by Randy Shannon
Treasurer, PA 4th CD Chapter of Progressive Democrats of America
Rampant speculation, asset bubbles and corruption led to a crash of the Japanese economy in 1990. Like the U.S. government today, the government of Japan was controlled by the banks. The government of Japan liquidated the savings of the people of Japan, most of which were in Postal Savings accounts, to bail out the crooked banks. This bailout wrecked the economy and took ten years to overcome. The economy of Japan is still struggling at a very low growth rate.
The U.S. government bailed out the crooked banks with $13 trillion of debt that obligates future generations to a long term economic recession. The bankers oppose any measures that would require the U.S. government to increase its debt beyond the debt already incurred to rescue themselves.
Thus stimulus spending to get production and employment going is opposed or gutted with tax cuts. Businesses with debt that they are able to service are seeing their debt called by the banks, forcing the businesses into bankruptcy. Infrastructure projects are not funded or underfunded while millions of construction workers are idle. Over 840 small and community banks are official “problem banks” facing foreclosure, not rescue. The Republican and Blue Dog Democrat neo-liberal majority is reluctant to extend unemployment benefits.