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economy

Japan #1 Wealthiest Nation By Net Assets

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Economy

https://www.japantimes.co.jp/opinion/2018/09/02/commentary/japan-commentary/japan-savings-superpower-world/#.XQBIRGlE00M

 

Japan is the world's most indebted Nation with a debt to GDP ratio of 230% meaning the Government owes over twice the value of the entire Nations annual economic 

 

In addition the deficits are extrememly high and Japan seems to go deeper and deeper in the hole and it's shrinking and old population and non growing economy is making mater's worse

 

Yet ironically Japan is also the world largest creditor Nation. Japanese own more foreign assets in total than any other Country including other Nations debt

 

Japan's massive Government debt is also mostly owned by its own citizens and institutions which means when Japan makes a debt payment it's actually going back to its own economy

 

Japan also has the world's largest consumer savings rate around 27% of income compared to 6% in USA and 1.4% in Canada by Comparison

 

While Countries like Canada, Australia, Sweden have very high consumer debt but low Government debt, Japan has very high government debt while the rest of the country is saturated in wealth

 

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teawhore

and they said gwen stefani had no impact

nyc
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Woolfsmck

Wow..they must be rich

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true

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Economy
1 minute ago, Woolfsmck said:

Wow..they must be rich

I mean. Their situation is weird

 

On the negatives:

 

- Flat economy with no growth

- largest government debt burden in the world (230% of GDP)

- high deficits

- shrinking population and shrinking demand

 

Positives:

 

- Insane savings rate

- own tones of foreign assets

- their own government debt is mostly owned by them

- super low interest on debt (less than 1%)

 

I can't figure out if this is a healthy economy or a rotten economy

 

It's like a person who has a poorly performing career (AK economy) and low income but is stingy, saves every penny and lends to their parents who pay them back and so their monies in the bank stay high

 

That sounds like what Japan is :triggered:

 

@PartySick @Luc what u guys take of their weird situation?

 

I think an aging and shrinking population leading to deflation in combination with conservative culture when it comes to money created this weird unusual set of economic circumstances

 

Edited by Economy

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Akiki

It's not about how much debt you have but if you can pay for the loans. 

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Economy
Just now, Akiki said:

It's not about how much debt you have but if you can pay for the loans. 

Japan sort of can. So far...

 

Their interest rates are super low (like less than 1%) and so far their wealthy population that seems to avoid equities gladly lends the government money for next to nothing making it easy for Japan to constantly refinance

 

Now the question is how long can the fact that their population has a lot of savings and the fact that they lend the government for cheap cause they avoid domestic stock market save them for? 

 

Debt may be owned to its own Nation but it's still debt? No? But then will investors just keep ponzy scheme going and relending it out?

 

Japans shrinking population (and thus falling demand), flat economy, on and off deflation means that most companies don't grow and stocks are a poor investment unless they invest in foreign stocks.

 

For those that don't want to take currency risk they either hoard cash or invest in bonds which give a slight yield. Most choose government bonds

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Craven Moorecox
28 minutes ago, teawhore said:

and they said gwen stefani had no impact

Goopped

Edited by Craven Moorecox

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Woolfsmck
5 minutes ago, Economy said:

Japan sort of can. So far...

 

Their interest rates are super low (like less than 1%) and so far their wealthy population that seems to avoid equities gladly lends the government money for next to nothing making it easy for Japan to constantly refinance

 

Now the question is how long can the fact that their population has a lot of savings and the fact that they lend the government for cheap cause they avoid domestic stock market save them for? 

 

Debt may be owned to its own Nation but it's still debt? No? But then will investors just keep ponzy scheme going and relending it out?

 

Japans shrinking population (and thus falling demand), flat economy, on and off deflation means that most companies don't grow and stocks are a poor investment unless they invest in foreign stocks.

 

For those that don't want to take currency risk they either hoard cash or invest in bonds which give a slight yield. Most choose government bonds

Japan enjoys a trade surpluse with the largest consumer market too...sales of Japanese stuff are brisk...

like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true

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TimisaMonster

Wow they recovered well after the earthquake and tsunami and floods that have been happening

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Pacify Him

Wbk, Japanese monsters are, not only the best monsters, but the richest too :vegas::applause: phew, their power :heat:

I’m getting on your nerves
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Akiki
16 minutes ago, Economy said:

Japan sort of can. So far...

 

Their interest rates are super low (like less than 1%) and so far their wealthy population that seems to avoid equities gladly lends the government money for next to nothing making it easy for Japan to constantly refinance

 

Now the question is how long can the fact that their population has a lot of savings and the fact that they lend the government for cheap cause they avoid domestic stock market save them for? 

 

Debt may be owned to its own Nation but it's still debt? No? But then will investors just keep ponzy scheme going and relending it out?

 

Japans shrinking population (and thus falling demand), flat economy, on and off deflation means that most companies don't grow and stocks are a poor investment unless they invest in foreign stocks.

 

For those that don't want to take currency risk they either hoard cash or invest in bonds which give a slight yield. Most choose government bonds

Pardons. The way I see it, they will suck you till you can't pay anymore. Then they pardon the debt and start a new cycle. 

I studied international economics years ago and I remember that it was something like that. Sadly I can't go on detail right  now. 

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Economy
1 minute ago, TimisaMonster said:

Wow they recovered well after the earthquake and tsunami and floods that have been happening

This is not a new thing tho. Japan for many decades has been a high savings nation and a big creditor Nation

 

This is still happening despite a poor economy

 

Seems like the saturated wealth gets reinvested in other countries then the people make profit and hoard it :emma:

 

Japan's old and shrinking population also means falling real estate prices (making real estate a poor investment) and stocks in Japan are bad because companies aren't growing so ppl either invest in foreign stock markets or if they don't want risk the only alternative is lending their government money for dirt cheap. The government has no issue borrowing huge amounts of money for next to nothing cause many Japanese have no where else to invest if they don't want stock risks in other nations

 

A dying population I guess also means a lot of people earning inheritance which adds to cash sitting in piles

 

Japan's economy is a dead asset. It's performing terribly with bad productivity gains, flat growth and falling demsnd. But the wealth and money is there just sitting. It just needs to be kick started and people need to start spending

 

It's a country drowning in dead money

 

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PartySick
11 hours ago, Economy said:

PartySick @Luc what u guys take of their weird situation

My opinions are usually social, not economic, so I have no idea what to say here :huntyga: I just enjoy reading your economy threads as they're insightful.

Just as a surface level observation though, having a ton of cash is pretty pointless if you're not doing anything with it, no? :lolly:

I don't need you to respect me, I respect me. I don't need you to love me, I love me.

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Economy
27 minutes ago, PartySick said:

My opinions are usually social, not economic, so I have no idea what to say here :huntyga: I just enjoy reading your economy threads as they're insightful.

Just as a surface level observation though, having a ton of cash is pretty pointless if you're not doing anything with it, no? :lolly:

Japan is dead money.... It's an unproductive economy (by developed world standards) with low investment and no growth

 

The shrinking population adds to that issue. Demand for everything drops so most companies don't grow. Activity is dead

 

There's also on and off deflation as a result of this where money actually gains value and cost of living drops. As a result people's version of investing (if they don't want to invest in foreign assets) is to just hoard cash or lend it to government by bonds for a really low rate :rip:

 

Before the government started printing money to try to create some inflation the norm there was falling cost of living and wages were adjusted by gradual pay cuts, the opposite of what happens in almost every other Nation :triggered:

 

As old people are dying off at a faster and faster rate it also means more people are gaining inheritance but they are getting into their senior years too and just save it for retirement

 

Japan is saturated in money and wealth that's just sitting there but the economy isn't moving or running. The cash is just sitting there and as a result the Countries standard of living and productivity isn't what it should be

 

If any other Country printed as much money as Japan has they would of had hyper inflation by now

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Cnemone

I find very interesting the differences between Japan's debt and Italy's debt, even though i don't know nothing about economy.

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