I read in that article that Japan's public debt is 230% of it's GDP. Maybe that's why the japan's birth rate is in decline. They don't want their kids to have to pay off that debt.
Japan's horrifying demographic crash means it should be going through profound deflation. I've never seen wonkish economists take fertility rates into account.
And, to some extent Japan's debt "just" means that old people are putting more money into less risky assets. It's not a problem in and of itself. The demographic crash is the problem, not the debt per se!
I don't know. It seems to me like all this Keynesian stuff works just fine...as long as you don't worry about the future. It's just like how you can be healthy at any weight...as long as you don't get any older.
meh, Japan is supposed to crash for over 25 years now. The national debt is different than other 1st world countries though, because over 90% of that debt is domestic. The government, industry and finance really is one entity.
A lot of things are not looking good for Japan, but I think the US and Europe are going to burn first.
I really like this review of Michael Zielenziger's Shutting Out The Sun, basically saying that every economist this side of the globe has said Japan is fucking up, but it never really seems to happen.
I read in that article that Japan's public debt is 230% of it's GDP. Maybe that's why the japan's birth rate is in decline. They don't want their kids to have to pay off that debt.
ReplyDeleteJapan's horrifying demographic crash means it should be going through profound deflation. I've never seen wonkish economists take fertility rates into account.
ReplyDeleteAnd, to some extent Japan's debt "just" means that old people are putting more money into less risky assets. It's not a problem in and of itself. The demographic crash is the problem, not the debt per se!
http://www.kdramastars.com/articles/54588/20141119/hospital-bill-after-birth.htm
ReplyDeleteI don't know. It seems to me like all this Keynesian stuff works just fine...as long as you don't worry about the future. It's just like how you can be healthy at any weight...as long as you don't get any older.
ReplyDeletemeh, Japan is supposed to crash for over 25 years now. The national debt is different than other 1st world countries though, because over 90% of that debt is domestic. The government, industry and finance really is one entity.
ReplyDeleteA lot of things are not looking good for Japan, but I think the US and Europe are going to burn first.
I really like this review of Michael Zielenziger's Shutting Out The Sun, basically saying that every economist this side of the globe has said Japan is fucking up, but it never really seems to happen.
http://www.hellodamage.com/top/2011/02/03/review-of-shutting-out-the-sun/