Notice to readers: This report and the next two reports will be pre-written, as I take my annual sabbatical. We will only report breaking news if some game-changing event takes place. The next report with weekly breaking news will appear on August 19th. Your understanding is appreciated.
The system of global economic governance has become dysfunctional at the highest level. The institutions created by the victorious powers after World War II—the IMF, the World Bank, the United Nations, etc.—have led to an extinction-level ecological disaster and extreme concentration of wealth in the hands of a parasitical elite.
China, with is multi-trillion-dollar Belt and Road Initiative (BRI), is rapidly sinking the gridlocked Western powers into irrelevance. For this reason, the White Dragon Society has been proposing the creation of a Western-led Future Planning Agency (FPA) as a complement to the Chinese BRI. This plan has high-level support from the Pentagon, the Vatican, and the British Commonwealth.
The FPA would be modeled after the Japanese Economic Planning Agency (EPA) that was behind Japanese decades of spectacular (often double-digit) post-war economic growth. The system culminated in the mid-1980’s with Japan having the highest per-capita income in the world and the lowest gap between the rich and the poor in the OECD (Organisation for Economic Co-operation and Development). Therefore it would be a good idea to examine how the Japanese EPA worked before fleshing out plans for the FPA.
The heart of the Japanese system was an informal group of about 20 or so bureaucrats, industrialists, and politicians. The politicians would convey what the people wanted, the bureaucrats would say what was realistic, and the industrialists would advise as to what was profitable. Together they would come up with a plan of what they wanted to accomplish for the country over the next five years.
The plan would start with the Bank of Japan doing a systematic survey of the country. They would send officers to stores around the country to check the prices of goods. They would also survey businesses large and small as to what their business plans were, and in particular how much equipment they intended to buy. Based on this data, the BOJ would calculate exactly how much money would be needed to meet the investment plans without creating inflation.
The money was then allocated to the private banking sector. The private banking sector was divided into nationwide “city banks,” regional banks, and specialized banks. Each corporation had its “main bank” and these banks supplied the corporations with funds in accordance with the overall plan.
Once it was decided how much money was to be injected into the economy, then the other bureaucracies, especially the once-famous and feared Ministry of International Trade and Industry (MITI), would make their plans. MITI was staffed by some of the most intelligent people in Japan who passed the nearly-impossible-to-pass top-level civil service exams.
MITI was not like a communist central planning authority, but rather created a general roadmap for private industry to follow. For example, if the five-year plan called for doubling the number of highways in Japan, MITI would make sure the car companies were given whatever help they needed to build enough cars to fill the new roads.
The main point of this whole system was that the country as a whole had a sense of direction and an overall plan for the future. This made it easier for companies and individuals to plan their own futures.
Despite its incredible success, the Japanese system had a major flaw. This was caused by a system of …