# Postponing the inevitable - Japan and the United States - What Free Market?



## onq (20 Sep 2010)

http://seekingalpha.com/article/225867-japan-intervenes-to-bail-out-america-s-consumers?source=email
*Japan Intervenes to Bail Out America's Consumers *

Odd comment in this piece

_"In a way, what the  Japanese government is doing for  American consumers is very similar to  what our government is doing for  American homebuyers. Rather than let  home prices fall, the US  government subsidizes homebuyers so they can  continue overpaying for  houses they cannot actually afford."_

I wasn't aware that American homebuyers cosidered themselves to be subsidised - many middle class Americans are working three jobs to support their families and mortgages and are one serious illness away from bankruptcy. As for the other comments within it; -

_"__Japan should allow the dollar to fall,  which would force  their manufacturers to adapt to a changing global  market where  Americans consume less, and those in emerging markets  consume more.  Instead, it is vainly trying to preserve the status quo  and appease  entrenched political factions."_

And

_"__Just like here in the  US, Japanese politicians take cover  by falsely claiming that the  intervention "saves jobs."  However, the  jobs that are saved come at the  expense of more productive jobs that  are either lost or not created. If  Americans cannot afford to buy  Japanese products, it makes no sense for  the Japanese to continue  selling them to us.  Rather they should devote  their time, effort,  savings and resources to selling products to  customers who can actually  afford to pay."_

Both seem to make some sense and the comparison between today and the dotcom bubble forcers of events is interesting.

ONQ.


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