Well the other side of the coin is that if Japan hadn't taken the actions of fiscal stimulus they did/are ,deflation would have really taken a hold and their economy could be in far worse state than it is now. They are after all still one of the wealthiest nations on earth, with a high standard of living.
I think the thing with deflation in the US(same as in UK)at present we have what are seen as temporary factors injecting inflation into our economies but the long term indicators suggest that deflation is the real fear. You simply wouldn't be printing money if that wasn't the case. Not to mention interest rates at near zero.
Their bubble was created out of many economic factors and it burst, there was too much debt, too many bad investments etc. The deflation was the signal to clear the table.
But Those weren't cleared out, the failed institutions were/continue to be bailed out and suck more and more resources and on and on. They have been in the ditch for 25 years or so and they continue to do the same tired old central bank/stimulus schemes with no change in outlook or result. Hell, they've had ZIRP for 2 decades! That is what's going on in the U.S. now with massive deficits, monetization of govt. debt, stimulus etc....and it isn't working. In the coming Japanese elections they are still chirping about how fiscal stimulus to help a slowing economy is a big election topic.
After a collapse and bubble burst the healing won't be easy, it will painful and maybe even long but probably shorter than what Japan continues to go through and what we in the U.S. will be going through for the next 2 or so decades.
All this crap does noting but further distort markets which leads to more bubbles, more imbalances, more mal-investment and more burned up capital. All that free money will certainly help the already rich and those closest to the policy making and money funnels but the middle class on down take it in the ass.
Just my opinion and I see where you are coming from with yours....but this is the true version of Financial Alchemy.
