Japan's Debt higher than US?

[SlipperySlope]

Can someone explain this too me? It makes it sound like Japan has more debt than we do:

http://news.yahoo.com/s/ap/20050923/ap_on_bi_ge/japan_government_debt

[NewJeffCT]

1. ouch, that hurts

I think our debt may be higher in gross amount of debt, but as a percentage of the total economy, Japan's debt seemingly is way ahead of ours.

[DemocratSinceBirth]

2. Most Of The EU Countries Have Higher Debt To GDP Ratios Too

nt

[whistle]

3. Relative to the population and I suppose their GDP they do.....

...but that does not mean that the U.S. needs to keep drinking more of the same hemlock. I guess the whole world is in a financial pickle!

[JHB]

4. Who holds Japan's debt?

Other countries? Or its own citizens or banks? (The postal savings system?)

[Art_from_Ark]

11. According to this Japanese web site, nearly all Japanese debt is owned

by Japanese investors, and nearly all of them are resident in Japan.

http://www.adpweb.com/eco/eco248.html
(in Japanese-- see 3rd paragraph)

Another Japanese web site has stated that the Japanese government has been making a pitch to lure foreign investors to government debt since early this year, but the bonds are not so attractive since they are rated AA-, the lowest among the G7 countries (but I have heard this is because the interest is so low).

http://homepage3.nifty.com/funahashi/suugaku/suu31.html

This web site also states that the debt figures do not include government assets, which are more than half of the debt.

By the way, the recent special election here (Japan) cost a whopping 76.5 billion yen-- or roughly 700 million dollars. :crazy:

[enigma000]

5. 2003 Stats per OECD website

http://cs4hq.oecd.org/oecd/eng/TableViewer/Wdsview/dispviewp.asp?ReportId=2658&bReportOnly=True

Japan: a ratio of 138 to 100 (debt to GDP)

USA: a ratio of 35 to 100 (debt to GDP)

Germany: a ratio of 38 to 100 (debt to GDP)

France: a ratio of 53 to 100 (debt to GDP)

EDIT: link

[DemocratSinceBirth]

6. The EU Has Tried To Get Its Member Nations To Have A 3% Ratio

They are having a problem....


Our debt is manageable now but that doesn't mean we should ignore it or try to reduce it...

[thoughtanarchist]

7. debt to GDP is misleading. Here's why:

GDP calculation includes the amount the govt spends. That means that when a govt is on a deficit spending spree that amount increases the GDP, keeping the ratio suppressed and adding to the appearance of "growth".

When the US begins to operate on a balanced budget you can expect our debt as a percentage of GDP to go up due to the decrease in deficit spending.

on edit:

that is, if economic growth from the private sector does not make up for the decrease in deficit spending, the gdp will be lower; temporarily showing up as an increase in debt/GDP.

[Ravenseye]

8. Another Reason To Love Clinton

Things seemed to be going well in the mid to late nineties didn't they. Things weren't perfect, but were better than now, and we were making progress across the board.

And all with Clinton making sure we had a budget surplus.

Republicans can't be trusted to run a government.

[Inland]

9. Yeah, but Japan just illustrates the problems Bush is causing

Japan too loves big spending, concrete and bricks projects.

Japan has had about fifteen years of sluggish growth, exporting jobs, and recurring recessions.

Japan has an aging population.

Japan considers it's stock market an insider's game and the average japanese distrusts it.

Japan has been trying to "stimulate" an economy with spending and low interest rates, and people's confidence in the economy is so low that they would rather accept a negative real return on money in a government insured postal savings account than risk a loss by investing it in stocks or business or capital.

[DemocratSinceBirth]

10. Yep...

"Japan has been trying to "stimulate" an economy with spending and low interest rates, and people's confidence in the economy is so low that they would rather accept a negative real return on money in a government insured postal savings account than risk a loss by investing it in stocks or business or capital"


That's because the Nikkei crashed and took alot of people's wealth with it....

What saves Japan is the simple fact that they make quality stuff...

[Art_from_Ark]

13. Yeah, the Nikkei crashed

and took down lots of investors. I know some people who still have the NTT stock they bought at nearly $30,000 for ONE SHARE, and have ridden it down to about a third of the original price.

The average Japanese does not want to invest in the stock market.

There's an old saying in Japan... you may have it in America, too.. that goes

"Fool me once, shame on, shame on... me?"

[DemocratSinceBirth]

14. Japanese Are Savers Too... Americans Are Not

eom

[Art_from_Ark]

12. The concrete and bricks projects were spurred by the Reagan administration

in an effort to get Japan to "spend more and save less" ( :mad: ). Some of these projects have been very worthwhile, like the intensive efforts they have made to bring the sewer systems up to date and treat effluent before it enters bodies of water. Other efforts, like the pork-barrel highway projects, are a severe drain on the Treasury (just acquiring the land, for example, can cost billions of dollars).

[Art_from_Ark]

15. Here's another thing about Japanese debt

The Japanese government spends an incredible amount of money on foreign aid. But this money doesn't go into the pockets of dictators or corporate fat cats who hide it in overseas bank accounts-- it is channeled back into Japanese companies which provide expertise in dealing with disasters, or building infrastructure, or helping impoverished Third World countries develop an economy. Employees back in Japan receive a large part of this money, and they send it back into the Japanese economy. Local employees in receiving countries get some money, too, and this helps to stimulate the local economy.