Japan Spirals into Bankruptcy?

"Japan Plunges Into Deep Recession; GDP Shrinks 3.5% Annualized; Japan Current Account Turns Negative First Time in 30 Years; Watch the Yen"

http://globaleconomicanalysis.blogspot.com.au/2012/11/japan-plunges-into-deep-recession-gdp.html

Bug in Search of Windshield

"As my friend John Mauldin suggests, Japan is a bug in search of a windshield. I highly doubt Japan can make it 2022 or even 2017 before it runs into serious issues.

"Actually, Japan has extremely serious issues already, it's just that the market is ignoring them for now. If interest rates rise by a mere 2% or so, interest on the national debt will consume 100% of Japanese tax revenue."
 
The trick for Japan is how to finance its national debt, now at a majorly unsustainable 235% of GDP. Will be interesting...
 
Quote from Klemen:

The trick for Japan is how to finance its national debt, now at a majorly unsustainable 235% of GDP. Will be interesting...
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Wow, you took Mish's words RIGHT out of his mouth.

Quote from Mish's Global Economic Trend Analysis:
The trick for Japan is how to finance its national debt, now at a majorly unsustainable 235% of GDP.
More...

You should at least offer a link when you copy someone word for word.

http://globaleconomicanalysis.blogspot.com/
 
As always some countries are going to suffer big time and the more prudent hardly at all except that there is noone much to export to.
Sweden, Switzerland and a few more didn't squander their resources, then borrow and blow that too.

Many of those leaders responsible for the financial mess have faded away like Prodi, Trichet, Jean Claude Monet, etc. on fat pensions. Some are on big incomes from the UN or the USA .

It will be the people at the bottom who will suffer most when the crunch comes.
 
"Shinzo Abe: I Come to Bury the Yen"
http://www.acting-man.com/?p=20558

"Dollar/yen rises after Japan's Abe calls for bold easing"
http://www.reuters.com/article/2012/11/15/markets-forex-yen-idUST9E8FR02520121115

Nov 15 (Reuters) - The dollar rose to a 6 1/2-month high against the yen after the Japanese opposition leader, whose party leads public opinion polls ahead of a parliamentary election next month and is seen by markets as likely to win, reiterated his call for bold monetary easing.

The dollar rose as high as 80.76 yen, driven mostly by buying by speculative accounts, after Liberal Democratic Party leader Shinzo Abe said he wanted unlimited easing to achieve a price target.

http://en.wikipedia.org/wiki/Shinzo_Abe
 
The " Fiscal Cliff " will start operating on 1st Jan 2013.

Regretably democracy has been caught with it's pants down. The politicians are promising too much just to get elected. The laws of economics apply just as the laws of gravity do too. They can't be ignored for too long as the situation worsens.

It's a busted system. The sooner Washington, Tokyo, London and the rest can understand this, the sooner the solutions can be implemented.
 
Quote from Humpy:

The " Fiscal Cliff " will start operating on 1st Jan 2013.

Regretably democracy has been caught with it's pants down. The politicians are promising too much just to get elected. The laws of economics apply just as the laws of gravity do too. They can't be ignored for too long as the situation worsens.

It's a busted system. The sooner Washington, Tokyo, London and the rest can understand this, the sooner the solutions can be implemented.
More...

The riots in Greece against austerity just show how stupid the general opinion is. Because austerity is probably the only answer. A country defaulting only hurts its friends who foolishly lent them money.
Should the rich ever agree to shoulder more of the debt repayments and not just hide their money in Switzerland etc. for the duration, then progress might start. Trying to squeeze yet more out of the poor is a recipe for violent disorder.
 
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