posted on Mar, 14 2011 @ 05:11 AM
How will Japan finance its reconstruction?
According to IMF figures, the ratio of general government gross debt to GDP was set to reach 228% this year, and 233% in 2012, even before taking any
account of the costs of reconstructing the area devastated by the quake and tsunami. The gap between government revenues and expenditure for 2011 is
forecast at more than 9%.
AND YET the Japanese Investment Bank, Nomura seems to think that Government bonds will Appreciate in value. Also, Nomura's chief economist Takahide
Kiuchi said - in a conference call with investors this morning - that he expects the quake and disaster will contribute to a contraction in the
Japanese economy of between 1% and 1.5% in the three months to the end of June.
Even afetr a MASSIVE Natural diaster occurs, the Banking Lot are trying to protect themselves......!