Japan’s Government to Bankrupt the Country
This is just incredible. Japan just cross the rubicon a few weeks ago when our public debt went past 200% of GDP. Now, the government here has announced the new budget for 2011 and will actually increase our public debt once again.
As Yahoo reports:
TOKYO (AFP) – Japan’s centre-left government on Friday approved a record 1.1-trillion-dollar budget for the next fiscal year that aims to boost the flagging economy but adds to a mountain of public debt.
Prime Minister Naoto Kan’s cabinet backed the 92.41 trillion yen draft budget for fiscal 2011 which starts on April 1.
To finance the massive outlays, Japan aims to issue fresh bonds worth 44.3 trillion yen — meaning that for the second year in a row new debt will be bigger than tax revenue, projected to raise just short of 41 trillion yen.
“I think it is not a normal picture,” said Banri Kaieda, minister in charge of economic and fiscal policy, commenting on the state of public finances. “We must correct it as soon as possible.”
Japan’s public debt is already estimated at about 200 percent of gross domestic product, the highest level among industrialised nations.
The new budget is slightly larger than the initial budget for fiscal 2010, which stood at 92.30 trillion yen.
It will finance some of the spending pledges made by Kan’s Democratic Party of Japan (DPJ) — which ended more than half a century of near-continuous conservative rule last year — such as cash for families with young children.
The minister in charge of economic and fiscal policy says, “I think this is not a normal picture. We must correct it as soon as possible.” Well, no kidding… But how do any of these fools propose fixing this disastrous situation?
With the same failed policies of the last 20 years that have devastated this countries finances: More deficit spending and so-called “stimulus.” Insane.
Some people might think that this has nothing to do with them if they are living outside of Japan, but think again… Japan is just another of the big economic dominoes. When Japan goes, it will have a ripple effect that is felt the world over…. So is Japan before or after Europe or American states?
How much longer can Japan sustain this deficit until the day of reckoning comes?
Hope you own some silver or gold.