3 ms·
Japan is also in a very interesting situation where their public debt is 266% of GDP with no end in sight of the debt-financed spending. And yet, there is still
by dougmwne 5y ago
Japan is also in a very interesting situation where their public debt is 266% of GDP with no end in sight of the debt-financed spending. And yet, there is still no inflation. Can they spend forever? Can the central bank just write off the debt without anyone taking notice? It will likely be prophetic for the West either way.
- AnimalMuppet 5y agoNo, the central bank can't just write off the debt, because that's so many peoples' retirement. The government has been able to create that much debt without causing too many other problems because people keep investing their money in the debt.
- dougmwne 5y agoNo, the Bank of Japan holds almost half of the debt, not just retirees. A write off has been suggested in the past: https://www.forbes.com/sites/stephenharner/2016/02/22/will-boj-write-off-japans-debt-the-nikkei-jgbs-and-the-failure-of-abenomics/ https://www.forbes.com/sites/stephenharner/2016/02/22/will-b...