Myth of the 20th Century Princes of the Yen – The Rise and Fall of Japan, Inc.
Nov 20, 2020
Hans dives deep into Japan's postwar economic history, drawing from Richard Werner's insights. He discusses Japan's transformation through the Meiji reforms and the significant impact of military industrialization. The conversation explores the Bank of Japan's shift from credit guidance to a speculative economy, contributing to the 'lost decade.' Hans critically analyzes the rise of Japan Inc., foreign acquisitions, and eventual economic collapse, highlighting the consequences of central bank independence and the complex relationship between finance and governance.
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Favor Savings And Productive Investment
- Preserve high national savings and coordinated investment to build productive capital rather than fueling speculative consumption.
- Encourage reinvestment in productive sectors and maintain policies that favor long-term industrial capacity.
Firms Preferred Speculation Over Production
- Corporations chased quick speculative returns, diverting finance from productive capital to asset purchases.
- Werner and Hans argue that non-productive credit growth amplified systemic fragility before the crash.
Werner's Publishing Run-In
- Richard Werner said his publisher was visited by a U.S. agency and blocked two chapters in the original edition.
- Werner later regained those chapters in a 2nd edition but reported censorship attempts and video takedowns.
