A poem for The Great Shimomura
Thu 9th Apr 2015
There once was a man
Who had a plan
To double the income of Japan
He said: “It’ll just take a decade.”
And, do not be afraid
For there will be no need for aid
No foreigner to be repaid
Militarily the world we assailed
And ultimately failed
Japan’s glory paled
But , when our technology we upgrade
When good things here are made
Again we shall invade
This time, though, we’ll do it through trade
And when the world with our goods is swamped
Our victory will be prompt
“ A decade ? ” in disbelief they ask,
“Not possible, for such a task,
requires too much savings.”
Oh, how silly their ravings!
He said: “Yes, a decade, don’t fret!
We’ll do it through debt.”
“But, without savings there can be no loans !”
One of them moans
They look unimpressed
An explanation they request
Their economic understanding was clearly deficient
For his great idea insufficient
In the great man’s eyes, a compassionate look
For their minds , he knew , would be shook
“My words you should heed
For savings there is no need
I know it sounds funny
But we have the power to create money.
To savings you just add new money creation
A simple modification
Of Keynes’ equation.”
“Money is but an accounting entry
Over debts it is a sentry
Today, as before, our banks can make it at will
Just like in the past they made many a bank bill.”
“And, with some careful assessment ,
The Bank of Japan could direct investment.
Yes, our income can double
Without any trouble.”
They could not believe their ears
Did this man have no fears?
“If what you say is true,
It is a situation we must rue.
We need to destroy such power,
Lest it us devour.
Japan needs innovation, Not money creation!
You forget about inflation.
Your plan would ruin our great nation!
But, perhaps you just jest
Or, more likely, you actually need a rest
It seems you have given up on reason
Against Japan your plan would be treason!”
The man looked with dismay
How could his proposal cause such a fray?
But he knew his idea
Was a true panacea
That he had made the greatest advance ever in economic understanding
That savings were not a prerequisite for lending
With knowledge their minds he had to equip
On the truth they had to acquire a grip
“What you do not know
Is what I to you want to show
That if you but credit direct
Where it has a productive effect
There will be more money, yes, but also a bigger product
Against Japan, there would be no misconduct
No inflation would the credit cause ...”
And then, overwhelming applause!
The great man had revealed them the truth
All economic woes his idea would soothe
Forever more wealth
Resources for good care of health
Just universal enjoyment
An economy not to crises prone
The benefits spread to the Tokyo Consensus Zone
In short, unstoppable progress
And never again any distress
Now if only in the West people got it, if here this idea held sway
Our many problems would also go away
All we would hear would be a resounding “Hurrah!”
If we just accepted the teachings of The Great Shimomura