A Play-By-Play Guide To America's Coming Deflationary Debacle

Bubble Flow

The Japanese scenario haunts the U.S. economy.

The idea that all the government spending the U.S. has used to bring the country back from recession may not prevent the economy from crumbling under the weight of its own debts lives in markets today.

There have been signs that the U.S. may differ from Japan’s balance sheet recession. The Federal Reserve’s quick response, the size of that response, and the current growth experience suggests that the U.S. may avoid the worst of Japan’s balance sheet recession.

But a lot of the data explaining Japan’s experience matches up with U.S. economic data, and when you look at those charts side-by-side, its fearfully revealing.

Japan Commercial Land Values

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

Japan Residential Land Values

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

Japan Land Values

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. Land Prices

Japan Asset Prices

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. Asset Prices

Japan Interest Rates

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. Interest Rates

Japan Money Supply

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. Money Supply

Japan Loans Outstanding

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. Loans Outstanding

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. Bank Profits

Japan Bank Profits

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

Japanese Markets vs. The World

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

Japan Stock Values

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. DJIA Values

Japan GDP

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

U.S. GDP

Look familiar. California for Tokyo, perhaps?

Source: Japan government paper, 'The Asset Price Bubble and Monetary Policy'

Don't believe us? Check out Richard Koo's presentation saying the U.S. is the next Japan.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.