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Forums - Sales Discussion - Euro/Pound dive against the Yen

NJ5 on 05 February 2010
Malachi said:

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.


Public debt = government debt

External debt includes debt owed by lots of entities (individuals, companies, etc). They're not comparable.

However you're probably right that UK owes more to foreigners than Japan does, since Japan is probably the country which borrows the most from its own citizens.

 



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LordChris915 on 05 February 2010
justinian said:
kowenicki said:
gamelover2000 said:
kowenicki said:
Dont worry, the Yen will have to be devalued soon, it has to unless Japan want to utterly screw themselves. They have to do something soon, Japans tax take this year wont even meat their own debt payments. They are effectively bankrupt too.

On Europe... expect Portugal, Spain and Italy to follow Greece soon.

It was sooooo obvious that a common monetary policy and common currency couldnt work for such different economies... especially economies propped up by inflows of european cash.


the Euro is still one of the most stable currencies ever.. FAR more stable then the GBP or USD


for now.

they may, and it has been rumpoiured they will, just kick greece out of the EU of course.


These rumours have little substance. It is not as easy as that - to give a member state the boot, I am not sure it is even possible - at least under the current circumstances.

The big question here is will the EU let Greece default on it's debt, this is very unlikely.

Greece blatantly lied so should be punished but how?

Greece is not a very important part of the greater E.U. economy.

Greece might end up dealing with the IMF?

 

The mediterranean were always going to be the first to fall, this is the problem with a common currency!



Malachi on 05 February 2010
NJ5 said:
Malachi said:

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.


Public debt = government debt

External debt includes debt owed by lots of entities (individuals, companies, etc). They're not comparable.

However you're probably right that UK owes more to foreigners than Japan does, since Japan is probably the country which borrows the most from its own citizens.

 

Most of Japan public debt is debt owed to their social program, so to their own citizen, which was my point since Japan external debt(which would include the public debt owed to foreign entitie) is only a little over 30% of GDP. So they have a lot of debt yes, but debt owed to their own citizen contrary to the UK who own a lot of debt to foreigner which would screw them over if their credit rating take a hit.



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justinian on 05 February 2010
LordChris915 said:
justinian said:
kowenicki said:
gamelover2000 said:
kowenicki said:
Dont worry, the Yen will have to be devalued soon, it has to unless Japan want to utterly screw themselves. They have to do something soon, Japans tax take this year wont even meat their own debt payments. They are effectively bankrupt too.

On Europe... expect Portugal, Spain and Italy to follow Greece soon.

It was sooooo obvious that a common monetary policy and common currency couldnt work for such different economies... especially economies propped up by inflows of european cash.


the Euro is still one of the most stable currencies ever.. FAR more stable then the GBP or USD


for now.

they may, and it has been rumpoiured they will, just kick greece out of the EU of course.


These rumours have little substance. It is not as easy as that - to give a member state the boot, I am not sure it is even possible - at least under the current circumstances.

The big question here is will the EU let Greece default on it's debt, this is very unlikely.

Greece blatantly lied so should be punished but how?

Greece is not a very important part of the greater E.U. economy.

Greece might end up dealing with the IMF?

 

The mediterranean were always going to be the first to fall, this is the problem with a common currency!


So true, but if I was a gambling man I would have placed my bet on a former Soviet\communist state being the first to fail, and lost.

@Malachi

Yes, Japan's debt is more "secure" whilst the Uks is at the mercy of others - so to speak.



routsounmanman on 05 February 2010
kowenicki said:
gamelover2000 said:
kowenicki said:
Dont worry, the Yen will have to be devalued soon, it has to unless Japan want to utterly screw themselves. They have to do something soon, Japans tax take this year wont even meat their own debt payments. They are effectively bankrupt too.

On Europe... expect Portugal, Spain and Italy to follow Greece soon.

It was sooooo obvious that a common monetary policy and common currency couldnt work for such different economies... especially economies propped up by inflows of european cash.


the Euro is still one of the most stable currencies ever.. FAR more stable then the GBP or USD


for now.

they may, and it has been rumpoiured they will, just kick greece out of the EU of course.

Firstly, I don't think that's even possible. Secondly, should US kick California? Of course the US are a nation whereas EU is more of an entity, but, kicking any country, especially one of the first to have joined the EU would cause some serious stir in the EU circles. It would bring out a message like "you're welcome, but screw up, and you're done".

Moreover, Greece may not be a very strong country economically, yet geographically it's invaluable. Plus, it has a strong and viable commercial and military navy. Lastly, Greece has special bonds with the East, with countries like Egypt and Israel; it's EU only way to reach out to them.



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LordChris915 on 05 February 2010
routsounmanman said:
kowenicki said:
gamelover2000 said:
kowenicki said:
Dont worry, the Yen will have to be devalued soon, it has to unless Japan want to utterly screw themselves. They have to do something soon, Japans tax take this year wont even meat their own debt payments. They are effectively bankrupt too.

On Europe... expect Portugal, Spain and Italy to follow Greece soon.

It was sooooo obvious that a common monetary policy and common currency couldnt work for such different economies... especially economies propped up by inflows of european cash.


the Euro is still one of the most stable currencies ever.. FAR more stable then the GBP or USD


for now.

they may, and it has been rumpoiured they will, just kick greece out of the EU of course.

Firstly, I don't think that's even possible. Secondly, should US kick California? Of course the US are a nation whereas EU is more of an entity, but, kicking any country, especially one of the first to have joined the EU would cause some serious stir in the EU circles. It would bring out a message like "you're welcome, but screw up, and you're done".

Moreover, Greece may not be a very strong country economically, yet geographically it's invaluable. Plus, it has a strong and viable commercial and military navy. Lastly, Greece has special bonds with the East, with countries like Egypt and Israel; it's EU only way to reach out to them.

I wish the EU would kick the UK out, we would be better off on our own!



routsounmanman on 05 February 2010
LordChris915 said:
routsounmanman said:
kowenicki said:
gamelover2000 said:
kowenicki said:
Dont worry, the Yen will have to be devalued soon, it has to unless Japan want to utterly screw themselves. They have to do something soon, Japans tax take this year wont even meat their own debt payments. They are effectively bankrupt too.

On Europe... expect Portugal, Spain and Italy to follow Greece soon.

It was sooooo obvious that a common monetary policy and common currency couldnt work for such different economies... especially economies propped up by inflows of european cash.


the Euro is still one of the most stable currencies ever.. FAR more stable then the GBP or USD


for now.

they may, and it has been rumpoiured they will, just kick greece out of the EU of course.

Firstly, I don't think that's even possible. Secondly, should US kick California? Of course the US are a nation whereas EU is more of an entity, but, kicking any country, especially one of the first to have joined the EU would cause some serious stir in the EU circles. It would bring out a message like "you're welcome, but screw up, and you're done".

Moreover, Greece may not be a very strong country economically, yet geographically it's invaluable. Plus, it has a strong and viable commercial and military navy. Lastly, Greece has special bonds with the East, with countries like Egypt and Israel; it's EU only way to reach out to them.

I wish the EU would kick the UK out, we would be better off on our own!

That may actually be true. Seeing as UK was one of the founders of the EU though, it would be kinda hard to get kicked out



My themeforest portfolio:

http://themeforest.net/user/corethemes/portfolio

LordChris915 on 05 February 2010
routsounmanman said:
LordChris915 said:
routsounmanman said:
kowenicki said:
gamelover2000 said:
kowenicki said:
Dont worry, the Yen will have to be devalued soon, it has to unless Japan want to utterly screw themselves. They have to do something soon, Japans tax take this year wont even meat their own debt payments. They are effectively bankrupt too.

On Europe... expect Portugal, Spain and Italy to follow Greece soon.

It was sooooo obvious that a common monetary policy and common currency couldnt work for such different economies... especially economies propped up by inflows of european cash.


the Euro is still one of the most stable currencies ever.. FAR more stable then the GBP or USD


for now.

they may, and it has been rumpoiured they will, just kick greece out of the EU of course.

Firstly, I don't think that's even possible. Secondly, should US kick California? Of course the US are a nation whereas EU is more of an entity, but, kicking any country, especially one of the first to have joined the EU would cause some serious stir in the EU circles. It would bring out a message like "you're welcome, but screw up, and you're done".

Moreover, Greece may not be a very strong country economically, yet geographically it's invaluable. Plus, it has a strong and viable commercial and military navy. Lastly, Greece has special bonds with the East, with countries like Egypt and Israel; it's EU only way to reach out to them.

I wish the EU would kick the UK out, we would be better off on our own!

That may actually be true. Seeing as UK was one of the founders of the EU though, it would be kinda hard to get kicked out

I have so many reasons for wanting out!

We dont have to follow European standardisation, we can trade with other nations at better rates, we can retake our seat on the WTO, we can have a more active roll in the commonwealth, we save our GDP by not having to contribute to Europe.

But best of all, we can get games at the same time as America because WE SPEAK ENGLISH TOO!!.....in fact we invented it!



justinian on 05 February 2010
LordChris915 said:
routsounmanman said:
LordChris915 said:
routsounmanman said:
kowenicki said:
gamelover2000 said:
kowenicki said:
Dont worry, the Yen will have to be devalued soon, it has to unless Japan want to utterly screw themselves. They have to do something soon, Japans tax take this year wont even meat their own debt payments. They are effectively bankrupt too.

On Europe... expect Portugal, Spain and Italy to follow Greece soon.

It was sooooo obvious that a common monetary policy and common currency couldnt work for such different economies... especially economies propped up by inflows of european cash.


the Euro is still one of the most stable currencies ever.. FAR more stable then the GBP or USD


for now.

they may, and it has been rumpoiured they will, just kick greece out of the EU of course.

Firstly, I don't think that's even possible. Secondly, should US kick California? Of course the US are a nation whereas EU is more of an entity, but, kicking any country, especially one of the first to have joined the EU would cause some serious stir in the EU circles. It would bring out a message like "you're welcome, but screw up, and you're done".

Moreover, Greece may not be a very strong country economically, yet geographically it's invaluable. Plus, it has a strong and viable commercial and military navy. Lastly, Greece has special bonds with the East, with countries like Egypt and Israel; it's EU only way to reach out to them.

I wish the EU would kick the UK out, we would be better off on our own!

That may actually be true. Seeing as UK was one of the founders of the EU though, it would be kinda hard to get kicked out

I have so many reasons for wanting out!

We dont have to follow European standardisation, we can trade with other nations at better rates, we can retake our seat on the WTO, we can have a more active roll in the commonwealth, we save our GDP by not having to contribute to Europe.

But best of all, we can get games at the same time as America because WE SPEAK ENGLISH TOO!!.....in fact we invented it!

That, old chap, is a most excellent post.

BTW English is now only known as that in Western Europe.

In the rest of the world the English language is now known as American.



LordChris915 on 05 February 2010

http://news.bbc.co.uk/1/hi/8204075.stm