I liked Japan a lot better when it was a quaint little town in that Bill Murray movie

Ever wonder what it’s like to live in Japan?  Wait no more:

Going further than analysts anticipated, the [Fed] cut its target for the overnight federal funds rate to a range of 0 to 0.25 percent, a record low, virtually bringing the United States to the zero-rate policies that Japan used for six years in its own fight against deflation.

Elvis has officially left the building vis a vis the U.S. economy.  This is basically the last thing the Fed can do to try and improve the declining fortunes of U.S. business.

It also means that we’re officially in a “liquidity trap” — too many dollars chasing too few profitable investments.  The only way out of this — which is the same way Japan managed to keep its people going during their own crisis — is through fiscal policy.  Any members of Congress who disagree with Obama’s plans for a massive expansion in infrastructure spending should be reviled; their idealogical positions leading them to short-sightedness as criminal as Smoot and Hawley’s.

Going to be a long, strange trip.