“The Japanese say it’s because America has become a land without substance. We let our manufacturing go. We don’t make things anymore. When you manufacture products, you add value to raw materials, and you literally create wealth. But America has stopped doing that. Americans make money now by paper manipulation, which the Japanese say is bound to catch up to us because paper profits don’t reflect real wealth. They think our fascination with Wall Street and junk bonds is crazy.”
What strikes me is that this was written in 1992-1993, and even then it was evident to all those with rudimentary knowledge of macro economics that it was an unworkable situation that would one day come crashing down on us. Fifteen years later, in 2008, several large banks and investment firms are in trouble and are all saying ich habe es nicht gewusst.