of their capital, their most rational reform would be to turn their investments in their neighbours into outright gifts and hope to regenerate current economic activity in Japan on the strength of increased economic activity in the region as a whole.
Of course they would need some sort of political understanding with their neighbouring economically subordinate states for such apparent generosity to seem attractive.
But they have no choice that a fraction of their capital must be destroyed.
Chris Burford
London