Japan has more debt than USA and Europe (percentage, creditors, companies)
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Tired of listening about how bad a state the economy is in - Japan has huge amounts of debt much more as percentage of GDP than the US, European Countries including the PIGS and the UK/Ireland.
But they still have some of the top companies in the world toyota, nissan
Suzuki, Mazda, Mitsubishi, Subaru - they have shipbuilding, aerospace industry and all your electronics companies Nintendo Panasonic, Toshiba etc
All with a lack of internal resources compared the US and Europe e.g oil, gas and much less space, and lots of people packed in.
How come the Japanese can have much higher levels of debt, and still be one of the best economies in the world. Therefore doesn't it prove that its the strength of the corporations in each country that is the economic strength of the country - therefore all the news about the US and Europe having unsustainable debt levels is wrong we can go increasing the debt for years to come.
Tired of listening about how bad a state the economy is in - Japan has huge amounts of debt much more as percentage of GDP than the US, European Countries including the PIGS and the UK/Ireland.
But they still have some of the top companies in the world toyota, nissan
Suzuki, Mazda, Mitsubishi, Subaru - they have shipbuilding, aerospace industry and all your electronics companies Nintendo Panasonic, Toshiba etc
All with a lack of internal resources compared the US and Europe e.g oil, gas and much less space, and lots of people packed in.
How come the Japanese can have much higher levels of debt, and still be one of the best economies in the world. Therefore doesn't it prove that its the strength of the corporations in each country that is the economic strength of the country - therefore all the news about the US and Europe having unsustainable debt levels is wrong we can go increasing the debt for years to come.
Umm, who does Japan owe that debt to? Get back to me after you find out the truth.
Here is the answer.
How many times do ya need to tell people?
The debt is owed to themselves, and its the MONEY SUPPLY. If they were to "pay off" the debt they would pay off their OWN MONEY and extinguish their MONEY. This would cause a depression. The reason why their public debt ratio is so high is because the entire economy is measured in total and the total amount of yen created at a debt. Since Japanese don't take on debt, it means a lot more money is circulating without having to pay banks interest. All da MONEY is IOUs. There is no excuse not to know what interest free money is heading into 2012 if one has any interest in economics.
The biggest issue I have with the U.S. economy is the amount of consumer debt. This will continue to strangle the economy, because it strangles purchasing power. Our economy was driven on consumer debt and spending practices, and people just don't have the stomach for it anymore. This was not so much the problem in Japan, but I feel our position here in the States will be much worse. Aside from this, Japan's economy is certainly not strong, they have been going through a 20 year recession. And yes, we have followed in their footsteps, making the same mistakes. If only somebody had brains enough to pick up a history book and digest the material
What kind of nonsense statement is that? Debt matters greatly. Just because Debtors' Prisons have been abolished doesn't mean that debt is less onerous now than before.
Debt shackles personal finances. Someone who is ethical and responsible aims to pay off their debts and thus feels compelled to work hard, sometimes at jobs that do not interest them. Credit scores matter greatly when applying for further credit, such as a mortgage.
Debt shackles company finances. Companies can use debt to increase income, but must make those interest payments before rewarding their shareholders. Creditors come first in line.
Debt shackles national finances. Countries that have debt are somewhat restricted in their policies towards creditor nations. There is also the temptation to devalue the currency in order to pay off the debt. This greatly harms those on fixed incomes, especially retirees who cannot go back to work.
You present the type of weak-minded, socialist thinking that has gotten our country into trouble. That we can't wait to get rid of The Socialist-in-Chief from the White House is a given.
Remind me not to lend you any money. Oh wait; don't bother.
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