Why can Japan have a strong currency, the lowest bond rates in the world, combined with 200% of GDP government borrowing? The answer is the savings of ordinary Japanese people.
If governments are feckless and cannot be trusted, the behaviour pattern of people is entrenched and changes but rarely and slowly, and in Japan, the people save money, and they amass huge financial backing, not just the rich, but most Japanese people.
People should learn more about how international markets work, and save and invest their own money, not relying on so-called ‘professionals’ to do it, who invest in their own interests to a great extent. The internet makes this possible for the first time, and trading platforms like Interactive Brokers are accessible to all, who have $100,000 to spare. It’s not a lot.
We also need to stop the Vince Cable equality agenda, and start persuading people to become wealthy in their own right, and not rely on the state. Maybe that will come along in time. Japan, on the other hand, seems unable to shift the burden of her over-sized state, and her progress is locked. Japan and Britain can learn from each other. The financial crisis will expose all these imbalances, and put pressure on us all to change. Even Vince Cable might begin to understand that private wealth is a strength, not a weakness.