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Japan's debt-funding costs to hit Y25.3 trillion next year

9 Comments
By Takaya Yamaguchi

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9 Comments
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Easy to not be able to make the repayments. The money is made by the federal reserve which is as federal as federal express freight company. Meaning it is not government. The fed issues the money on govt guarantees. The govt requests the money as with guarantees - bonds from whomever is willing to invest for an interest return. At present is is mostly china buying govt debt unlike Japan whose debt is domestically owned. When china stops buying the debt they cannot issue money. As nothing to guarantee the repayment to the fed. Used to be backed by gold but now it is backed by promises that is why it is called fiat money as it is just paper. Also to continue to print money it becomes common and anything common becomes cheaper hence the lower exchange rates which helps America export but they gave all the manufacturing to japan and then china as it is cheaper, so now produce very little. Like Detroit for example. Redefine the currency as to making the next system and join the world closer as one and write off all the debt?? Same as the euro. Ps. Japanese debt is still debt and will be paid back by higher taxes.

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most Japanese debt is domestic. It is not necessary to repay the foreign country it like the United States in a date as for Government debt, it means people's property. it is not the people's debt

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When the government finally runs out of money

How can the gov't "run out" of money (yen) when it has the sole authority to create it? Just curious.

Maybe one idea is to redefine the yen to something else

Why "redefine" one of the world's most stable, hardest currencies?

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Peter: Introducing the "New Yen" is certainly a possibility and something that has been done in Japan many times in the past when the government became bankrupt. Those with savings will lose out, as in North Korea. Coincidentally, Japanese politicians have very little cash and keep their wealth in land and stocks. They won't lose out.

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We will all be all be slaves to repay it. And yes they may try to make a new currency called the asio perhaps like the euro in line with Rockerfellas Idea to make a one World Government. Perhaps why the aust $ and the USA $ and the yen were briefly at 100 for 1 yen? USA is going to have the same problem and eventually cannot service the debt. Wonder how much they paid Abe to do that?

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Scrote, scary suggestion but I don't think there's a reason to think that. Japan's currency has always been treated in a reliable and trustworthy way by the nation.

Maybe one idea is to redefine the yen to something else? Just end the yen and all debt, and "reboot" it into the iYen or something?

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When the government finally runs out of money it will take it from those who have it in their bank accounts, like they did in Cyprus.

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and yet Abe's clearly largely misunderstood economic "plan" of borrowing against future generations and forced inflation seem to have everyone drooling in his support. At the best of times the general public's understanding of economics is low... (and let's be fair his main supporters are: neo-nazis the elderly and farmers... not exactly the brain's trust there), but surely some of the voting people in Japan (i.e not us long-term tax paying residents) have an inkling that all the debt isn't just gonna "go away" ???

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What are the assumptions of this estimation? What interest rates are they projecting?

If interest on the U.S. 10 year treasure bills go much over 3%, the WORLD is pretty much done.

Game.

Over.

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