1) Japan had a large savings buffer, anywhere from 14% to 18%, a stash for a rainy day that the US simply does not have. When it rained in Japan they could use their own umbrella, when it’s raining in the US, they have to ask the Chinese for an umbrella.

2) Japan had a strong global economy to export into, the US is a net importer. Alas the US will not be able to export anything anywhere as there are far too many factories making shoes, clothes, electronics and all sorts of widgets and gadgets around the world. The boom created years of overcapacity if not decades. So the US will fail in that regard.

Eventually the US will go down the way of the Soviets, all centrally planned economies fail eventually as is well known by Mr Bonner. America now has a plethora of Czars and God like Treasury Secretaries and maniacal central planners like Ben Bernanke who seem quite happy blowing large sums of money on hapless projects such as guaranteeing banker bonuses.

So no long, slow depression for America. They’ll be the best at it in the world I say, beat the old Soviets at their own collapse game I say!

It does feel like those lows we saw in March need to be re-tested though, like there is another shoe to drop…