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https://bigthink.com/wp-content/uploads/2022/02/GDPDebt2021_1800px_Finalized.jpeg https://bigthink.com/wp-content/uploads/2022/02/GDPDebt2021_... I’ve always f

https://bigthink.com/wp-content/uploads/2022/02/GDPDebt2021_1800px_Finalized.jpeg https://bigthink.com/wp-content/uploads/2022/02/GDPDebt2021_... I’ve always found this infographic shocking. I don’t know how they can get out from under that and they keep going directly head on into it faster.

arc-in-space 4y ago
The inflation does make all that debt cheaper, so that's one way.
danuker 4y ago
Yields are positive and growing. https://tradingeconomics.com/japan/government-bond-yield https://tradingeconomics.com/japan/government-bond-yield What will happen when the interest on this debt gets too expensive? Further inflation and/or severe government austerity.
zztop44 4y ago
Indeed. But there’s a reason why shorting Japanese government bonds is known as the “widowmaker” trade.
KptMarchewa 4y ago
Giant majority of that is internal debt, so inflation is actually helping them.
Danieru 4y ago
Bank of Japan owns over half that debt. Take out that debt and Japan's debt to GDP ratio falls below the US's. Now factor in how Bank of Japan's active surppresion of interest rates occurs by buying debt. If Bank of Japan keeps the 10 year at 0.25% then the net government debt will continue it's free fall.
- Mistletoe 4y ago
  The Bank of Japan is 55% (100% voting interest) owned by the government. I’ve seen this same scheme before in the Alameda/FTX news…
  - spywaregorilla 4y ago
    Those two situations are very different
- mminer237 4y ago
  Roughly half of the US's national debt is owned by the government too.
  - Danieru 4y ago
    That figure includes the social security fund which is not included in the japanese figure. The social security fund is a liability, while the bank of Japan is fully a government asset.
prisoner655321 4y ago
I think it helps to start with what you think “getting out from under that” means. Why do you think it’s a problem for Japan have this much debt to GDP?

arc-in-space 4y ago

The inflation does make all that debt cheaper, so that's one way.

danuker 4y ago

Yields are positive and growing. https://tradingeconomics.com/japan/government-bond-yield https://tradingeconomics.com/japan/government-bond-yield What will happen when the interest on this debt gets too expensive? Further inflation and/or severe government austerity.

zztop44 4y ago

Indeed. But there’s a reason why shorting Japanese government bonds is known as the “widowmaker” trade.

KptMarchewa 4y ago

Giant majority of that is internal debt, so inflation is actually helping them.

Danieru 4y ago

Bank of Japan owns over half that debt. Take out that debt and Japan's debt to GDP ratio falls below the US's. Now factor in how Bank of Japan's active surppresion of interest rates occurs by buying debt. If Bank of Japan keeps the 10 year at 0.25% then the net government debt will continue it's free fall.

Mistletoe 4y ago
The Bank of Japan is 55% (100% voting interest) owned by the government. I’ve seen this same scheme before in the Alameda/FTX news…
- spywaregorilla 4y ago
  Those two situations are very different
mminer237 4y ago
Roughly half of the US's national debt is owned by the government too.
- Danieru 4y ago
  That figure includes the social security fund which is not included in the japanese figure. The social security fund is a liability, while the bank of Japan is fully a government asset.

prisoner655321 4y ago

I think it helps to start with what you think “getting out from under that” means. Why do you think it’s a problem for Japan have this much debt to GDP?