The True Story of Japan

[Politico]

What is their debt-to-GDP ratio again? 250% yet? 300% soon? And how are they ever going to repay it when you consider their aging population?

Anybody who tells me their infrastructure is unbeatable needs to explain the near-meltdowns following the tsunami last year...

[Politico]

What is their debt-to-GDP ratio again? 250% yet? 300% soon? And how are they ever going to repay it...

'debt-to-GDP ratio' never matters when it is in your own currency, Polico.  

Oh yes. I forgot that in opebo's world you can simply erase debt with the stroke of a button without creating inflation. Did Zimbabwe appreciate your consultation?

[Politico]

What is their debt-to-GDP ratio again? 250% yet? 300% soon? And how are they ever going to repay it...

'debt-to-GDP ratio' never matters when it is in your own currency, Polico.  

Oh yes. I forgot that in opebo's world you can simply erase debt with the stroke of a button without creating inflation. Did Zimbabwe appreciate your consultation?

Moderate inflation would solve at least some of Japan's short-to-medium-term economic problems, actually.

Higher than 3% inflation is never productive. Inflation beyond that level simply creates inefficiencies in the short-run by distorting the rationing and allocative functions of prices.

[Politico]

Oh yes. I forgot that in opebo's world you can simply erase debt with the stroke of a button without creating inflation. Did Zimbabwe appreciate your consultation?

Zimbabwe's crisis was caused by a lack of 'hard currency', Politico, which lack was in itself caused by destruction of a certain export-sector.  The second hardest currency in the world after the dollar is the Japanese Yen, and they can't have a shortage of it - they can create as much as they like.

No, Zimbabwe's crisis was essentially caused by conducting the monetary policy you espouse on this forum.

[Politico]

I've seen these per capita GDP analysis's years ago on Japan. While technically accurate lets not forget that their entire economy rests on practically one asset class the JGB which today is essentially worthless and all that waits is for the market to assess it as such.

Yeah, I have wondered for a couple of years why the market has not accepted this yet. Denial can only last so long until reality sets in.

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This I am not so sure about. Italy, in particular, may be in a world of trouble. Funny enough, Italy's saving grace may be their expansive underground economy. I've always admired their distrust of government, at least by European standards.