JAPAN BENEFITED FROM A NUMBER OF EXISTING FACTORS PREVENTING THE OCCURRENCE OF HYPERINFLATION AS ITS MONEY SUPPLY INCREASED:
1) JAPAN IS AN EXTREMELY PRODUCTIVE AND EXPORTING NATION, PROVIDING A SOLID FLOOR ON BOTH THEIR SUPPLY OF GOODS/SERVICES AND DEMAND FOR THE YEN!
2) THE WORLD ECONOMY DURING THE 1990s-2000s WAS EXTREMELY PRODUCTIVE AND OFFERED BOTH FOREIGN GOODS/SERVICES AND CAPITAL INFLOWS THAT PROVIDED A LID TO PRICES AND A FLOOR ON DEMAND FOR THE YEN!
3) THE JAPANESE POPULATION HAD AN EXTREMELY HIGH RESERVE OF SAVINGS THAT WAS ACCESSED THROUGH GOVERNMENT BORROWING AND TAXATION, AS OPPOSED TO DIRECT CENTRAL BANK MONETIZATION, PROVIDING A LID ON THE EXPANSION OF THE JAPANESE MONEY SUPPLY!
4) THE INITIAL ACTION OF THE BANK OF JAPAN PRIOR TO "ABENOMICS" WAS EXTREMELY TAME RELATIVE TO THE ACTIONS OF CENTRAL BANKS OVER THE PAST DECADE, PROVIDING A LID ON THE EXPANSION OF THE JAPANESE MONEY SUPPLY!
5) JAPANESE DEMOGRAPHICS SINCE THE LATE 1980s HAVE BEEN EXTREMELY DEFLATIONARY, AS THE POPULATION HAS SHRANK, MEDIAN AGE HAS INCREASED, POTENTIAL TAX REVENUE HAS CONTRACTED, CONSUMER SPENDING IS A FRACTION OF WHAT IT WAS AND CULTURAL ACTIVITY HAS IMPLODED. DESPITE ALL OF THESE DEFLATIONARY FACTORS PRICES HAVE INCREASED, INDICATING MUCH MORE INFLATIONARY PRESSURE THAN WHAT IS VISIBLE!
THE U. S.A. SIMPLY LACKS MOST OF THESE FACTORS AND WILL NOT BE SPARED THE INFLATIONARY PAIN OF THE POLICIES OF THE FEDERAL RESERVE!
1) JAPAN IS AN EXTREMELY PRODUCTIVE AND EXPORTING NATION, PROVIDING A SOLID FLOOR ON BOTH THEIR SUPPLY OF GOODS/SERVICES AND DEMAND FOR THE YEN!
2) THE WORLD ECONOMY DURING THE 1990s-2000s WAS EXTREMELY PRODUCTIVE AND OFFERED BOTH FOREIGN GOODS/SERVICES AND CAPITAL INFLOWS THAT PROVIDED A LID TO PRICES AND A FLOOR ON DEMAND FOR THE YEN!
3) THE JAPANESE POPULATION HAD AN EXTREMELY HIGH RESERVE OF SAVINGS THAT WAS ACCESSED THROUGH GOVERNMENT BORROWING AND TAXATION, AS OPPOSED TO DIRECT CENTRAL BANK MONETIZATION, PROVIDING A LID ON THE EXPANSION OF THE JAPANESE MONEY SUPPLY!
4) THE INITIAL ACTION OF THE BANK OF JAPAN PRIOR TO "ABENOMICS" WAS EXTREMELY TAME RELATIVE TO THE ACTIONS OF CENTRAL BANKS OVER THE PAST DECADE, PROVIDING A LID ON THE EXPANSION OF THE JAPANESE MONEY SUPPLY!
5) JAPANESE DEMOGRAPHICS SINCE THE LATE 1980s HAVE BEEN EXTREMELY DEFLATIONARY, AS THE POPULATION HAS SHRANK, MEDIAN AGE HAS INCREASED, POTENTIAL TAX REVENUE HAS CONTRACTED, CONSUMER SPENDING IS A FRACTION OF WHAT IT WAS AND CULTURAL ACTIVITY HAS IMPLODED. DESPITE ALL OF THESE DEFLATIONARY FACTORS PRICES HAVE INCREASED, INDICATING MUCH MORE INFLATIONARY PRESSURE THAN WHAT IS VISIBLE!
THE U. S.A. SIMPLY LACKS MOST OF THESE FACTORS AND WILL NOT BE SPARED THE INFLATIONARY PAIN OF THE POLICIES OF THE FEDERAL RESERVE!