Surprised that no one here noticed this...

[Filuwaúrdjan]

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http://news.bbc.co.uk/1/hi/business/10290933.stm

Yeah, yeah, yeah. Demarcation and all that. Sorry.

[Gustaf]

Maybe we want to sleep soundly?

[Filuwaúrdjan]

Maybe we want to sleep soundly?

Even Beet?

[Sam Spade]

Well, it's not exactly news for those of us who've been noticing...

We're just waiting for something to actually happen.

[Gustaf]

Maybe we want to sleep soundly?

Even Beet?

I can't speak for him, obviously, but you can't focus on all pending disasters simultaneously.

It should be noted though that Japan's debt is largely domestic which makes it less of a problem (the government could in theory confiscate all that private saving to pay off the public debt).

On the other hand, Japan has huge demopgraphic problem coming up, which makes it much more of a problem.

So they do seem to be a bit screwed.

[Torie]

Japan's problems are mitigated somewhat by the very high savings rate of its populace, which helps it carry more debt without a currency implosion than most countries.

[opebo]

Japan's problems are mitigated somewhat by the very high savings rate of its populace, which helps it carry more debt without a currency implosion than most countries.

Funny you should mention it, but a 'currency implosion' is exactly what Japan needs.

It is hilarious to me that anyone considers Japan's 'debt' to be a problem when at the same time it is bemired in decades of deflation.  Print it, don't 'borrow' it, dunderheads!

[Torie]

Japan's problems are mitigated somewhat by the very high savings rate of its populace, which helps it carry more debt without a currency implosion than most countries.

Funny you should mention it, but a 'currency implosion' is exactly what Japan needs.

It is hilarious to me that anyone considers Japan's 'debt' to be a problem when at the same time it is bemired in decades of deflation.  Print it, don't 'borrow' it, dunderheads!

Why do you think Japan was so dumb as to not take your advice, and effect this seemingly painless fix which you suggest of just making it all go away by printing money to buy back their debt Opebo?

[opebo]

Why do you think Japan was so dumb as to not take your advice, and effect this seemingly painless fix which you suggest of just making it all go away by printing money to buy back their debt Opebo?

I don't know if 'dumb' is the right word.  But falling prices and debt both have the same solution.

[Torie]

Why do you think Japan was so dumb as to not take your advice, and effect this seemingly painless fix which you suggest of just making it all go away by printing money to buy back their debt Opebo?

I don't know if 'dumb' is the right word.  But falling prices and debt both have the same solution.

Well it is time for the next question then. What do you think would happen Opebo to the cost of carrying the Japanese debt if the government substantially expanded the money supply?

And yes, you guessed it, I am weaving a bit of web here, like a spider. 

[Queen Mum Inks.LWC]

Well, it's not exactly news for those of us who've been noticing...

We're just waiting for something to actually happen.

Yeah - this has kinda been something in the works for a while.  It's not secret that they're "at risk for collapse".

[Beet]

Maybe we want to sleep soundly?

Even Beet?

Japan is in huge trouble, and it could blow up at any moment. I think I've posted at least one or two threads about Japan. The thing is that the yen is still considered a haven currency and that probably has something to do with the fact that Japan's debt is yen denominated and they still run a large current account surplus in normal times.

[opebo]

Well it is time for the next question then. What do you think would happen Opebo to the cost of carrying the Japanese debt if the government substantially expanded the money supply?

Nothing would happen Torie, nothing at all.  Because there is 'room' for it, plenty of room.

[Gustaf]

Japan invented the term quantitative easing, but it didn't work. That's sort of why they have so much debt.

[opebo]

Japan invented the term quantitative easing, but it didn't work. That's sort of why they have so much debt.

It isn't quantitative easing if you 'owe' it.  You're supposed to simply print it and give it away.  Not borrow it.

An example of quantitative easing which wouldn't do any stimulation would be to simply 'create' one trillion dollars every year by having someone type 1,000,000,000,000 into a computer at the Federal Reserve, then spend the money on buying Treasuries.  Net result - less debt, same economy.

If you do the same typing job but then distribute it in new accounts set up for all poors, depositing say $1,000 or $2,000 per month, they'll spend every dime.  Net result - no new debt, but higher demand, better capacity usage, and faster growth.

[Free Trade is managed by the invisible hand.]

Japan invented the term quantitative easing, but it didn't work. That's sort of why they have so much debt.

Japan hesitated for a about a year or so to lower interest rates and essentially do anything about their problem, while we on the other hand were quicker to respond.

[phk]

Two things you can't un

1.) Pregnant woman.
2.) Japan's economy.

[opebo]

So why would quantitative easing create debt?