How Japan Will Being Down the Global Economy

Here is a lovely fact that should make you think, Japan's debt to GDP ratio is 230%. Compared to America at 100% and Greece at 150%. Japan owes so much money that with an aging population, rising medical costs, and a cultural anger towards immigration, they have no way to pay it back. Forget the EU or America, Japan is so large it can't be bailed out. This is the real story the media does not want to tell as its not fixable:



thediplomat.com...

Originally posted by travis911
Here is a lovely fact that should make you think, Japan's debt to GDP ratio is 230%. Compared to America at 100% and Greece at 150%. Japan owes so much money that with an aging population, rising medical costs, and a cultural anger towards immigration, they have no way to pay it back. Forget the EU or America, Japan is so large it can't be bailed out. This is the real story the media does not want to tell as its not fixable:



thediplomat.com...

So to who do they owe all this money to? The Chinese?

This also interesting


www.webofdebt.com...

The Japanese government can afford its enormous debt because it owns the bank that is its principal creditor. But competitors are attempting to force the bank’s privatization. If they succeed, they could propel the country into debt servitude along with other credit-strapped nations.

And from what i understand about the nature of their characters, Japanese don't really like to spread bad news and rather nod it away

Here is the whole list of top 132 national debt

Hmmm... I take it you hadn't looked at the actual dollar figures to see what the debt is? I notice that story doesn't mention it. That's a LONG article about debt too....and never once says the actual figure OF the debt. That HAD to take effort. It just throws %'s around. That isn't telling the whole story about debt and the United States owes more. Considerably more.

In fact, the U.S. is the largest debtor nation on Earth and Japan is #2. Err....

World Debt Visualized and Compared
(These numbers are a bit dated as those familiar with the US figure can see right away)

The comparison between nations is at the bottom. The actual breakdown to who owes a lot vs. who owes very little to anyone is startling and a figure I swear the media almost tries to hide for how little I ever see it mentioned.

The %'s are interesting for the trivia of keeping score and giving economists something to produce and report but those are all dollars that someone, somewhere figures they need back someday.

Even the oft heard claim that our debt isn't so bad because our public owns a good portion of it...misses the fact that means T bills and Bonds and the like, which some idiot out there thinks there is money to stand good for. If everyone tried to cash them at once? Insta-Crash and Kaboom. Japan is worse in terms of their public holding more of it...but that's kinda like the old child's game of how do you want to die? drown or burn?



(Fiscal Year 2013 Current and Projected Federal Debt - Breakdown by type)
White House Budget - Section 7 / Debt

The bottom number is the total across the top chjart moving out across the years.. ...The numbers are in trillions and I wonder...at what point it really just lost meaning in a real sense. Then again... Each single dollar of that is a paper someone is holding in a safe today or a bank or foreign nation has held in the same way...and really does expect paid back on.

Ponzi anyone? lol... can't play at this rate of growth forever.

Its only fake money, all someone has to do is hit the delete button and the problem will vanish.

But what happens when America loses its Reserve Currency Status. The interest will make America's National Debt jump to the heavens. And dont forget those derivitives.

I think countries will be flocking to China and the yuan before we know it.

reply to post by GaiusMarius

Yeah... 228 Trillion dollars in derivatives spread across 9 banks. (COUGH) All the gold ever mined on planet Earth since cave men went oogah boogah at the first colored stone carries a value of roughly 7 - 8 trillion dollars combined total. ....and consumption means not nearly that much still exists, BTW

Visualization of Derivatives

The numbers in the real figures are so far beyond fantasy land, it's not a crash coming as much as an implosion in the middle of a train wreck.

Where to go when the whole system just doesn't have basis to exist in the real world and finally..eventually..hits the point where illusions about it don't work anymore? Oh, politicians don't talk about a great many things.

reply to post by travis911


There is a major difference though between Japanese national debt and pretty much every other nations debt. The Japanese owe the majority of their debt to themselves rather than to international banks, etc.

Originally posted by Flavian
reply to post by travis911

 

There is a major difference though between Japanese national debt and pretty much every other nations debt. The Japanese owe the majority of their debt to themselves rather than to international banks, etc.

aha you mean the government owes it to their own loan and saving(pension) banks?, cause Japanese like to safe a lot of money..

reply to post by Foppezao


Exactly. And whilst huge amounts of debt is never a good thing, it is far better to owe it to your own than to outsiders (who couldn't give a monkeys about you). For example, whilst foreign banks may not care that calling in their loans would cause huge economic and social problems, your own banks and people probably will.

reply to post by Flavian


That´s true. As long as the major bank remains in government hands, Japan can increase its debt indefinitely without risk, since it only owes itself and not a third party/country/institution.