Japan's two-decade romance with Keynesian economics has led to another betrayal — and yet the press and all the supposedly smart economists and analysts seem to believe that just one more fling might bring about a different result.
The Land of the Rising Sun, aka the Land of the Two-Decade Zombie Economy, has just reported an annualized contraction of 0.8 percent in the third quarter. The decline, following a revised 0.7 percent second-quarter downturn, means that the country is once again in a recession — its second in three years (Update: And fifth since 2008). Oh, but don't worry. It's no big deal. The Associated Press insists that it's only a "technical" recession, and more Keynesian "stimulus" could set things right — even though such measures, in place to varying degrees since the 1990s, have consistently failed to bring about sustained, meaningful recoveries: