A Different Voice wrote:Rmf wrote:yes but they havent grown for over 20 yrs, they have zombie economy , if you go to japan its like you back in time to late 80s. and they are slowly losing the edge in many industries.Austin wrote:Japan has domestic debt level of 250 % of GDP and they are doing fine , they havent collapsed
Having a project 15.7 % of state GDP to Debt ratio by 2019 is penuts , My own country India has public GDP to Debt ratio of around 50 % if you add the state debt it adds to around 67 %
I believe Japan's annual GDP growth rate has been a little bit better than Russia's since the big dip in 2009. Obviously, this one data point comparing the 2 countries' economic performance does not give us the while story. However it is good to keep that data in mind.
Paper money has no real value. Looking at currency valuations in the big picture, a country's currency is a function of people's perceptions/confidence in its value now and in the future. As such currency has value because people believe it has value and will continue to have value. Japan can borrow in the manner it does because people "perceive" little repayment risk. Japan can borrow easily in yen because people "perceive" little currency valuation risk both. In the future such perceptions may change for a variety of reasons. If they do, then Japan will be in real trouble. Japan's debt levels make me nervous.
Russia's debt situation is good. Part of that is due to impressive fiscal discipline. Part of that is due to limitations on its ability to borrow. Part of that is due to its tremendous natural resources. Because of the Ruble's short and eventful history, it may take a while before it is "trusted." Russia is taking important steps to create this trust.
japan is finished , with fukushima you had 3 reactors melting , chernobil is nothing compared to that. lucky they removed core from 4th reactor before earthquake. hundreds of tonns of radiated water going into pacific every day , western media is hush hush but if that was in russia they would be going insane. it will take 50 years to close those reactors and they running out of room to store water they use to cool melted cores. buildings are so dilapidated if another quake hits or tsunami its a worldwide disaster. https://youtu.be/JMaEjEWL6PU?t=8m46s