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Japan's net external assets hit record $3 tril as top creditor nation

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For all the clueless "JT economy experts" constantly asking "but where is Japan going to find the cash" for everything Japan does or pledged to do!

-2 ( +4 / -6 )

Yes, indeed, Japan, whose govt suffers from "tattered finances" and its private sector is so dysfunctional and unprofitable.

-1 ( +3 / -4 )

Peeping_TomMay. 23, 2015 - 06:45AM JST

For all the clueless "JT economy experts" constantly asking "but where is Japan going to find the cash" for everything Japan does or pledged to do!

JeffLeeMay. 23, 2015 - 07:03AM JST

Yes, indeed, Japan, whose govt suffers from "tattered finances" and its private sector is so dysfunctional and unprofitable.

Oh pleeaaaaassse... the clueless title belongs somewhere.

70% of those assets are owned by Japanese individuals and 98.7% of those Japanese individuals are the Dankai generation who are now on fixed income, their pensions, and have no intention of departing this mortal coil not having spent most of those assets or leaving their assets to the Japanese government in death duties.

It may have escaped your notice, but from 2013 the Japanese became net spenders for the first time since records began, rather than net savers.

It may also have escaped your attention but a number of Japanese professors have projected that on present BOJ spending, in or around 2017, all the 'wealth' of this country will be invested in Japanese government debt. I don't think the BOJ intends, or even could, pull out of its present QE policy any time soon.

The figures might look good, but they are smoke and mirrors, which can soon change, and will change, very quickly.

Still we can return to our whacky 'but most of the debt is in Japanese Yen' theory and I can draw comfort that I will be heating my house, in the winter of 2017-18, with the toilet paper Yen that the BOJ will be churning out by the forest load.

-1 ( +4 / -5 )

"to our whacky 'but most of the debt is in Japanese Yen' theory"

not "whacky" but an irrefutable truth.. and not a "theory" but an irrefutable truth

Isn't the truth a drag? It always gets in the way your worldview.

"The figures might look good, but they are smoke and mirrors, which can soon change"

They've been that way for a quarter of a century. Not comment needed. LOL.

-2 ( +3 / -5 )

Hopefully by 2017 you will be back to your country? The yen will not need to burn for heating and Japanese will still live far better than 90% of your China heroes. No smoke and mirrors in China, with all that 1-2 dollar average daily rate, innit! Don't ya worry, Japan will live without yer expertise. Quite well actually.

0 ( +0 / -0 )

"The figures might look good, but they are smoke and mirrors"

Smoke and mirrors on assets held overseas, subjected to foreign accounting rules!!!?

Unless you're suggesting the whole world practices "smoke and mirrors" (NOT JUST JAPAN) I fail to see how you're going to come out of this one.

“which can soon change, and will change, very quickly."

If this change, it means the world is in a mess; Japan's assets are overseas!

Keep focused before opening yer mouth.

How long has Japan been in "recession" and the country going to the dogs, unless they accept economic advice from JT armchair experts again?

-2 ( +2 / -4 )

An "official" debt of a quadrillion yen, but external assets of 945 trillion yen (not counting domestic assets) means Japan has some of the best finances of any country.

1 ( +2 / -1 )

"Japan's gross external assets rose 18.5% to 945.27 trillion yen, up for a sixth consecutive year, as the weak yen boosted the appraised value of external assets by 64 trillion yen from the year before, the ministry said."

I guess increase external assets is easy. Just print more money. Does that mean Japan should print more money to devalue yen for greater assets? Before yen's devalued further, Japanese should make their investments outside Japan?

-2 ( +0 / -2 )

"I guess increase external assets is easy. Just print more money.

Where did you learn you accounting practices? China???

Overseas assets mean just that; they are assets located overseas, i.e. in London, New York, Bogota, Rio and Maseru. Assets located throughout the world, yet belonging to a specific country, in this instance Japan.

These assets are valued by the currency of the country in which they are located; similarly its valuation must obey local accounting standards and rules.

All Japan (and any other country holding overseas assets) did was to have the means to invest overseas initially and to continue to manage what they got successfully.

No amount of Yen printed locally will change the Profit and Loss Account and the final Balance sheet of Honda-Swindon.

0 ( +2 / -2 )

Why would the richest country on Earth (Japan), need to devalue its currency? You people need to learn to think outside the box and stop believing in Libertarian nonsense.

-1 ( +0 / -1 )

The value of net assets held by the Japanese government, businesses and individuals exceeded the previous year’s 325 trillion yen

When considering this information in the context of the government's ability to keep it's finances running, the important bit which should not be overlooked is bolded above.

The public debt is that of the Japanese government, not business and individuals. Should the government find itself in a position where it needs to reduce its debt load, then to obtain funds it does have the option of taxing businesses and individuals more, or confiscating those assets held by businesses and individuals (or at least attempting to).

So does this really mean everything is all rosy? It's not good news if you work for or run a business or are an individual with any assets to your name, and not good news for the economy if one believes that higher taxes won't help growth.

Also notable is that 366.86 trillion yen is less than a third of total public debt, which exceeds 1 quadrillion. Even if the government could confiscate all those assets and liquidate them, they'd still be running massive primary balance deficits and still have a whoppingly big debt load, albeit somewhat reduced. Who knows (except Guy!) if that would be enough.

0 ( +1 / -1 )

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