Japan public debt above 200% GDP, Ponzi territory yet?

Discussion in 'Economics & Trade' started by kazenatsu, Jan 26, 2023.

  1. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Public Debt above 200% of GDP, Is Japan Economy in Ponzi Territory now yet?

    Japan Economy has how many zombie / Ponzi companies for a country with public debt at 200% GDP?

    When do you think the debt bubble will burst, just like US property prices of 2008, Ponzi values, nobody wants to buy the asset cos all values were obviously hyper inflated once the ruse was revealed.

    Japan bank (BOJ) governor already warns of very low funds/ negative current account budget for over 10 years.

    So next major disaster could be a tipping point for Japanese finances. The Japanese people will stoically accept high inflation along with retrenchments as well. The most elderly people bravely starve themselves to death, to save gahmen expenditure and so that their pension companies don't go bankrupt, so the younger elderly can enjoy at least a few retirement years, before they too must harikiri/ self sacrifice/ suicide after just a few years of retirement?

    What do u think will be the social/ economic outcome?

    Government hospitals stop treatment of elderly above a certain age level if there is a shortage of government funds? What will be the outcome?

    https://www.cnbc.com/2023/01/23/jap...ances-as-boj-struggles-to-contain-yields.html

    Japan's economy has been in the slow process of deflation ever since their "lost decade".
    This hasn't been entirely a bad thing. Land and housing prices have been going down (after being adjusted for inflation), making things more affordable to younger people, although a very large proportion of the wealth still rests in the hands of the older generation.

    I doubt anything in Japan can really "pop" now, but it will just lead to a slow continued process, already in the direction of what has been happening. It will put a hamper on Japanese economic growth. There will be inflationary pressures, but these will also be partly cancelled out by the continued deflation of the economy. Although lowering population could also add additional inflationary pressure.
     

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