At this rate Japan’s economy will never recover-we should take notice
Japan has been in serious economic doledrums for at least two decades now. Their horrible economic policies have done nothing to improve the situation. These are same Keynesian economic policies that the United States has been implementing.
According to Kyle Bass, founder of Hayman Capital, “when you see how Japan has lost 20 years of their prosperity from 1990 to today, you see what happens when a government steps in and runs giant deficits to make up for the private market place pulling back and attempting to deleverage.”
Also Japan is in what John Rubino of DollarCollapse.com calls a “debt trap”. Japan has the third highest public debt to GDP ratio in the world (only behind Zimbabwe and Lebanon).
Interestingly, in the United States about 57% of our debt is held externally. In Japan 6% of their debt is held externally. 94% is held by the people, the pensions, and the life [insurance] companies. This will likely cause societal problems in addition to economic.
Now Standard and Poors is threatening to cut Japan’s credit rating. Thats an issue since Japan intends to further ramp up its borrowing to keep the economy from falling back into deflation.
And I could go on and on. Japan is likely as the Telegraph says pushing the public debt beyond the point of no return.
What is the Central Bank in Japan doing?
Yesterday, the Bank of Japan voted to keep the key interest rate at the unbelievably low 0.1 percent (which its been at since late 2008.
Skyrocketing debt, deficits and unbelievably low interest rates…Sound familiar?
