User 142738

Treasuries and the U.S. Dollar: Twin Bubbles

The author claims that Japan government debt is 7 trillion dollars, which is a gross underestimation. You can find a comprehensive list of the past and present national debt of Japan, translated to English, here:

www.mof.go.jp/english/...

Translated to dollars at a rate of 95.43 yen per dollar, the total government debt is approximately $8.8 trillion. This is up from approximately $5 trillion in 2001.

Furthermore the author justifies such large deficit spending by using the country's savings rate as collateral. Many Japanese keep their money in "dollar accounts," not at the least because the interest rates are higher. Interest gained in dollars are also exempt from local taxes, which can be very high.

Has the history of issued 100-year Japanese bonds been forgotten? This article is rubbish!