All things about the media, marketing, business, Japan and other musings by Mike in Tokyo Rogers.
Monday, April 30, 2012
Morgan Stanley Reports: Japan's Total Debt, Public, Private and Household, is More Than 600% of GDP
At least we're not the UK... And at least Greece isn't the USA.
Zerohedge reports in "We Are Number One!", Or Why At Least Broke Greece Is Not America
The article talks about public debt then continues...
When one adds private financial and household debt, things get truly hilarious, as seen on the following chart also from Morgan Stanley (which unfortunately excludes such critical components of public debt as contingent and NPV of pension and healthcare) which shows why the UK, with its 950% global consolidated debt/GDP, is quite fond of infinite rehypothecation, or the iterational “fractional reserve” creation of credit money from one asset (most likely robo-signed away to someone, unclear quite who: just ask Jon Corzine how fiat money can evaporate when one tries to match it with the “asset” that spawned it), as many times as necessary to pay those record banker bonuses.
It's as I mentioned so many times in the past, folks... In Japan's case, like the rest of the world, our problems of public debt stem from uncontrolled government spending... They can raise taxes to the moon and it won't matter if they do not cut spending.
If you have a can with ten marbles in it, you cannot take out eleven marbles. We need to cut government spending immediately...
2 comments:
Comments must be succinct & relevant to the story. Comments are checked frequently and abusive, rude or profane comments will be deleted. I’m just one of many bloggers who answer questions online and sometimes for the press. I usually handle questions about Japan, marketing or the economy, so in those areas I’m more likely to make sense and less likely to say something really stupid. If I post something here that you find helpful or interesting, that’s wonderful. This is my personal blog. If you don't like what you have read here then, just like when you go into a restaurant or bar that allows smoking, if you don't like it, there's something at the front that has hinges on it and it is called a "door."
Makes me proud to be British. Our debt makes the rest look like amateurs!
ReplyDelete@John, Ha! Ha! Ha! Thanks for the good laugh... After looking at this chart, I needed that!
ReplyDelete