Government-debt per working-age person in Japan will be $140,000 in 2016

Posted on 24th October 2012 by Trevor Reynolds in Uncategorized

 

But They are Fiscally FUBAR…

  • Significant Fiscal Deficits
  • Gross Financing Needs Are Remarkable
  • Debt/GDP now above 80% in all G7 Countries
  • Debt/GDP ratio up significantly in Spain, Greece, Portugal, and Japan
  • In most G7 countries short term debt is 20% to 30% of total debt outstanding

 

and Financial Repression and Domesticization has become rife…

  • For Japanese investors JGBs look attractive
  • Foreigners own only 5% of JGBs
  • Japan: Holders of government debt as % of total outstanding. Foreigners hold 5%
  • Institutional investor holdings of government debt

 

which has lead to a nation (people and banks) that are entirely as one connected to this SNAFU…

  • Japanese banks have been increasing their holdings of Japanese government bonds
  • Japanese banks: Deposit growth higher than loan growth
  • Japanese banks buying JGBs for their surplus deposits
  • Japan’s elderly rely mainly on public transfers when they turn 70

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