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View Diary: Don't Cry for Greece, Argentina (87 comments)

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  •  The other problem. (2+ / 0-)
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    Sparhawk, randomfacts

    Japan funds its debt internally. Its people are savers and they lend to the government. Japan does not have to access international bond markets. ... or at least it hasn't had to ... but that is now changing as demographics start to work against it. Japan is in for a world of hurt over the next couple of years.

    Too much debt will always get you into trouble. It may not happen right away, but it will happen.

    "I can live with doubt and uncertainty and not knowing. I think it's much more interesting to live not knowing than to have answers which might be wrong". Feynman

    by taonow on Fri Nov 18, 2011 at 04:12:01 AM PST

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    •  In the EU (0+ / 0-)
      Japan funds its debt internally. Its people are savers and they lend to the government.

      at least the countries I've lived in or studied, made it a policy to discourage savings being invested in Public debt.
      Treasuries were not even sold to individual investors and bonds paid less than 50% of what governments were willing to pay foreign capitals.
      The banks were not willing to underwrite these operations because their commissions were much lower and were happy to "invest" the savings left to them as deposits in high-yielding junk which obviously proved to be toxic and caused this meltdown in the first place.

    •  That is true (0+ / 0-)

      Japan has a big demographic problem. I agree that they have to be wary of their debt level and start adjusting as soon as possible. The factors I mentioned give them more time than Europe has,but it does not give them forever. Neither does the US have forever.

      "It is, it seems, politically impossible to organize expenditure on the scale necessary to prove my case -- except in war conditions."--JM Keynes, 1940

      by randomfacts on Fri Nov 18, 2011 at 05:07:21 PM PST

      [ Parent ]

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