Monday, December 28, 2009

Japanese Government Bonds "Japan Is Insolvent Due To Debt"?

"Japan is insolvent due to debt"? - japanese government bonds

http://www.telegraph.co.uk/finance/perso ...

From the article:
"Japan, but seems fragile. 200PC Government debt to GDP. Japanese interest rates are very low, 10-year bonds of the Government of Japan has just sold 1.4pc
... Debts of double financing 1.4pc GDP holds 2.8pc of GDP per year just to pay interest on the debt and to maintain stable - and that the current annual budget is in balance.
... Japan's current budget is a deficit of over 7PC of GDP. The deficit is growing, even before the recent boom.
... Japan has not increased 2.8pc decades, and there is no realistic prospect of doing so. Japan appears to be the case of a classical economists as "debt". A condition in which the debt / GDP ratio is declining If it's a business, are insolvent.

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