Is Japan Sleepwalking into a Debt Crisis?

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With Japan seemingly out of their deflationary funk, bond yields are climbing as the yen is falling in value, sparking fears that a debt crisis could be on the horizon. So in this video, we’ll explain what’s happened and the dilemma Japan is now facing.

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44 Comments

  1. The fact that economists and the media are saying Japan’s economy is starting to look “normal” just shows how out of touch the field of economics has become. Japan’s middle class is shrinking rapidly, small businesses are failing in larger numbers do to higher costs, and rising asset prices are widening wealth inequality.

  2. japans real debt is only about one third of the 250%, most of the debt is debt owned by the government itself so they can just let it roll over. they borrowed so much to create inflation but now thats no longer needed. its quite similar to Quantitative easing.

  3. Also Japan is not safe at all, especially for women. Lots of stabbings and killing of women in Japan almost every week. There's also a growing homeless problem especially for the youth and middle aged.

  4. The only way PM Takeichi will make me happy is if she can get the Yen down to about 120 – 130 to the USD. Sadly, I'm not too optimistic.

  5. I’m going to say it, 45 to 50% of the debt is owned by the central bank while another 30 to 35% of the debt is owned by the Zaibatsu, the Japanese conglomerate like the Mitsubishi, Mitsui, etc. all the debt is yen dominated. Therefore, I really don’t worried about a Japanese debt crisis as the yen depreciation and positive inflation is part of the plan in the abenomics.

  6. Japan isn't even a real country. They are a satellite colony of the US. They do whatever we tell them to do. The Japanese are so miserable they lose 1 million people a year. It's basically a genocide of the Japanese people but the US doesn't care and the crazy conservatives destroying the 'country' got rich so they don't care either. They will never solve the debt crisis with the right wing lunatics running the show. I feel sorry for the Japanese people, they are disappearing into oblivion.

  7. Japan is moving toward expansionism. It is their nature. It is their national project. The Americans believe that it will stop just because they won a war like 80 years ago. That's not how that works. Debt does not matter if the creditor is dead.

  8. Ah I see it's time for the annual 'Will debt be the end of Japan????' video. The answer as usual, as it has been for the last 30 years, is 'no'. See you next year.

  9. Many people on the internet have said the only solution for this is to let in infinity immigrants. They can boost the economy by setting up learing centers all around the country.

  10. 日本の問題は、高市を含めてまともな政治家がいないことです。
    与党自民党も経済政策の失敗でわかる通り、国家運営に必要な能力を有していませんが、野党はより酷いので選択権がありません。

    野党の大多数は、国政選挙における外国人参政権付与に熱心になっているので、現状日本という国を守ろうとすれば経済を犠牲にしないといけない状況です。

    参政党という新政党が最近の国政選挙で大躍進しました。
    しかし、彼らはカルト宗教のようなものです。
    ワクチン反対、アメリカから小麦を輸入する前は癌はなかった、党首がネズミ講ビジネスのトップ、ユダヤ人と日本人は同じ発言、特定外来生物を勝手に放流、陰謀論信者。

    このような政党が大躍進するほど今の日本の政治家には選択権がないのです。
    日本が今の状況になっているのも仕方ない。

  11. It's not hard, tax the rich and use that to pay down debt and invest it anti-trust measures to encourage competition to increase wages.

    Only two things raise wages, competition for labour and unions.

  12. I suspect Takaichi is actually sleepwalking if her comments are to be believed.

    I don't trust anyone who sleeps 2-4 hours a night and the rest of the time working. Maybe she was exaggerating, or perhaps she has some kind of super gene that makes this OK, but I suspect she is just like the rest of us and actually totally exhausted and making poor decisions when she hasn't had 6+ hours.

  13. 不至于吧 即使我对日本不感冒 日本经济应该该好起来了啊 三十年前的房地产泡沫 现在正好结束啊 人人没有房贷 挣的钱吃喝旅游应该轻轻松松吧 我现在一个月七八千的贷款要是还完 那该多么轻松

  14. taking in foreigners will not fix it thats for sure. old people will die and things will come into balance again. people dont realize we live much longer than just some 100 years ago and we're now seeing the effects of it

  15. Japan got screwed with the Plaza Accord. I think they need to distance themselves from the US. Now they are printing even more money for defense spending for the big evil boogie man (China), while cost of living has increased for Japanese people. The deflationary period they had was better than what is to come.

  16. Sorry mate, but it is not a mild spiral. Just as with all other Western economies, the true inflation rate is closer to double digits… how do you get a doubling in a staple like rice over 2-3 years without that, and still rising.

  17. 1:50 Is “weak” growth necessarily a bad thing? Is growth for growth’s sake a good thing? Is focusing on the quality of life of citizens a bad thing? We need to re-think these assumptions and what you call “normal”.

  18. Japan need to provoke a war to reshuffle everything and hope it lands on a good ending. but i won't get my hopes up for a good ending for Japan looking at the war it is trying to provoke

  19. Wage push inflation theory was debunked long ago. I'm surprised you threw it into the mix, especially when you did a fairly good job at explaining the causes for inflation in Japan already.