The increased funds in the banks had to be lent to someone. These banks aggressively peddled loans to the finance ministers of poorer countries suffering from balance of payment difficulties, acute unemployment and consequent internal unrest. These countries borrowed extensively, but then found it difficult to repay the loans, which thus cumulated until debt payments rose to intolerable levels. It was just at this point that the Japanese competitive advantage suddenly blossomed, although Western Europe was also not doing badly, whereas the USA was suffering from so-called ‘stagflation’.