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Japan's gov't debt swells to record Y1,071 tril as of March 31

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The amount owed per person came to approximately 8.45 million yen,

I'll take mine now, thank you.

"How deep does the hole go Alice Abe?"

3 ( +6 / -3 )

"Let's ignore it and keep wasting money as usual" Abe was heard to say.

3 ( +8 / -5 )

Japan's gov't debt swells to record Y1,071 tril as of March 31

Credit where credit's due...Abenomics?! Keep counting 'missed' arrows !

3 ( +6 / -3 )

The way Abe gives away money, it's not really surprising, is it?

3 ( +8 / -5 )

If there's a big deficit in one place, then there must of an equivalent surplus elsewhere. In this case, it's in the private sector. The solution is easy: take money away from companies and hand it back to the government. And/or force the companies to disburse more of their profits to their workers.

Sounds like a plan, eh? given the record profits they've been earning.

2 ( +6 / -4 )

Yet the average citizen is, apparently, satisfied with Abe & Co...

3 ( +6 / -3 )

You don't hold the earth's largest debt by nation instantly.

The LDP dug this abyss one pail at a time. And we didn't make them stop.

6 ( +8 / -2 )

What JeffLee said

0 ( +4 / -4 )

Nobody wants this debt to be repaid. Too many people/groups who own Japanese government bonds need to collect the interest from now until forever. Think of the benefits Japan gets from the billions of dollars paid as interest on the US debt Japan owns. Better schools, hospitals, etc. Thank you USA! Most Japanese government debt is owned by Japanese, so the interest payouts stay here in Japan to benefit Japan.

3 ( +4 / -1 )

Nothing to see here people, move along.

-2 ( +4 / -6 )

Apparently the average Japanese citizen is happy to be indebted to a new high record as they continue to support Abe & LDP for more.

4 ( +7 / -3 )

Tempting the population with financial eases while quietly changing the constitution!:( Just like a certain guy named Hitler did in the wake of WWll! Its like Abes saying "Come closer, don`t be frightened my fellowers, I will bring an end to the pacifistic guidance our country has endured for too long"!

Without the pacifism, Japan would`ve never achieved their economic boom during the 1980-s and 90-s. We clearly see what is happening to the economy after postponing food tax numerous times and increasing defense expenditures continuously since "he" took power in 2012!! This "Abenomics" is just a an economic delusion of financial stability and continous growth, when the debt is still rising! The aftermath might become as devestating as the "lost decade" if the financial institutions demand their money back at any moment! Luckily for Abe, he has borrowed money from Japanese institutions.

3 ( +5 / -2 )

The Bank of Japan holds Y380 trillion of this debt. Why buy something that yields almost nothing when your stated aim is 2% inflation?

You'd be daft (like BOJ boss Kuroda) to keep a lot of Yen in savings or bonds. Buy tangible assets instead (it's what the politicians do). Then, when the government eventually brings in the "new Yen" you won't lose out.

2 ( +2 / -0 )

So it has now reached the one quadrillion mark (which doesn't sound much better than 1000 trillion).

5 ( +5 / -0 )

Hi Scrote, In part, keeping a lid on bond yields.  

Japan Government Bond 10Y....

http://www.tradingeconomics.com/japan/government-bond-yield

http://www.mof.go.jp/english/jgbs/

1 ( +1 / -0 )

"debt" is a misleading term when most of the money owed is to yourself!

-1 ( +2 / -3 )

It's not too big an issue, the government's aim is to inflate this debt away anyway. Plus no one expects even a tenth of this to be paid back ever

1 ( +2 / -1 )

Ah, the good old trusty third arrow. Never fails.

1 ( +4 / -3 )

The amount owed per person came to approximately 8.45 million yen, based on Japan's estimated population of 126.79 million as of April 1.

This means every man, woman and child needs to work two to four years full time and keep nothing of their income. And it will become worse as more people stop working.

This is the kicker, but I wonder what percentage of GDP that is. Last statistic I can recall was from about 3 years ago when it was 246%.

By the way, Germany finished paying back its World War I reparations debt in about 2004 apparently. If anyone knows their economic history, that all started with some pretty archaic anti-Keynesian non-debt public finance principles. Switch to modern Japan, paying some or all of the increasingly scary public debt seems common sense, but I don't see that it is going to happen. I think that we should expect more if the same in extremis

good LUUCK! Mr Abe and friends!

0 ( +3 / -3 )

If there's a big deficit in one place, then there must of an equivalent surplus elsewhere. In this case, it's in the private sector. The solution is easy: take money away from companies and hand it back to the government. And/or force the companies to disburse more of their profits to their workers.

Let's say for a moment that your argument is accurate for a moment here;

How do you propose "taking money" from corporations without throwing the entire country into financial chaos?

What you are suggesting is a totalitarian society, and Japan would end up being the next North Korea.

3 ( +5 / -2 )

Sooner or later, the chickens will be coming home to roost. When this happens. god help us all.  Anyone who is interested on reading more can search youtube for kyle bass japan.

-1 ( +3 / -4 )

I understand that if you net off the governments assets, then the debt to GDP ratio is more like 100%, which is like the US. Still not great. But the government prefers the 250%. The government privatized lots of government owned businesses like NR (formerly JNR国鉄), salt, tobacco, etc, but still owns a 51% stake in each.

1 ( +2 / -1 )

reflecting increased spending on social security due to the graying Japanese society.

Not to mention increased spending on armaments, Olympics, maglev trains, and other completely unnecessary toys.

0 ( +2 / -2 )

there must of an equivalent surplus elsewhere. In this case, it's in the private sector.

It ought to be noted that the private sector includes all of us who are resident in Japan for taxation purposes. This is why the article bothers to mention that the debt is equivalent to 8 million yen per each resident of Japan.

The solution is easy: take money away from companies and hand it back to the government.

This is no solution. The government is racking up 30+ trillion yen in additional debts every year. Confiscating wealth from the private sector to make a dent in the 1.07 quaddrillion of existing debt doesn't resolve that at all. The situation continues to be unsustainable. Consoling ourselves that the problem can be kicked down the road a little further is gutless and makes the eventually consequences even more dire.

And/or force the companies to disburse more of their profits to their workers.

This is precisely the wrong way to contemplate addressing this unsustainable mess.

Companies are collections of people who are resident in Japan for taxation purposes, besides foreign shareholders. And one would be dreaming if one thought that foreign shareholders would sit back and do nothing if the government takes measures that diminishes the value of those business of which they own a stake in. This would precipitate a crash in the value of the already terribly underperforming Japanese stock market.

Sounds like a plan, eh? 

A plan for Venezuela perhaps.

The true solution consists of a combination of (1) expenditure reforms to eliminate the financial deficit (and create a surplus) (2) sales of whatever public assets possible to pay down the exisiting debts (3) some degree of tax reform potentially if the measures in (1) and (2) are insufficient and (4) true "third arrow" reforms to enable higher rates of economic growth in this stagnating country.

2 ( +3 / -1 )

@JeffLee

"Take money away from the companies and hand it back to the government"...

Dude that's a solution? That's a communist solution, and it would only work in a non corrupt government. I'm sure half of the surplus would be in the government officials net worth someplace buried away don't you think?

3 ( +4 / -1 )

Yet they continue to gamble with the pension funds and continue to give billions to other counties. Now they want to build a military......more spending. If they continue down this path ........ don't even want to think about it.

-1 ( +1 / -2 )

@JeffLee "The solution is easy: take money away from companies and hand it back to the government. And/or force the companies to disburse more of their profits to their workers."

Only a thief would think like that. Lazy guy out of money says "easy I'll just steal from my productive neighbor...." Maybe you can flesh out how Japan seems to be the only country in the world in which the government can spend without care and not collapse the currency. I say a reckoning is coming once the old geezers start spending their cash in the bank and realize the bank does not have cash, only JGBs.

1 ( +2 / -1 )

BOJ, especially Kuroda has been supporting the ill-discipline of MOF & the government wasteful & big government out of control spending habit. This is a clear indirect way of monetizing the debts, as BOJ bonds purchased accumulated to north of 300 trillions yen and growing rapidly. What is happening is a steady erosion and transfer of purchasing power and money from Japanese savers & consumers to debt spending of MOF via the BOJ action. Accounting-wise everything will be balanced, as accounting doctrine is left side entry must have a right side entrance. But substance-wise is a hidden transfer of wealth from savers to government. That's the reason why savers are getting zero interest and sometimes negative interest if costs were to be added. And when Kuroda real inflation were to hit 2%, then Japanese savers & consumers purchasing power will exponentially be devastated. Pray that don't happen soon. If not there will suddenly be lots of very poor "middle-income" families & retirees in Japan. Kuroda & MOF are still enjoying the best sides of their policies high stock prices, Olympics spending, etc), the adverse sides will surely show up in due time. Say sayonara to tranquil Japan....economically, socially & politically when inflation is 2% and higher.

3 ( +4 / -1 )

By the way, 1,000 trillion is called a quadrillion. They owe so much money to the people of Japan, but couldn't buy a dictionary?

0 ( +2 / -2 )

Only way they pay this back is by "monetising" it - yen at 200 to the dollar sometime in the next few years.

-2 ( +1 / -3 )

This is a good news for Japanese people. Due to macro economics rules, the government net debt equals the net surplus in the private sector. The greater the government debt is, the richer the people are. We do not live under the Gold Standard system, in which the amount of debt must be within the amount of gold in the country. We do not need to worry about the amount of government debt, which can easily be repaid by printing money.

The ideal situation for people is (1) the amount of government debt is huge, which is balanced by the equally huge surplus in the private sector, (2) the repayment of government debt is done by printing money, which BoJ has been doing for years, and (3) there is no prospect of inflation. All three conditions are satisfied in Japan. What is better?

1 ( +5 / -4 )

It is futile to print money to directly service debt, simply because it will not increase wealth relative to basic coat of living. The more money the BOJ prints, so the costs to goods and services would increase accordingly, supply and demand, without a relative increasing in production, what is left is hyper inflation.

Have credit card, over spend, will a card company except 10,000 yen photocopies?       

The BOJ QE increased exchange-traded funds purchases, as well as Japanese government bonds. This will in effect stall short term rates on 10-year Japan government bonds. Yield values will effectively remain close to zero. All to maintain what is an illusion of solvency, sooner or later taxes will have to rise.

-3 ( +1 / -4 )

itsonlyrocknroll Today 02:03 pm JST

The more money the BOJ prints, so the costs to goods and services would increase accordingly, supply and demand, without a relative increasing in production, what is left is hyper inflation.

The fallacy of your logic is painfully clear, when you look at the economic conditions in Japan.

1 ( +5 / -4 )

The BoJ is buying most government debt today and can print more and inflate away at a later date. Plus none of this ever needs to be repaid anyway, so there is no issue here. Actually it's better for the government to spend more now considering they are aiming for higher inflation in future

-1 ( +3 / -4 )

@CH3CHO

It is refreshing to learn that someone else on this board understands how public finance works.

-3 ( +2 / -5 )

CH3CHO, Any governments monetary/fiscal policy must be balanced and stable, reflecting business levels of productivity. My company products and services costs rise in reflection to the value of the yen. BoJ is unable to forecast a date when it's stimulative monetary policy will be eased. This policy is there to cap 10 year bond yields at zero, so putting downward pressure on the yen.

Also the purchasing power of my staff salaries follow supermarket shelf prices. Frankly the public only believes inflation is real when inflation directly effects their standard of living. The BoJ will likely suffer significant losses on bonds purchased at lower yields if rates were to rise. In a global economy all countries are dependent on this principal.

Export are vital to the Japan economy. Government and Boj monetary and fiscal policy is vital and is explained in Japan's March current account surplus beats forecasts thread whether my logic makes sense or not.

Sovereign debt has to be finance in accordance to a clear set of rules . Commitments to governance were made at  g20 summit 2017 any other suggestion, direct financing, would be in direct contravention of the agreed three pillars, resilience, responsibility, and sustainability.

0 ( +2 / -2 )

Yet they continue to gamble with the pension funds and continue to give billions to other counties

Agree about giving money away to other countries, but quaddrillion debts or not, the current pension scam, err, scheme, is unsustainable whether or not the money is "gambled" in the stock market. (My personal pension money is invested in foreign stock markets and even if it all goes down 75% in value I'd hold on, and in fact buy buy buy much more should that be the case. Short term losses are nothing to worry about.)

The pension fund itself only contributes about 10% to pension payouts. The other 90% comes from pension premiums paid by the current working population. E.g. the current pension system is a "pay-as-you-go" style. It is totally unfit for Japan's demographics, and therefore work to phase out it should begin immediately (never too late). It should be replaced it with a system that is fully funded and thus sustainable, and thus confidence inspiring for everyone. 

One of the things that ails Japan is that many are fearful for the future because the government they rely on is so utterly irresponsible. This must be particularly acute for those on low incomes.

But if the government would kill the existing scheme and replace it with a suitable one, that would be a huge confidence boost for people, not to mention helping to reduce the budget deficit overtime.

2 ( +2 / -0 )

We do not need to worry about the amount of government debt, which can easily be repaid by printing money.

Quite true. 

We just need to worry about Venezuela-style hyper-inflation instead.

All this fantasy about the debt not mattering misses the plain reality that lots of people do not buy this claptrap, and that in itself is extremely significant.

Honestly, there is nothing wrong with having hardly any debts. Look at Estonia, very low. Look at New Zealand, Australia - higher levels of debt but still far lower than in Japan and the US - and their economies do not suffer as a result.

there is no prospect of inflation.

That's what they said in the 1930's. The money printer-in-chief who was supposed to turn off the spigots before things blew up was assasinated, and the money printing continued.

Good luck if you have confidence in central planning.

0 ( +1 / -1 )

Commitments undertaken by the G20 Finance Ministers, and Central Bank Governors in Germany are clear. If there is any doubt, please feel free to browse through the communiqué. A full .PDF is provided for the economic insomniacs.......

With a view to ensuring debt sustainability, we welcome Operational Guidelines for Sustainable Financing reflecting responsibilities of borrowers and lenders.

G20 Finance Ministers and Central Bank Governors March 18, 2017, Baden Baden

http://www.g20.utoronto.ca/2017/170318-finance-en.html

0 ( +0 / -0 )

agree that this will never be repaid in the way that the original "investors" intended.   They might get 100% od their capital back but the value of the yen will be way lower on PP as well as against other (similarly manipulated) currencies.

0 ( +2 / -2 )

That's what they said in the 1930's. 

Apples and oranges. this article is about public fiscal debt. The 1930s was a depression caused by private debt.

It was caused after a stock market meltdown from unsustainable and excessive capital investment by corporations, compounded by concentration of wealth by irresponsible super rich individuals and extremely lax banking regulations, ie, The depression originated in the private sector, not the govt.

True, the Fed made policy mistakes when trying to fix the mess created by the commercial banks and corporations. But blaming the Fed for the depression is like blaming the police for a spate of bank robberies and not the robbers.

1 ( +3 / -2 )

fxgai Today 03:56 pm JST

there is no prospect of inflation.

That's what they said in the 1930's.

During 1930's, Gold Standard was the foundation of monetary policy. That means they cannot print money more than they have gold at the central bank. That, in tern, means government debt cannot be repaid just by printing money.

Now, Gold Standard is gone, and central banks can print money as much as they want. We live in a world totally different from that in 1930's.

Of course, it is not true in Euro Zone, where the central banks cannot print money freely, and where they have all kinds of problems concerning government debt.

0 ( +3 / -3 )

It would be helpful perhaps to understand the term debt monetization.

I think this is a understandable explanation with example effect to the money supply and interest rates.

http://economistsview.typepad.com/economistsview/2005/09/what_is_debt_mo.html

0 ( +1 / -1 )

Apples and oranges. this article is about public fiscal debt. The 1930s

I'm talking 1930s Japan, not whatever happened in the US. (Was a central planner money printer assassinated there too?)

The money printing in 1930s Japan was used to pay for exhorbitant government expenditures and it was unsustainable, no real way to pay for it. The eventual result was very nasty levels of inflation.

In 2010s Japan the money is blown away on pensions for everyone including the rich, a big public health care system, and other stuff, and a no signs of it being paid for ever. An eventual 'result' will hopefully not occur too soon, but hope (nor willful ignorance) is not my plan. One way or another the problem will be resolved but it won't be fun for many.

0 ( +1 / -1 )

Japan the money is blown away on pensions for everyone including the rich, a big public health care system, and other stuff, 

"Blown away"? LOL. The bulk of government spending ends up in the hands of the private sector, ie, corporations, as income. What do pensioners spend their pensions on? Food, for one. Who distributes and sells the food? Corporations. Who constructs hospital buildings and sells expensive medical equipment to the healthcare system? Private corporations.

When you cut government spending, you take this income away from the private sector and retain it in the public sector. That's how to balance the budget. Transferring money out of private business and giving it back to the govt is actually what you want, even though you don't realize it.

0 ( +1 / -1 )

Government spending is tax payers money. My company receives little revenue from the government, some tax perks for investment and training programs. However the business provides income for 90 staff here in Japan and over 250 in the UK. Both the business and staff pay various tax's and welfare and social contributions. Even yen/penny is earned, and little or no say on how or when the government chooses to waste it or not.

0 ( +2 / -2 )

Japan the money is blown away on pensions for everyone including the rich, a big public health care system, and other stuff, 

What kind of sick country spends its money on taking care of it's people. It's absolutely disgusting. They should be leaving people to die in the streets like the 'good' countries do.

-1 ( +2 / -3 )

Economic policy includes measures that will require government to cut as well as raise spending. Flexibility means there are various measures to fund spending commitments. Borrowing vast sums over decades will eventually become the burden for future generations to have to pay back.

1 ( +1 / -0 )

itsonlyrocknroll Today 08:27 am JST

Government spending is tax payers money.

Tax is less than half of government revenue. It is not taxpayers money.

If we have a rare opportunity to finance government just by printing money without causing inflation, why do not we utilize it? Japan has been utilizing the rare opportunity for about 2 decades.

2 ( +3 / -1 )

Hi CH3CHO, I don't think I am going to be able to convince you, it would be presumptuous to state my opinion as fact.  

What I can do, is provide you with some qualified research, so you can decide for yourself.

I am sure you have a family here, as I do, and some of those family members are elderly and draw a pension. Those pensioners livelihoods, healthcare and well being must not be left at the mercy of some experimental monetary/fiscal theoretical economic la la land courtesy of a get well tomorrow printing press. Debts have to be paid back.          

Greece is the end game for what sovereign default actually looks like. Although Japan debt dynamics/creditors explain why the Government of Japan/BoJ has been able to accumulate such numbers 934.90 trillion yen in government bonds, 54.42 trillion yen in borrowing from financial institutions, and 82.24 trillion yen in financing bills or short-term government notes of up to one year. This debt is accumulative government spending overhang.

Borrowing where tax revenues have been unable to bridge the gap. Either growth or taxes will have to reduce these figures at some point.  

The successive Governments and the BoJ has not been directly monetization debt (directly money printing)...

The two papers below, the first a BoJ 2005 working paper, the second brings the Boj secondary market stimulus programme up to date, no central bank or government has ever embarked on such a huge QE, QQE operation to date.   

Japan’s Open Market Operations under the Quantitative Easing Policy..... Bank of Japan Working Paper Series 2005

https://www.ecb.europa.eu/events/pdf/conferences/mpimp/maeda.pdf

The Japanese Experience with QE and QQE.......John Greenwood

https://object.cato.org/sites/cato.org/files/serials/files/cato-journal/2017/2/cj-v37n1-2.pdf

Below are the current auction programmes up until may 11th..everything you need to know about debt, tax, budget, plus a section on finical system stabilization is available.

http://www.mof.go.jp/english/

0 ( +1 / -1 )

itsonlyrocknroll Today 03:56 pm JST

Greece is the end game for what sovereign default actually looks like.

Greece is in Euro Zone, where the central bank cannot print money freely. So, Greece cannot repay government debt by printing money. Japan, on the other hand, can print money freely and can pay government debt by printing money. This is the big difference.

Although Japan debt dynamics/creditors explain why the Government of Japan/BoJ has been able to accumulate such numbers 934.90 trillion yen in government bonds, 54.42 trillion yen in borrowing from financial institutions, and 82.24 trillion yen in financing bills or short-term government notes of up to one year. This debt is accumulative government spending overhang.

Borrowing where tax revenues have been unable to bridge the gap. Either growth or taxes will have to reduce these figures at some point. 

No, we do not need to reduce the figures. Do you think US government, or any government, should reduce the debt amount to, say that of 100 years ago? Of course not. In addition, since the net government debt equals net surplus in private sector, if the net debt of government goes down to zero, the net surplus in private sector also goes down to zero. Who wants to see zero surplus in private sector? We live in a zero-sum world. We cannot have a situation where both people and the government have surplus.

1 ( +2 / -1 )

Hi, CH3CHO, Net government debt equals net surplus in private sector.....

Does this explain or describe how a fiscal and monetary system operates?....Broken down into sectors. private, public, foreign in relation to the ratio of expenditure/consumption.

How does the each sector save or invest, and does the statement accurately reflect reality. To fully understand the monetary system, private investment needs to be interpreted and the role of a central bank as an essential facilitator. The true driver of growth in the economy is not the government but the private sector. This private sector investment is the backbone of financial wealth creation. The net save element is derived or equal to the size of a government deficit. Does this in effect ignore that investment drives economic growth?

Has BoJ/Government of Japan printed money? If so when? How does this money printing coincide with Japan QE and QQE? Which BoJ governor and Government approved this?. Under the direction and agreement of G20, IMF, and OECD?

0 ( +1 / -1 )

Japan & Japanese will be impoverished when below 2 factors are met?

Net debts of government plus that of BOJ JGB holdings exceed that of net savings of all private sector (households & corporations)

Japan in a structural net current account deficit.

Watch, it will come because of the demographics.

Greece debt crisis will be considered child play then. Kyle Bass was still way too early.

2 ( +2 / -0 )

Much to address....

The bulk of government spending ends up in the hands of the private sector

People spend their own money more cost-effectively than they do when spending other people's money.

When you cut government spending, you take this income away from the private sector and retain it in the public sector.

Spending money on public money on useless leaches in the private sector can end, there is no problem with that - make my day. If a "business" can only stay in business thanks to government money then it need not exist. We would collectively be far better off without such wastes of our limited productive resources. If not being squandered in low-to-no value activities funded by our own taxes, those resources would otherwise be available for utilization in more meaningful, higher value activities.

In this way, fixing the government's debt problem would boost the productivity of the economy over time.

What kind of sick country spends its money on taking care of it's people.

See above. It is dumb of the government to pay out huge pensions to rich people, who do not need the money, racking up future debts in order to do so. Dumb in the sense of what is good for the country (as opposed to the politicians trying to get elected). THAT is a sick country, and THAT is Japan (and other places no doubt).

A healthy country has a government that focuses its limited resources on ensuring that the needy are provided for sufficiently, and letting everyone else go about their business to the extent possible. Masayoshi Son and other rich people do not need a single yen from the rest of us tax payers to prevent them from dying in the streets, as suggested. They are adults, as are most of us.

Reforming spending to reduce expenditures implies that people who are perfectly capable of taking care of themselves, are left to do so. And the more people are left to take care of themselves under their own sails, the better they will spend their share of the money. This means the government spends less and therefore waste is reduced, and it leaves proportionally more money for the needy. This is a truly caring society.

Japan has been utilizing the rare opportunity for about 2 decades.

Party on dude.

Japan ... can print money freely and can pay government debt by printing money.

It's a difference to Greece but being able to print money doesn't mean there are no negative consequences or risks of such behaviour, as Japan itself experienced in the past. But one thing we have learned from history is that people do not learn from history...

 Do you think US government, or any government, should reduce the debt amount to, say that of 100 years ago? Of course not.

Why not? Having huge public debts is no prequisite for greatness, having low public debts doesn't prevent it.

Who wants to see zero surplus in private sector? 

If borrowers and lenders in the private sector are matched, there is no issue whatsoever with a net zero surplus in the private sector. 

We live in a zero-sum world. We cannot have a situation where both people and the government have surplus.

The suggestion is not that the government ought be accumulating profits, but that it ought not be accumulating such massive debts, for no good reason at all, and that its inefficient use of our resources is holding us back. 

There is no reason that Japan should continue as it has been doing, and the fact that it's undergone a lost quarter of the century while holding the dubious honour of most indebted big nation in the world is reason to suggest that it shouldn't.

0 ( +1 / -1 )

"Does this in effect ignore that investment drives economic growth?"

It doesn't. Consumption generates about 60% of GDP. Consumption (demand) drives growth more than anything on the supply side.

"My company receives little revenue from the government,"

Maybe not directly. But you need to ask yourself where all the yen in the pockets of your customers came from in the first place.

-2 ( +0 / -2 )

Hi JeffLee,

A sector based analysis framework defines the relationship between private surplus and government deficits. (S = I + (S – I), look at me Nobel prizewinning winning economic Yoda's won't shut up about theorizing the meaning.

The practical reality is the upper six form, or entry level year algebraic finance and economics module debate to understanding sector financial balances and plot derivation of national income accounting. 

However the reality, in the here and now, is finding front/center political and economic consensus at the G7 finance ministers/central bankers two day meeting in Italy.  President Trump administration has policy proposals that could stall or even reverse the march of globalization in trade and commerce. At least in scale.

Many question Donald Trump moral fortitude with good reason, but President Trump has a valid point where rampant globalization is concerned and the entities that benefit.

My business is dependent on be able to seamlessly deliver products and services to all G7 countries. So the consumption sector variable is diverse. The supply driving growth model is reliant on the principal of open economy.

My humble opinion is the simple principal, I borrowed and persuaded investors to lead me money. I presented a business model promising to reward their belief and confidence with profit. I have to deliver. Now why can't we demand the same from our politicians and government? I think that is a just and fair question to ask.

0 ( +1 / -1 )

Consumption (demand) drives growth more than anything on the supply side.

Not in reality (or even logically.) Lots of demand in Venezuela for food hasn't resulted in lots of food being supplied.

0 ( +1 / -1 )

itsonlyrocknroll May 12 08:30 pm JST

Has BoJ/Government of Japan printed money? If so when?

Look at the banknotes in your wallet, if you have any.

0 ( +0 / -0 )

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