Gov't approves Y92.6 tril budget

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  • 1

    sangetsu03

    It's nice when 25% of your tax revenue must be spent to service current debts, which amount to more than 200% of GDP. The fact that interest rates are low, and that Japanese people keep a lot of money saved in banks allows this situation to exist without collapsing uner it's own weight. But the Abe administration has set an inflation target of 2% per year, and if the rate of inflation is greater than what people are earning in interest on their savings, what point is there in saving? People may begin to save less, or interest rates will have to go up.

    It's wonderful how goverments can manage their economies, spending $3 for every $1 they earn in revenue. Were they private conpanies, they would be shut down and their owners imprisoned for fraud. "Stimulus" indeed. But generally speaking, the stimulus money seems to find it's way into the hands of government workers, or government projects, and has little, if any, positive effect in the long run, after you deduct the negative effects of further increasing the national dbtt, and the costs of "servicing" said debt.

    What a circus...

  • 0

    herefornow

    but still relies on borrowing to cover 46.3% of its spending.

    Simply un-sustainable with an aging/shrinking population.

  • 2

    Scrote

    They claimed that tax revenue would exceed bond issuance, but they omit to mention Y2 trillion of bonds issued to fund pensions. They also claim that tax revenue will rise, but with salaries falling it's hard to see how that can happen.

    Another thing I've been wondering about: with Abe saying he wants 2% inflation, who is going to buy new bonds at yields lower than that? You'd have to be daft to buy a 10 year bond at 0.5% when inflation might be 2% in a couple of years.

  • -1

    globalwatcher

    http://www.rateinflation.com/

    The 2% inflation is not attainable. I am listing CPI of Japan here.

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