Here's where the conclusions of the abstract and physical economic models diverge to the extreme. This primarily is because the one sees the world through the "Looking Glass" of neo-classical economic theory, while the other sees the world through the finite constraints of physics and absolute mathematics. Hence, we anticipate both the Japanese and Chinese economies heading towards unprecedented collapses, bringing the rest of the region to its knees.
Why? Simply, because these are relatively resource poor nations and declining at an exponential rate on a per capita basis. Remember, we are in the peak oil period and then headed for a rapid decline rate period that could be even higher than the expected 4% per annum. Unless Jim knows something we don't -like how to run an economy with without cheap energy, then water, then food, then....
Tell us more Ole Mad Hatter
Dr Peter G Kinesa
July 2, 2013