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How will japan deal with astronomical debt ?

PecosBob

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Will Japan change its currency to erase national debt. At the same time they could punish hoarders of cash not kept in banks by not letting them exchange it for the new currency.
 
No need if crypto-currency becomes more prevalent, that however, does not address the astronomical debt. As Japan's society ages and there are more and more "loaners" dying (no family) then the government takes the cash anyway right ?
What happened to all of those safes that were in the houses destroyed by 3-11 tsumani ? all returned to their owners ? or they held in some warehouse awaiting claim ?
 
One possibility is a backdoor default where the massive amount of government bonds held by the Bank of Japan is essentially forgiven (perhaps by rolling it over to 0 interest perpetual debt). This would lead to serious yen depreciation.
 
I would no be so negative as others here! I think we badly needed a second Tokyo Joe Blow!
To answer the question : no country really pays back its debt like someone has to pay back the mortgage on its home completely at some point of time . Countries just issue new debt . As long as there is trust in their currency (big if admittedly) and , as last resort , a central bank willing to issue currency just to buy this debt , everything is fine in FiatMoneyLand
 
It's compulsory to be drunk when writing here but please slow down your usage of speed.
You trying to make me lose customers again???
 
It will deal with it by doing nothing. Muddle muddle muddle as always. It doesn't need to do anything. Do you think that everyone is going to suddenly say, "uh oh Japan has a massive dept, we better sell all of our Japanese stocks and bonds and we better ask for repayment of all of our loans right away because the debt, well the debt is so BIG." I mean do you really think that is going to happen? I remind you the debt has been big for a long time, and Japan is not the only country with a big debt. The fact is that is spite of the debt, Japan will continue to be thought of as a very safe bet. People will continue to buy yen-based instruments - even as the returns are so low. And there is the fact that Japan and the US crosshold a huge percentage of their respective debts so JApans major trading partner will not let it fail. It will not let the yen tank. The worse that can happen is that inflation will go up a few % points. Its already started.
 
It will deal with it by doing nothing. Muddle muddle muddle as always. It doesn't need to do anything. Do you think that everyone is going to suddenly say, "uh oh Japan has a massive dept, we better sell all of our Japanese stocks and bonds and we better ask for repayment of all of our loans right away because the debt, well the debt is so BIG." I mean do you really think that is going to happen? I remind you the debt has been big for a long time, and Japan is not the only country with a big debt. The fact is that is spite of the debt, Japan will continue to be thought of as a very safe bet. People will continue to buy yen-based instruments - even as the returns are so low. And there is the fact that Japan and the US crosshold a huge percentage of their respective debts so JApans major trading partner will not let it fail. It will not let the yen tank. The worse that can happen is that inflation will go up a few % points. Its already started.
Besides Japan has two nice advantages:
- it issues debt in its own currency
- most of it is bought by Japanese themselves
Far from the Greek situation
 
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Far from the Greek situation
Yeah, those guys totally fucked themselves in the ass :D

As for the Japanese, it will be dealt with the same way everything else is... ignored until it can't be and then resolved painfully.
 
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