Personal View site logo
Make sure to join PV on Telegram or Facebook! Perfect to keep up with community on your smartphone.
Please, support PV!
It allows to keep PV going, with more focus towards AI, but keeping be one of the few truly independent places.
Japan: Needs some money
  • Vitaliy_KiselevVitaliy_Kiselev

    In Japan, five months into a fiscal year that started in April, the government has made do without the bonds bill by dipping into reserves in special accounts and making technical adjustments to bond auctions, government sources said.

    But Finance Minister Jun Azumi warned last month that without fresh borrowing the government will run out of money by October.

    If money does run out in October, jobless benefits, benefits for the poor, salaries for civil servants and transfers to rural governments, some healthcare benefits, education allowances and other welfare programmes could stop, the source said, which would hurt private consumption.

    Government sources said without the bill, which would allow it to sell 38.3 trillion yen in bonds or more than 40 percent of this year's budget, the economy and Japan's debt ratings could take a hit.

    Btw, Japan is now in quite big trade deficit. And looking at the situation it won't improve.

    Via: http://www.reuters.com/article/2012/08/24/us-japan-economy-budget-idUSBRE87N02V20120824

  • 3 Replies sorted by
  • chazzmoechazzmoe

    They have about 70 trillion (yen) in us treasuries http://www.huffingtonpost.com/2011/03/15/japan-boosted-holdings-of_n_836036.html I hope they don't cash em in, if they do interest rates in the US will rise and all of the sudden US debt becomes a huge problem. Think US Debt financed on a adjustable rate mortgage...

  • Vitaliy_KiselevVitaliy_Kiselev

    @chazzmoe

    Generally, they don't have them. As japan goverment attempted to sell small amount last year and US did not allowed it :-)
    This year one of governers wanted to start procedure of closing one of US military bases. Prime minister said that it is not up to Japan to decide where US military base can be and how long they will be present.

  • chazzmoechazzmoe

    Yes, it's a global house of cards... Japan needs to export goods to US to keep its economy from emploding and Japan working, but America is broke, so it loans us money so we can buy their exports. Same with China. America doesn't have jobs because everything is made in China, it's all a house of unsustainable cards that will soon fall. It will be good in the long term for everyone but the world economic "reset" will be painful first.

Add a Comment