Re: Japan

[DMS <dmschanoes@xxxxxxxxxxxxx>]

The article is very interesting.  I think a lot can be gained from posing and
investigating a simple question re Japanese capital spending, "Why Now?"

China's demand input to the Japanese economy is not now qualitatively higher
than it was 3 years ago, and if, as the article notes, manufacturer's capital
spending is highest in transportation machinery sector, i.e. autos, we really
need to know how much of that is export oriented for China, and how much
is direct spending on productive capacity in China and other countries, and
how much is targeted for domestic markets.

In the US, we know that the capital spending upsurge in the 90s was pre-
dicated on the 13 year period of liquidation of fixed assets in key industries
and reduction in real wages.

Does the 10-12 year stagnation of the Japanese economy include the same
type of alteration in the relationship between dead and living labor?

dms