why does japans econmy stink?

The story began in 1985 when Japan was forced to appreciate the Yen. The consequence was very severe because of the structure of the economy which was built as Japan Inc. Industries had to move out of the country like a flying Goose.Japan has had entered the liquidity-trap since then. It means the rate of interest was closed to zero,but it has had no effect on the economy and the market. More, it had a deflation until Abenomics, 2 years ago. But printing money the same of the US QE does not work so far. The GDP growth rate has become negative, and the Yen has too fast and too many depreciated so that the imports prices, mostly energy, have been skyrocketing. The government has also raised tax to 8%, and will be up to 10% as schedule. But people have been crying louder and louder, to cause the government to collapse. The new election will be on December 14. let wait and see that the Abenomics will survive.

Japan has suffered from being the world's premier make-and-trade economy.

Their output massively exceeds their own market demand or requirements.

They depend on export to maintain their GNP and to bolster the Yen.

Since 2008, the world [esp USA and Europe] have been importing less and trying to manufacture more of their own requirements.

Result No1: Japan has seen a huge reduction in its trade income and also in its invisible earnings.

Earlier attempts by the Japanese government to maintain higher interest rates simply squashed industrial investment.

Later attempts at QE and low interest rates have damaged international confidence in Japanese monetary-policy. They left things too late.

Result No2: the world has moved on and found new suppliers for its electronic and automotive requirements; and Japan has been left behind. China, Taiwan, Russia, Sth Korea, Eastern Europe etc are taking over their markets.

There is a lesson here for USA. The same seems to be happening to the American economy so that US balance of payments are now in deficit by about $600 billion each year. How will Japan and US reclaim their international market positions? If they ever can.

go on youtube and type in "japan's balance sheet recession" then watch the video by Richard Koo. He sums it up pretty well. I would link to it but i can't link yet.

virtually all japanese manufacturing and wealth creation has moved to other eastern countries it's why toshiba , sony , panasonic etc no longer are regarded as premium brands, so jobs are fewer and worse paid , mix that in with misbehavior by japanese banks and that is a formula for a recession , at one time ONE large building in tokyo was used to secure Billions in loans

That manufacturing happens in China, not Japan.