Well, if your debt is 250% of GDP dan the interest rate that you need to pay is 4%, it means that your interest costs will be around 10% of GDP, or maybe around 50% of your annual budget. Typically annual national budget is around 20% of GDP. Can any country sustain to use up 50% of your annual national budget only to pay for the interest costs of your national debts?? And, that your export is hit by those tariffs?? And your economic growth is 1% annually at best?? I really wonder…
Their population is in decline and getting older. The younger generation is not having children because they can’t afford it and their costs are likely to go up. But everything if fine.
All this finessing and explaining away of the financial markets, but the underlying assumption is that Japan will miraculously develop a highly productive future. I hazard to guess, the 'growth' likely comes from their exploding tourism industry.
😂 forget Japan! Just focus into USA and the disaster caused by the current administration lead by The Asset, imposing tariffs from a restroom, creating inflation, affecting the economy with a clear attack on immigrants and blue states, permanently ruining international alliances, etc
Nearly half that debt is owned by the Bank of Japan, it was effectively an inflationary measure by the government and the central bank. The central bank 'printed' yen and loaned it to the government, the government spent it to stimulate the economy and prevent deflation.
If worse comes to worst, the Bank of Japan can just forgive all this debt and stop interest collection, dropping all pretense of this being a loan instead of simple money printing.
They can also sell these bonds in the private market to soak up excess money supply floating around in the economy but at the cost of increasing the yields.
Japan's economy has been far from conventional, so the government and the central bank have been using unconventional fiscal policies.
The primary purpose of bonds is a tool for determining the interest rate, not just for funding the government. That's why half of this 250% of gdp debt its owned by the Bank of Japan itself. Only 12% is owned by foreign investors.
This will crash the Japanese economy in the future as they don’t have future productive population happening, they will have a smaller aged population. This will be terrible for the Japanese economy, but good for tourists
The unloading of US Treasury Bills is coming. Japan is the biggest holder. With the USD depreciatibg fast better dump to support tge Yen than hold onto a losing asset.
Wow thats insightful af… “the key is how the government spends going forward and how the underlying economy is doing” that is true for every country on earth! Hust say what you want to say wsj: “we wsj, and the US government have a lot invested and tied to japans debt so dont panic everyone just buy the japanese dip” 😂😂😂
"smallest deficit", how about governments balance their budgets, and if they have debt, generate a surplus. Debt requires servicing, and servicing debt creates an economic drain.
There's no growth in Japan. Only inflation. Inflation leads to higher bond yield demands, which leads to central bank printing, which leads to yen depreciation. Unlike the US, Japan is not energy nor food independent (90% energy imports, 60% food imports) Therefore, lower yen = higher inflation Higher inflation = higher yields Higher yields = more printing = Inflation = yields = printing = inflation… Also known as the Big Debt Cycle.
Takaichi is trying to monetize the debt by taking 50% of Japanese standard of living away over 5-10 years – so 6-8% a year. She'll get them to agree by inciting nationalistic fervor aka "China is attacking us we have to build our military"
So don't listen to this junk. Japanese yen is toast.
44 Comments
Silver hit 100😭 we retiring good❤️🩹
Yeah no need to panic. Just because youre on fire, doesn't mean youre going to die right away.
Their net debt is a lot lower than their gross debt.
Definitely time to panic then 😂
Thats what Madoff said to his VICTIMS…NO NEED TO PANIC!
If I'm Japanese, I rather put money into my domestic market than some foreign one. Yea, y'all got plenty to panic about…
Never bet on growth to solve your insolvency… you never know the how tomorrow will be.
Nah, doesn‘t convince me.
If the interest I have to pay suddenly doubles, I worry an effing lot!
Well, if your debt is 250% of GDP dan the interest rate that you need to pay is 4%, it means that your interest costs will be around 10% of GDP, or maybe around 50% of your annual budget. Typically annual national budget is around 20% of GDP. Can any country sustain to use up 50% of your annual national budget only to pay for the interest costs of your national debts?? And, that your export is hit by those tariffs?? And your economic growth is 1% annually at best?? I really wonder…
End of Japan
Women at power seem to work fine, well done ladies
代々木の共産党本部を庶民向けタワマンにすればいいと思います！！蕎麦屋が近いんで良い場所です！！
Their population is in decline and getting older. The younger generation is not having children because they can’t afford it and their costs are likely to go up.
But everything if fine.
Funny that others say Japanese government debt is 149% of GDP. Who is right?
Lol, made no mention of the reverse carry trade nor the basis trade. Guys telling you not to panic and is giving a modicum of the full story.
Japanese Liz Truss strikes.
You should be worried about people dumping US bonds because they hate the USA!!!
They were 0% for decades and you people complained. Now they are over 3% and you people are complaining. Good lord!
All this finessing and explaining away of the financial markets, but the underlying assumption is that Japan will miraculously develop a highly productive future. I hazard to guess, the 'growth' likely comes from their exploding tourism industry.
Their interest rates payments are 25% of receipts
😂 forget Japan! Just focus into USA and the disaster caused by the current administration lead by The Asset, imposing tariffs from a restroom, creating inflation, affecting the economy with a clear attack on immigrants and blue states, permanently ruining international alliances, etc
Yen carry trade unwind gonna make us crash upto atleast 20 percent..
Another day in the Office…
"Forget Greenland" yeah in the short term. But the US is going the way of Japan. Divest from the USA before the crowd..
Nearly half that debt is owned by the Bank of Japan, it was effectively an inflationary measure by the government and the central bank. The central bank 'printed' yen and loaned it to the government, the government spent it to stimulate the economy and prevent deflation.
If worse comes to worst, the Bank of Japan can just forgive all this debt and stop interest collection, dropping all pretense of this being a loan instead of simple money printing.
They can also sell these bonds in the private market to soak up excess money supply floating around in the economy but at the cost of increasing the yields.
Japan's economy has been far from conventional, so the government and the central bank have been using unconventional fiscal policies.
The primary purpose of bonds is a tool for determining the interest rate, not just for funding the government. That's why half of this 250% of gdp debt its owned by the Bank of Japan itself. Only 12% is owned by foreign investors.
Nobody needs a house in Japan, so it’s okay.
Discussing things like “GDP” while an entire nation goes extinct is ludicrous
Panic everything is crashing buy sike its the only safe thing too do
This will crash the Japanese economy in the future as they don’t have future productive population happening, they will have a smaller aged population. This will be terrible for the Japanese economy, but good for tourists
Forget Greenland ??? It’s not yours
Wow, you guys really wrote a script, edited this with B-roll and graphics, and hit publish…Bold.
Win-Win,!!
The unloading of US Treasury Bills is coming. Japan is the biggest holder. With the USD depreciatibg fast better dump to support tge Yen than hold onto a losing asset.
Wow thats insightful af… “the key is how the government spends going forward and how the underlying economy is doing” that is true for every country on earth! Hust say what you want to say wsj: “we wsj, and the US government have a lot invested and tied to japans debt so dont panic everyone just buy the japanese dip” 😂😂😂
TY
LETS SEE HOW BADLY THIS AGES!
And sustainable growth of Japan can never be the case considering aging population.
I'm curious about how much Japan's population will decrease in 30 years.
"smallest deficit", how about governments balance their budgets, and if they have debt, generate a surplus. Debt requires servicing, and servicing debt creates an economic drain.
There's no growth in Japan. Only inflation.
Inflation leads to higher bond yield demands, which leads to central bank printing, which leads to yen depreciation.
Unlike the US, Japan is not energy nor food independent (90% energy imports, 60% food imports)
Therefore, lower yen = higher inflation
Higher inflation = higher yields
Higher yields = more printing
= Inflation = yields = printing = inflation…
Also known as the Big Debt Cycle.
Takaichi is trying to monetize the debt by taking 50% of Japanese standard of living away over 5-10 years – so 6-8% a year.
She'll get them to agree by inciting nationalistic fervor aka "China is attacking us we have to build our military"
So don't listen to this junk. Japanese yen is toast.
Ain’t nobody safe from this looming global crash
What do you recommend for securities companies? ?
Literally said nothing of value.