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Forums - General Discussion - Japan's Debt Problem Visualized - Not Good

MDMAlliance on 07 April 2013
ironmanDX said:
Start a war with North Korea, or someone else. War can do wonders to a country's economy.

Just destruction otherwise though.


No, war has never been good for any country, ever.  All war does is destroy things and results in deaths.  

edit: In terms of their economy.



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_crazy_man_ on 07 April 2013
thranx said:
have they done one for United States debt by chance? I would like to see that one


http://www.youtube.com/watch?v=OJk6vcztEds



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markers on 07 April 2013
kowenicki said:
thranx said:
have they done one for United States debt by chance? I would like to see that one


Japan's debt issues are far worse than the US... In fact they are far worse than anyone's. 


I feel Greece takes the cake on all the fininacial problems at this point in time.



JazzB1987 on 07 April 2013
MikeRox said:
ironmanDX said:
Start a war with North Korea, or someone else. War can do wonders to a country's economy.

Just destruction otherwise though.


It's a myth that war is good for the economy. Wars bankrupt countries. Being able to take advantage of the window of repairation is where economies benefit. See the US after the second World War (UK etc were all near bankrupt from financing that war for 6 years).

Japan's new government is now having a last ditch attempt at going on a mega money printing spree to inject inflation into the economy. It's one of the biggest games we've ever seen with a county's finances as it could well leave them with an uncontrolable debt burder. On the plus side for Japanese companies like Sony and Nintendo it will seriously devalue the Yen meaning they will make far more profit on overseas sales and allow plenty of scope for price drops.

Ask the US government how much $$$$ they made thanks to WW2. German trucks had FORD motors etc.  The US was supplying Germany with material to fight Russia  and when Germany was to good at beating Russia they supplied Russia with material so Germans couldn't defeat Russians. It was a smart move in terms of economics but not in terms of humanity.

War is just bad for the country that loses the war for the others its usually just short term loss with long term profit.



thranx on 07 April 2013
JazzB1987 said:
MikeRox said:
ironmanDX said:
Start a war with North Korea, or someone else. War can do wonders to a country's economy.

Just destruction otherwise though.


It's a myth that war is good for the economy. Wars bankrupt countries. Being able to take advantage of the window of repairation is where economies benefit. See the US after the second World War (UK etc were all near bankrupt from financing that war for 6 years).

Japan's new government is now having a last ditch attempt at going on a mega money printing spree to inject inflation into the economy. It's one of the biggest games we've ever seen with a county's finances as it could well leave them with an uncontrolable debt burder. On the plus side for Japanese companies like Sony and Nintendo it will seriously devalue the Yen meaning they will make far more profit on overseas sales and allow plenty of scope for price drops.

Ask the US government how much $$$$ they made thanks to WW2. German trucks had FORD motors etc.  The US was supplying Germany with material to fight Russia  and when Germany was to good at beating Russia they supplied Russia with material so Germans couldn't defeat Russians. It was a smart move in terms of economics but not in terms of humanity.

War is just bad for the country that loses the war for the others its usually just short term loss with long term profit.


participating in a war is usually not good for an econmy. supplying other nations who are at war, rebuilding other countries after a war, and having a war wipeout all compitition is good for your economy. big diffrence between the two.



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Tallgeese101 on 07 April 2013

Greece is about 160-180% of GDP, Japan is 250%ish

Difference is Japans debt is largely owed domestically and they can ignore the issue much longer. Similar thing happened in the 90s with their banking crisis that started their 'lost decade' (decades now?) of growth.



thranx on 07 April 2013
Miguel_Zorro said:

I remember when they said Japan would overtake the U.S.

I guess that didn't go so well.

All countries eventually go down the wrong, foolish path.  Some day, China will too.


they may, but i have more faith in them right now than the US



Weedlab on 07 April 2013

At least the interest rates are still at record low levels. The new head of the central bank (and the government of Shinzo Abe) has shown deep interest in combating the country's deflationary spiral. They want to obtain a weaker yen (help exporters) and pump mild inflation into the economy to encourage consumption and investment. The thing to watch though is the relationship between both rates - a rise in inflation is also accompanied by a rise in interest rates, and I bet people will keep their eyes on the interest rate when you consider Japan's debt levels. But as the video showed .... they have bigger issues to worry over. :/



 

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LemonSlice on 07 April 2013

Excellent video, except for that terrible IDM music! Aaaaaargh!!!!



haxxiy on 07 April 2013
Miguel_Zorro said:

I remember when they said Japan would overtake the U.S.

I guess that didn't go so well.

All countries eventually go down the wrong, foolish path.  Some day, China will too.

China is building up assets, though, while both Japan and the US have a large percentage of their yearly GDP as national debt.

That's like borrowing money and stating you're wealthier because of it... someone is clearly missing the concept of financial clearing here. 

*

Either way, Japan's saving grace so far is that they are a higher saving rates keeping interest down, otherwise they'd long have gone the way of Greece... but who knows how long it will last, really.