Japan will come out on top
because they do not have
to play nice to the USA for the simple reason that their Prime Ministers are
honorable people and are willing to step down
anytime.
I don't think your logic or facts are correct.
See:
...Nowhere has this been more the case in Japan, whose economy
has remained in the doldrums ever since its bubble burst in 1990.
For seventeen years straight, quarter after quarter, Japanese land
prices fell, and so did stock market prices – and hence, the
collateral pledged as backing for loans. This quickly left Japan’s
banks with negative equity. The Bank of Japan’s response was to
devise a way for them to rebuild their balance sheets – to “earn
their way” out of the bad loans they had made.
The policy was not to revive the faltering domestic market in Japan
or its industrial corporations. From 1945 through 1985, Japanese
had a model industrial banking system. But in 1985, U.S. diplomats asked
Japan to please commit economic suicide.
Angered by the striking success of Japanese industry,
U.S. officials asked
their compliant Japanese counterparts to raise the
yen’s exchange rate so as to make its industrial exporters less
competitive, and in due course to flood its own economy with
credit so as to lower interest rates, thereby enabling the Federal
Reserve to flood the U.S. market with enough cheap credit to give a
patina of prosperity to the Reagan Administration.
This policy – announced in the Plaza Accord of 1985 –
led economist David Hale
to joke that the Bank of Japan was acting as the Thirteenth Federal
Reserve District and the Japanese government as the Republican
Re-election Committee.
http://www.counterpunch.org/hudson1027
China is the one standing up to USA, not Japan.
