Euro/Pound dive against the Yen

[NJ5]

routsounmanman said:

NJ5 said:

routsounmanman said:
200% ?!?!?!

And considering Japan's volume of income (or lack thereof), they're in deeper debt than us, right?

Yes their GDP is more than $4 trillion, so they have around $8 trillion in debt.

Interestingly, almost all their debt is owed to Japanese people. They have big savings so the government doesn't have to go borrow from foreigners.

 

So basically, the Japanese government went bankrupt, borrowed money from Japanese people themselves and drove them bankrupt too... What happens next year, when they still post deficits?

Well they could choose to go the Zimbawe way, printing their way out of the problem (which results in worthless money like the picture I posted above).

Or they could raise taxes really high, and the snake keeps eating itself for a while longer (postponing the problem and making it bigger).

Or they can stop stimulating the economy and giving welfare to people.

Or they could default on their debt and possibly have a lot of angry Japanese...