tag:blogger.com,1999:blog-3448927642739850334.post3248338790383315707..comments2023-10-29T08:06:00.610+00:00Comments on The Political Economist: Graph of the week: debt is badVuk Vukovichttp://www.blogger.com/profile/01878567452492217960noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-3448927642739850334.post-67880494554117143752012-10-12T09:14:18.892+01:002012-10-12T09:14:18.892+01:00but Japanese people are major holders of the gover...but Japanese people are major holders of the government's debt. This is exactly why many people seem to think Japan's debt is sustainable, since the government is borrowing from its own citizens, not foreigners. <br /><br />Besides, the financial sector debt in Japan isn't the issue, it's the government debt, which has arisen over the years due to having <a href="http://im-an-economist.blogspot.com/2012/10/dangers-of-low-interest-rates-case.html" rel="nofollow">too low interest rates for too long</a>. Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-10866049762853266092012-10-10T18:51:46.679+01:002012-10-10T18:51:46.679+01:00I think that there may be an accounting problem in...I think that there may be an accounting problem in looking at D/GDP ratios, which is caused by financial intermediation and reintermediation. If Japanese households bought JGBs directly from the government, a big chunk of the financial sector's debt would disappear.Christopher T. Mahoneyhttps://www.blogger.com/profile/07096275297545797428noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-44414924878473287662012-10-06T22:13:57.906+01:002012-10-06T22:13:57.906+01:00The problem is that so damn many over educated idi...The problem is that so damn many over educated idiots have all thought, and convinced the politicians, that they had a new path to prosperity. And that you can just forget all the basics of economics which you learned in undergraduate classes, or just common sense.<br /><br />But it turns out there is no substitute for sound money, low debt, low marginal taxes, and sound lending policies. No substitute at all.<br /><br />The next nation to borrow and spend itself into prosperity will be the first.KyleNhttps://www.blogger.com/profile/15766641765942339253noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-2140326516353263302012-10-05T09:26:41.558+01:002012-10-05T09:26:41.558+01:00Yes, that is a big problem for the UK. If you go t...Yes, that is a big problem for the UK. If you go to the same like where I pulled out the graphs above, you will see the UK as well, where deleveraging hasn't started yet, at least not in the same pace it did in the US. Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-40007597140040700782012-10-05T05:48:07.908+01:002012-10-05T05:48:07.908+01:00Here is an overview of the total debt to GDP of th...Here is an overview of the total debt to GDP of the 10 largest economies: http://www.inflation-hedge.blogspot.com/2012/05/why-invest-in-farmland-as-inflation.html Japan is at 512%, but the UK is right there at 507%.Anonymoushttps://www.blogger.com/profile/12829375621188204129noreply@blogger.com