Hi all.
I am always interested when people use Japan as some sort of yardstick when mentioning deflation in Australia.
My limited knowledge tells me it is not a relevant comparison, because:
Japan has a very closed financial/banking system ie it is difficult to get a true picture of their solvency (many bad debts on their books).
Present PM came in with a message to deal with the problems, but, again, this one has turned from a tiger to a kitten - due to pressure applied.
They are very reluctant to "bite the bullet" on the hard decisions they must take ie write off bad debts etc
They do not like unemployment, and companies tend to over employ, although this is changing.
The Govt. have spent billions on infrastructure to create activity and jobs, eg build bridges. But this is only a short term solution, once the bridge is built, that's the end of the activity.
There is a high degree of self interest in the Govt, with many "politicians" also being involved in the companies that benefit from govt. contracts.
I know we are not perfect, but I believe we have a more open and accountable financial system (Govt. and Corporate), which makes us more likely to face up to issues. We still get hurt at times, and greed takes over, but generally we get back on track.
Any comments appreciated.
Geekay.
I am always interested when people use Japan as some sort of yardstick when mentioning deflation in Australia.
My limited knowledge tells me it is not a relevant comparison, because:
Japan has a very closed financial/banking system ie it is difficult to get a true picture of their solvency (many bad debts on their books).
Present PM came in with a message to deal with the problems, but, again, this one has turned from a tiger to a kitten - due to pressure applied.
They are very reluctant to "bite the bullet" on the hard decisions they must take ie write off bad debts etc
They do not like unemployment, and companies tend to over employ, although this is changing.
The Govt. have spent billions on infrastructure to create activity and jobs, eg build bridges. But this is only a short term solution, once the bridge is built, that's the end of the activity.
There is a high degree of self interest in the Govt, with many "politicians" also being involved in the companies that benefit from govt. contracts.
I know we are not perfect, but I believe we have a more open and accountable financial system (Govt. and Corporate), which makes us more likely to face up to issues. We still get hurt at times, and greed takes over, but generally we get back on track.
Any comments appreciated.
Geekay.