Tuesday, December 1, 2009
Howard Davidowitz: US is Broke and on The Way to Japan and Zimbabwe
Many economists draw comparisons between the United States now and Japan in 1990.
For those who aren't familiar with Japan's recent economic history, this is not a good thing. Japan's stock market peaked in 1989 at about 40,000. It now trades around a quarter of that level, or 10,000. GDP, meanwhile, has barely grown at all.
Economists used to refer to Japan's malaise as "a lost decade." Now they're saying "lost decades."
Our guest Howard Davidowitz sees a similarly horrific future in store for the U.S. He calls America's current path, rich in deficit spending and weak in currency a "road to nowhere."
He also doesn't buy the arguments of those who reassure us that Japan's problems are "cultural" and "demographic"--and, therefore, that it's different here. Japan's problems are the same as our problems (artificially low interest rates and a bailout culture), Davidowitz says. The only difference is that we're about 20 years earlier into the collapse.
If we are Japan, what is the outlook for the stock market (and your retirement savings)? Not good.
If the DOW behaves the way Japan's NIKKEI has, the DOW will trade at about 4,000 in 2025.
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Not confusion, just robbery. Not mistakes made. Plans carried out.
ReplyDeleteHe's right, we are Japan and worse. Japanese live in tiny cramped housing, lower standard of living for most. American's will slide further down into poverty with higher unemployment in 2010..this country is finished.
ReplyDeleteMany bloggers talk about Japan's lost decade(s) and how the U.S. is now going the same route. But no one has talked about how that route affected the basic people in Japan. My image of the Japanese is that of a mildly prosperous people who have continued their lives, continued travelling, etc. Does anyone know how the 'lost decade' affected the Japanese people (other than stocks now being lower)?
ReplyDeleteArgentina collapse - research it and you will find that the exact same banks and players were behind that robbery. Same tactics. Nothing is hidden, nothing is different. Right in your face. Best way to get away with things nowadays.
ReplyDeleteThe Japanese as a people were not nearly as foolish as Americans. They didn't die off starving as Americans will. They were/are producers and creditors. We are consumers and spenders. They save, we squander. They are cautious, we are reckless.
ReplyDeleteNo comparison at all. We are an empty shell ready to be crushed.
I was thinking the Argentine style of collapse...Japanese people are very polite and mostly anti-violence against each other with strict gun control all of which we don't have in the US with rude, aggressive, panicky, gun packing criminals and people...God help us all :O
ReplyDeleteJust a small reminder, Japan's Unemployment rate FELL to 5.1%. Maybe its not so bad to head Japan's way as unemployment could fall....
ReplyDelete548 japan produces things, the us does not produce anything good anymore, we export war, weapons and fear, that's it, that won't create more employment, so our unemployment will continue to climb. During the great depression it was 25% we are at 20% give or take, so we are not far from total collapse.
ReplyDeleteThe system needs to collapse in its entierety , but the violence that will erupt is what scares me , especially during winter months when the food supply to Canada from the southern U.S/Mexico collapses , man this will be great hardship for Canada . I have rsearched and there is only a 5 day supply/stockpile of Food on good days and 3 days on bad days , i know how to hunt and grow basic gardens , but will it be enough ? At least in my area though dairy supplies are local and there are tons of farms , . God help us all . Because maybe next winter its when the U.s will totally be in Chaos, maybe even sooner according to Bob Chapmans latest information from his insider , They say massive recall of TARP payments will be called in in January 2010 to suppress hyperinflation . 1.5 trillion $ of it .
ReplyDeleteI wish you all the best of Luck my friends
V shaped as in vortex.
ReplyDelete