They don't seem overly concerned by it, one thing I've never fully understood is that the Debt is measured in US currency. Then doesn't that mean the US owns the money the owe to others?
From a world SuperPower to a 3rd world country within a few years, if not one.......Not pretty, AT ALL!!!
America has two options, Stop playing world super power and lick it's wound's for a few decade's. Or go out kicking and screaming clinging on to anything it can on the way down.
Yep and they will just go print some more, while devaluing the currency at the same time to lower the debt they owe to others. They will of course also prop up reserve banks elsewhere in the world to enable subsidiaries to kick their own cans down the road as well . It will all culminate just like the pussy boil that it is and no doubt at such time it will require a ruthless campaign of martial rule to quell the unrest generated by such an unseen circumstance. Life Jim but not as we know it.
They have been doing this for many years now, but what I don't get is why the currency hasn't devalued to worthless yet??
Because everything else is pegged to it, Oil, Pm's, debt, commodity's, industrial's. A person or country can not trade without either meeting the price in U.S equivalent or converting local currency to $U.S. Even if paying with gold the price is based on $U.S .
Japan's debt to GDP is over 200%.. and theyre still around - sure, not as prosperous as they once were, but not a 3rd world economy by any means. Its not the amount of debt that kills countries - its what the money is spent on, and the confidence that it will be repaid. The USA and Japan can print cash to repay their debt.. Greece could not. Japan has been monetising their debt for 30yrs... seems the USA still has some life left in it
Japan will collapse soon do not worry about that. They are already paying a oz gold coin to anyone who buys Japanese bonds. When government interest rate payment doubles in Japan the entire government revenue will be equal with their interest payment only as they represent 50% now. Anyone able to use a calculator should be horrified with Japan.
Yet their system hasnt collapsed ....yet. It shows what some creative accounting & friends/debt in the right places can do
The key word is "yet" Japan reminds me the guy who jumps off the Empire State Building and says how great things are going so far, as he passes the 10th floor
Japan has been totally dependent on their export model to keep things going as they are. In a world where people are spending much less, it looks like the end of the road for Japan. Well, originally they owed it in Gold, but when they started to spend more than they could afford, they basically said they didn't want to pay in gold anymore and if the rest of the world didn't like it, then tough. The world decided to go along with it.
Some counties are more productive than others, BUT Japan 2011 budget was 92.41 trillion yen from the total tax revenue around 41 trillion yen. The difference is more borrowing as servicing existing debt is 22 trillion yen and social security spending is 26.3 trillion yen planed for 2012. Only 2% rise in Japan's interest rates will increase their interest expense by more than 20 trillion yen, and that would exceed total tax revenue. And that is the time we can call Japan BINGO for sure!
The star spangled banner.Aint done yet fellers. What we're watching unfold is engineered, not an accident.
Astronomically speaking we are witnessing is the land of the rising sun turn into a black dwarf and the only question is will the US a turn into red giant for a while before became a black hole.
