Reaction to "America's Losing Decade"

This link was given to me on a forum during a discussion on American and Japanese economies.
In my reply I unintentionally ended up critiquing his blog post and restating my underlying economic beliefs (without getting into things like economic schools of thought and fiat currencies).
By all means please read his post and share your thoughts on my reaction below.

http://savingtheworldeconomy.blogspot.com/2010/11/americas-losing-decade.html?spref=tw

It was a comparison. I am hesitant to say "good comparison" because he failed to actually explain why his examples led him to his conclusions.
If I am right in interpreting his point, it is that Japan (and subsequently America) has shifted from a production based economy to a consumer economy, then I agree completely. But he seems to almost purposely leave out what he thinks his "new market structure" would look. Maybe because he is promoting his market synergy company he hopes someone will read that and PAY him for the answers, but his data and examples still support my argument:

1)Japan is structurally more sound than the U.S. because the individuals save more (even 0 is more than a negative number) and they are still comparably more, although not by much recently, production-based than consumption-based.
 
2)The "answer/fix" is to raise interest rates. In the short term (read: 1,2 years), banks will stop loaning, people and companies will go bankrupt, and more people will lose their jobs; yes. 
But in the long run (read: 2-10 years) fiscally sound companies, entrepreneurs, and investors with excess capital will buy up those assets, stimulating an expansion of productive jobs, resetting of the over-inflated housing market, innovation, and an economic environment that encourages savings and investment.