At This Rate, Japan Will Fade From Existence

Japan has adopted negative interest rates as the latest effort to revitalize its dying economy.

But the country has been falling down the demographic cliff after its baby boom ignited a surge of spending in the 1980s.

Look at Japan’s Spending Wave. This shows a 47-year lag from birth to peak spending:

Japan's Spending Wave

Japan’s pre-World World II baby boom peaked in spending in 1989 at the height of the country’s economic prowess. The last of its baby boom peaked in spending in late 1996. It’s been in a coma economy ever since. And unfortunately, it only gets worse overtime.

While it’s hitting Japan hardest right now, this is a demographic reality all developed nations must face. And right now it’s a problem with no solution.

Categories: Purchasing Power

About Author

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.