Come il Giappone ha affrontato il problema del debito

Come il Giappone ha affrontato il problema del debito

I want to just give you the Japan example. Some people say, well, Japan didn’t have a debt problem. Um, and um, of course, Japan had um, and still does have a lot of debt. But what did they do? What they did was um, to print a lot of money and buy those bonds. And in the process of doing that, they gave the bond holders an average of 3% lower interest rates than in the United States. And they devalued the currency by an average of 4% over this period of time. And so that caused them to lose 45% Japanese bonds to lose relative to US bonds and 60% relative to gold. And as a result, the average Japanese worker used to make the equivalent of about $3,500 a month. And now they make about $2500 a month measured in dollars. In gold terms, they used to earn 13 ounces of gold equivalent in a month. That is now 1 ounce the equivalent. If you were a US investor who kept their money in yen denominated bonds or the yen currency versus the dollar, uh, you’d be down about 84%. My new book breaks it all down for you. It’s out on June 3rd. Pre-order it today. I wrote this book so that you can understand what’s happening and what’s coming next. How countries go broke the big cycle.

What happens when a country mismanages its debt?

In 1990, Japanese policymakers decided to deal with its debt obligations by printing a lot of money to buy bonds. They further devalued the currency by giving bondholders significantly lower interest rates than in the US.

As a result, Japanese bonds lost 45% relative to US bonds and 60% relative to gold over the next few years.

That had a real impact on the average Japanese worker, who lost a significant amount of buying power — and those impacts are still felt today.

My new book, How Countries Go Broke: The Big Cycle, breaks it all down for you.

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