Japan debt hits 5.5 mil. yen per person

[Maciamo]

Mainichi Shimbun : Japan debt hits 5.5 mil. yen per person

The government's outstanding debts hit a record high of 703 trillion yen at the end of fiscal 2003, or 5.5 million yen per person, the Finance Ministry said.

The figure is up nearly 34.39 trillion yen -- or 5.1 percent -- from the year earlier, and 1.4 times Japan's gross domestic product in that fiscal year.

If we had to substract debts to calculate the GDP/capita, that means the average annual revenue of Japanese would be negative ! This ais called living on borrowed money.

The government's outstanding debts have sharply increased because it issued additional bonds to make up for a tax revenue shortfall and issued extra finance bills (FBs) for yen-selling, dollar-buying foreign exchange market intervention, ministry officials said.

Not a really good way to plan one's country's economic future.

[Maciamo]

It seems that the Japanese government owes most of its debts to Japanese banks (already at the brink of bankruptcy) and big Japanese companies. If the government can't repay its debts, it is very likely that all the big Japanese banks will go have to close, as they only have money on paper.

In other words, the Japanese state has been using ordinary people's savings to create employment, but as they can't repay, it equals to stealing all the nation's savings (and Japanese have one of the highest saving rate in the world).

It also means that all Japanese people would have to give 100% of their income (which means they cannot eat, pay for accommodation, etc.) during almost 2 years to recover the public debts. With the current 5% consumption tax and 10 to 40% income tax, it would takes several decades to pay everything back - if the government does not use a single yen of the tax revenue ! In other words, they are doomed. Either they raise taxes a good deal and cut government spendings (creating high unemployment) and live like that during a few decades, or they wipe off the bad debts and almost all Japanese loose their life's savings.

[mad pierrot]

Yeesh. Which would you pick? For that matter, what's your contingency plan?

[Foxtrot Uniform]

Man, reading this really makes me depressed... we are totally screwed!

[Hachiko]

Yep, and the South Park boys are laughing at the misfortune...

(1,100th post)

[Arc Light]

Geez...you'd think American politicians run Japan!

[Bandit]

Geez...you'd think American politicians run Japan!

Lol Arc.

Man, and people are always complaining about how OUR economy is doing bad.

[Tamer Brad]

Well, if I ever move to Japan, I'm not using a bank much. o_.;

[salarymanjapan]

It seems that the Japanese government owes most of its debts to Japanese banks (already at the brink of bankruptcy) and big Japanese companies. If the government can't repay its debts, it is very likely that all the big Japanese banks will go have to close, as they only have money on paper.
In other words, the Japanese state has been using ordinary people's savings to create employment, but as they can't repay, it equals to stealing all the nation's savings (and Japanese have one of the highest saving rate in the world).
It also means that all Japanese people would have to give 100% of their income (which means they cannot eat, pay for accommodation, etc.) during almost 2 years to recover the public debts.

these are good observations.. But, since a large part of the debt was taken from the banks (hence, from the savings of common folks), most likely what this means is: a fraction (perhaps significant) of the money people have in their bank accounts cannot be withdrawn right now. If all japanese would want to take out their savings, then the banks would have no choice but to refuse. Anyway, I don't think this is such a big deal because of the huge amounts of savings the japanese gathered through the years.

[alma7y]

thankssssssssssss

[Ewok85]

And this is where the myth of Japan really falls apart - many think that the official figures (which are pretty horrible already) are not the real figures, but just the 'best' estimate.

The thing is the government will fight tooth and nail, and screw anyone over to keep one thing afloat - and that's its companies.

In other words, the Japanese state has been using ordinary people's savings to create employment, but as they can't repay, it equals to stealing all the nation's savings (and Japanese have one of the highest saving rate in the world).

Japan has the most horrible interest rates in the world for savings, and most people keep savings because they are told to - by the governement who uses those same savings. Because the government has a huge pool of savings to work from, they haven't backed down one bit and continue to drive the country deeper into the red.

Doesn't help that almost all the prefectures are also in debt, and rely heavily on the national government for assistance to stay afloat. And the banks. And big companies... hmmm...

[包龙星]

In my opinion, Japan government should reduce its expenditure and interventions of economy,what's more,spend more attention to citizens' life.