One day it will dawn on us that this is no ordinary recession. This is not a fiscal or credit crisis. Another trough in the usual boom and bust cycle. This time Keynesian prime-pumping won't work (if in fact it ever did, contrary to legend). We cannot spend or inflate our way out of this one.
Once again, we come upon another poignant anniversary. December 7, the day that the Japanese Imperial Navy attacked Pearl Harbor some 70 years ago. Like 9/11, it is traditionallly marked as a significant historical event. But I believe that it is significant for entirely different reasons than what we have been given. On December 7, 1941, the Japanese government undertook a desperate gamble.