kowenicki said:
LordChris915 said:
Kasz216 said:
NJ5 said:
If I can point at a single thing I learned during all this mess (I mean the recession) which greatly disappointed me, it was to find that countries which I always saw as rich have really been borrowing a lot of money to fund their governments. That goes for the vast majority of the developed countries. I was especially surprised to find out that Japan's debt is close to 200% GDP.
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200% GDP. I did not know that. Weird they always seemed like a fiscally conservative government... i mean it seems like they've done nothing even before the financial crisis when their economy was kinda depressed.
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Don't be, Japan's economy can service it's debt, they plan to be in debt!
The trouble is with countrys like the UK and USA where our debt outweighs our economy, it will take the UK 20 years to recover costing each tax payer around £23,000 over the course of their taxpaying lives!
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thats nonsense. its debt repayments outweigh its tax take for this year. they are in big trouble. go read.
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The difference is that the majority of Japan debt are public debt (170% of GDP by the World Factbook) while the UK debt is mainly external(365% of GDP)
The big problem in Japan is that they doesn't have enough tax payer to fund the retirement of their aging population. That is, they are deep in the red in when it come to the money needed to run the program to take care of all these retiree and probably other social program. On one hand it's a problem they can solve internally on the other it's probably not going to be a solution these retiree are going to like.
The UK however is more at risk as seeing it's credit rating drop, in which case you can see bye bye to the economy.
