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Japan Warns of Economic Collapse From Debt

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posted on Jun, 12 2010 @ 12:05 AM
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news.bbc.co.uk...

The new Japanese PM has stated today that the country is at risk of a Greek style economic collapse and needs a financial restructuring.

From the article:
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The Japanese austerity plans may not be welcome elsewhere in the world.

Over the weekend, US Treasury Secretary Timothy Geithner called on surplus countries - like Japan, Germany and China - to do more to increase spending.

Yet Germany has announced plans to cut its budget deficit by 3% of GDP over the next four years, while China's trade surplus has grown even further, according to data for May.

With Japan also now looking to wield the fiscal axe, some may wonder who is actually going to spend money in the world economy
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He is expected to announce tax hikes this week.

Coming soon to a USA near you. Of course, this is just two days after Ben Bernanke said publicly that the "European debt crisis will have little effect on the US". I beg to differ.




posted on Jun, 12 2010 @ 12:18 AM
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More bad economic news.


Maybe we ought to just go back to the bartering days.



posted on Jun, 12 2010 @ 12:21 AM
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reply to post by babybunnies
 


Its an absolute miracle that Japan can issue debt at about 1%. Its crazy and its a marvel they have not collapsed already. If their interest rate goes up by .5% they are simply toasted. Its amazing to see that a country can have 200% debt-to-GDP ratio and not fail. 100% is considered a collapse danger. Greece's ratio is about 122% but they have a higher interest rate on their debts.

The way it seems to work is this: central banks issue the banks money, then in return for the banks to use that to issue credit to the states. Its a house of cards the size of Mount Everest. The whole global system of fraudulent money is going to collapse in a monumental fashion. Its just a matter of time.



 
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