Gloups, gloups ... 14 years ago, people were expecting a rise in US interest rates!! Will Japan's Slump Stifle a U.S. Recovery? Posted Monday, Mar. 23, 1992 (.....) A recession in Japan could hurt the recovery by slowing demand for American products. In addition, Japanese businesses could try to bolster sagging domestic profits by aggressively selling more products overseas, an action that would surely worsen trade tensions. Finally, since Japan helps finance the U.S. budget deficit, some fear that a significant curtailment of Japanese investments in the U.S. could drive interest rates higher.