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Old 12-11-2008, 08:33 PM
 
18,353 posts, read 16,309,927 times
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What happens to a country with one of the biggest saving rates in the world?
As of 2007 a national debt of 170% of GDP. By comparison in 2007 the US was at 60% GDP. Why? Why does a country with the best savings rate in the world have such a huge public debt?

Since the national currency = national debt + commercial debt, Japan could only grow the money supply though public debt. The average Japanese is better off since more currency in circulation is interest free, not loaned from a bank. The irony is as the saving rate is high, so is the public debt. This is not really debt. Japanese owe Japanese.

Unfortunately the Average American still does not know the national debt is the only interest free money that exists. During depressions increased national debt is new interest free money. Also unfortunate is that most Americans are brainwashed that increased national debt is not in their interest. When it occurs at the expense of commercial credit, it is in their interest. However this is a direct assault on the financial powers and so they will see to it that public debt scare tactics will follow, not to stop bailouts or public works but will stop money from going into the hands of ordinary citizens and those who are robbed blind will cheer it.

For example, unfortunately for the Japanese another way was found to rob them. Instead of lowering taxes to increase the money supply/public debt, public works were used to "stimulate" the economy. Since individual Japanese refused to take on debt, it was spent for them. A lack of money is simple to solve, just put it in the hands of people in proportion to their income. However this does not create the opportunity to steal. The first choice is direct bailouts, however public works will create opportunities to enrich the same industrial complex and so this was done in Japan with not a few useless public works that enriched their industrial and financial complex.

So far bailouts and public works "for the people" , typical.
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Old 11-04-2011, 10:06 PM
 
18,353 posts, read 16,309,927 times
Reputation: 7154
Quote:
Originally Posted by gwynedd1 View Post
What happens to a country with one of the biggest saving rates in the world?
As of 2007 a national debt of 170% of GDP. By comparison in 2007 the US was at 60% GDP. Why? Why does a country with the best savings rate in the world have such a huge public debt?

Since the national currency = national debt + commercial debt, Japan could only grow the money supply though public debt. The average Japanese is better off since more currency in circulation is interest free, not loaned from a bank. The irony is as the saving rate is high, so is the public debt. This is not really debt. Japanese owe Japanese.

Unfortunately the Average American still does not know the national debt is the only interest free money that exists. During depressions increased national debt is new interest free money. Also unfortunate is that most Americans are brainwashed that increased national debt is not in their interest. When it occurs at the expense of commercial credit, it is in their interest. However this is a direct assault on the financial powers and so they will see to it that public debt scare tactics will follow, not to stop bailouts or public works but will stop money from going into the hands of ordinary citizens and those who are robbed blind will cheer it.

For example, unfortunately for the Japanese another way was found to rob them. Instead of lowering taxes to increase the money supply/public debt, public works were used to "stimulate" the economy. Since individual Japanese refused to take on debt, it was spent for them. A lack of money is simple to solve, just put it in the hands of people in proportion to their income. However this does not create the opportunity to steal. The first choice is direct bailouts, however public works will create opportunities to enrich the same industrial complex and so this was done in Japan with not a few useless public works that enriched their industrial and financial complex.

So far bailouts and public works "for the people" , typical.

Bumping this thread next to the new one on Japanese debt to say I told you so.
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