Japan Default?

Those two words will never come together in a single sentence.

I have to wonder if all the major players have agreed to let their currencies devalue in unison, screwing everyone that saved for retirement but absolving the various governments of their debt. China would be left holding the bag with worthless bonds, so they'd get sucked down with the rest..

That could cause a default all by itself.

5 workers for every 4 retirees. The math just doesn't work.

Hey, I just love these population profile charts....

Also, by 2050 for some reason, there will be an overabundance of 90 year old women, if you are a 90 year old man, you will be in business....

Seriously: the US has exactly the same problem as Japan, but offset by a few years... The way we solved our problem is by opening the borders..... We let 20 million foreigners in, they reproduce, they change the society a bit, but at least it keeps going. That is why "amnesty" or whatever you want to call it, is inevitable.

Japan, being the wonderful little island nation that it is, did not do that. They're still 99 percent Japanese....

Pup-

Being a native, i'm poking everything i can... got to do whats right for the economy!!

I can't imagine Japan could be so screwed... there country seems so perfect? I've heard its like nowhere else because of how clean, on time, and well mannered the Japanese are... I like when George Costanza keeps giving those Japanese TV execs oranges... good episode (The Super Terrific Happy Hour)...

Yes, it is certainly true how high the Japanese debt is. However one big difference is that almost all of that debt is held in the form of bonds that are purchased by Japanese citizens. If the country defaults on its no one outside of Japan looses the cash. Just the Japanese themselves.

The average Japanese family until recently had $250,000 USD equivalent in savings, most of which is held in Government bonds. I have often been amazed that people I know here in Japan buy bonds for such little interest return. But they justify by pointing out that no banks in Japan insure deposits so if their bank goes down they loose everything (And the banks themselves are also paying as little interest). So many see it (rightly or wrongly) to put their money into the government. It is also seen as a patriotic thing to do. Kind of like war bonds but in a time of peace.

It is true what the other poster said about immigration and the resistance against it in Japan. I have lived here for 6 years, but certainly the door is not an easy one to walk through.

Much of that excessive spending is used for stimulus projects (I.e; concrete over a hillside ostensibly for landslide protection) which supports the rural economy. The new government plans to divert those useless projects funds into things like getting the agricultural production back on track. But the problem is 90% of the farmers are over the age of 65 as young people rather take higher paying jobs. Another side to the chronic coming labour shortage.

pup55 says


Dude, if you are a 90 year old man in Japan, you will have a big problem coming (pun fully intended). Even if you are surrounded by 90 year old women.

5-4 worker/retired ratio... I guess those lazy Japanese workers are going to have to work a little harder for a change, LOL!

Look at the trade numbers. http://www.thedailybell.com/578/Japan-S ... uptcy.html

And since 2007 the US has been following the exact
Japanese Monetary Policy of the last 2 decades.

Fool Same Over Expecting Different Results

japan imports 80% ? of its oil