Well, if they're going to stop salaries they better freeze interest on any debt people have, including credit card, and not expect payment deadlines for health insurance, pension, UI, residence tax, or any of the other outrageous costs required to be paid not to be met.
Kabukilover at Jul. 08, 2012 - 09:32AM JST
And an asteroid could fall on Tokyo in September. This is a Noda scare tactic.
Serrano at Jul. 08, 2012 - 09:35AM JST
And yet they're going to buy the Senkaku Islands.
Christina O'Neill at Jul. 08, 2012 - 09:51AM JST
Once the powers that be realise that there will be no public money to pay their salaries, the situation will be resolved pronto. I am guessing that even as I am typing this post that this realisation has allready hit them
cattzs at Jul. 08, 2012 - 09:51AM JST
Oh, Noda.
Equality at Jul. 08, 2012 - 09:55AM JST
Agreed, Serrano. Such a ridiculous notion given that the prime minister of Russia just said that "he doesn't" care about Japan's opposition to his recent visit there.
gaijinfo at Jul. 08, 2012 - 10:27AM JST
Biggest scam ever, and as old as time itself. Government needs more money. They create all kinds of scary stories of what's going to happen if government can't get it's money. Then they print a bunch more or borrow some (sell bonds) or do both (monetize debt). Then the corrupt politicians sit around and say "wow, that was close!" Then they go back to their kindergarten style bickering.
globalwatcher at Jul. 08, 2012 - 12:02PM JST
Why don't you elect Ozawa to be a next PM? He said he could fix Japan without tax hike which is a bogus claim to me. I think he would cut some social programs of people first in brink of eyes. Well, this is a truth, Japan is running out of money and the clock is ticking unless you are for tax hike or issuing another GJB with higher yeild (5% or more?) like Spain and Italy for foreign institutional hawks.
herefornow at Jul. 08, 2012 - 12:15PM JST
The deficit financing bill, which would allow the government to sell bonds needed to fund almost half of the budget,
"almost half the budget" financed by more borrowing. That just about defines kicking the can down the road. Way to go Japan.
PT24881 at Jul. 08, 2012 - 01:03PM JST
NOW YOU'RE SAYING YOU'VE GOT NO CASH TO BLACKMAIL JAPAN !?
A gang of clowns indeed when one noted merely in past months a few generous handouts by billions of dollars to Iraq, S.E. Asian tiny islands, Indochinese nations... ( more political than actually urgent needs...too long the list ), probably including also the Afgan leader renowned for mega drug crimes who is in Tokyo pleading for US$4 billion !
Herve Nmn L'Eisa at Jul. 08, 2012 - 01:18PM JST
Oops! We gave away and squandered all the money we stole from hard-working people! So we have to steal more so that we can give away and squander more!
globalwatcher at Jul. 08, 2012 - 01:52PM JST
A gang of clowns indeed when one noted merely in past months a few generous handouts by billions of dollars to Iraq, S.E. Asian tiny islands, Indochinese nations...
You have forgotten China (ODA) on this list. China is the 2nd economic giant in the world. Hope you guys are doing a reality check. and not sending money to China now. .
oberst at Jul. 08, 2012 - 03:30PM JST
Does this mean there is a possibility the J Government may default on the " islands " they are about to buy from Koga san ? may be Koga san should sell to the C Government ................................... just saying. LOL
mrmalice at Jul. 08, 2012 - 06:52PM JST
who the hell came up with the idea to give rating agencies that much power anyway? are they global, do they consist of at least people taken from each continent to reduce the chance at bias or do they (hardly possible if it's real) exist solely on american and british grounds?
Ah_so at Jul. 08, 2012 - 07:12PM JST
Japan has been spending more money that it gets in taxes for how long now? The best part of 20 years and this situation shows no chance of changing. The only options for Japan are inflation or austerity or a combination of both.
But which politician will cut spending and subsidies today so that the country could avert disaster in 20 years time? Not many and so Japan's long-term economic decline will continue.
mrmalice: is there anything about the rating agencies' thinking about Japan that you disagree with? They do not have much power in Japan anyway. JGBs are largely held by Japanese investors who do not listen to the thoughts of Moody's.
japan_cynic at Jul. 08, 2012 - 08:04PM JST
Just more of the same childish bickering from the politicians.
CrazyJoe at Jul. 08, 2012 - 08:19PM JST
Hope the government does not proclaim the "Emergency Financial Measure ordinance" in which all cash withdrawals will be blocked by the government. All ATM's will stop working. I hope there's no "bank holiday" this year.
Yubaru at Jul. 08, 2012 - 08:35PM JST
Why can't I do the same thing? Seriously speaking here, if any of us ran our households like the government we all would be on welfare.
It bugs me to no end that the people that are elected into public office cant control their own finances yet expect us the taxpayers to hold up our end of the bargain and pay and pay and pay and pay. And if we don't...they take it all away.
Enough is enough!
Herve Nmn L'Eisa at Jul. 08, 2012 - 08:46PM JST
As has happened and is happening in Greece, France, and Spain, cash withdrawals as well as other transactions have been curtailed, limited, or even altogether blocked. Don't believe it can't happen? It has. Hope you have a stash of cash!
Yubaru at Jul. 08, 2012 - 09:34PM JST
As has happened and is happening in Greece, France, and Spain, cash withdrawals as well as other transactions have been curtailed, limited, or even altogether blocked. Don't believe it can't happen? It has. Hope you have a stash of cash!
There is a HUGE difference between Japan and the European countries that are having problems with their debt. The overwhelming majority of Japanese debt is held by the Japanese themselves and not other foreign creditors. Individual Japanese households hold literally trillions of yen in savings, which is propping up the government year after year.
GW at Jul. 08, 2012 - 10:56PM JST
yubaru
indeed J-debt is held by locals for most of it, but it doesnt mean the fall might be lighter given the imbeciles in govt & the beaurocrates, if the J-govt defaults on paying the locals the %$#& will still hit the fan in all likelyhood & the economy will stop & then it will get ugly.
The only difference with the rest of the world is the trial of funds but the result will be similar to US or Europe style debt defaults.
It looks like we are possibly in for a rough ride!
konjo4u at Jul. 09, 2012 - 04:45AM JST
Newt Gingrich led a similar "shutdown" of the USA in 1996, a presidential election year. NG was the head of the lower house of the American version of parliment.
It was a very unpopluar political move, and quickly set aside Newt Gingrich until a brief rally last year in the first round of his party's elections for a candidate to run against Obama.
Bill Clinton was running for reelection when it happened. That was the real motive for the "government shutdown," not the economy.
Clinton's White House was creative and did things to keep it from getting as bad as Newt Gingrinch and his ilk wanted, but none-the-less, the government did shutdown, twice, briefly during the final months of the election.
basroil at Jul. 09, 2012 - 09:48AM JST
YubaruJul. 08, 2012 - 09:34PM JST
There is a HUGE difference between Japan and the European countries that are having problems with their debt. The overwhelming majority of Japanese debt is held by the Japanese themselves and not other foreign creditors. Individual Japanese households hold literally trillions of yen in savings, which is propping up the government year after year.
Yes, though BoJ taking only short term loans notes it a bit more complicated. If BoJ allows 10 year notes like any other country, it would stave off issues for a long time.
windandsea at Jul. 09, 2012 - 09:50AM JST
Simple: Reduce government, not the care of nor support of taxpayers.
basroil at Jul. 09, 2012 - 10:06AM JST
The money issue is really easy to fix.
One is decimating jobs at all levels government positions not directly involved with the information management chain. You don't need five people dedicated to the same three forms. Move things to networked computers and less useless stamps from a thousand years ago. If you can cut overall govenment force by 10%, you just saved a least hundred billion yen a year, likely much more in the long term.
Another is to cut the pension payments to a maximum of 100000 yen a month for those with no net worth and down to 0 yen/month for high net worth (i.e. if they were to use their remaining money from now til they are 100, there would still be a quarter or more remaining). Sure it cuts inheritance amounts, but with tax rates up to 70%, not like there would be anything left over anyway. Basically make welfare a backup system that focuses on giving people just enough to live, since then the money will go straight into the economy and not sit idly in some jii-san's safe. Potential savings for this are several trillion yen a month, especially when people start to retire.
People already considered the extended downturn in the economy to be due to an increase from 3% to 5%, so imagine what a 5% increase will do to an already staggering economy.
Herve Nmn L'Eisa at Jul. 09, 2012 - 04:48PM JST
@yubaru,
"There is a HUGE difference between Japan and the European countries that are having problems with their debt"
Yes, there is a big difference. I didn't say the situation was the same. What I said was about availability of cash may become a big issue. The nations mentioned are doing so to prevent/stop the flight of capital. Could happen in Japan, too.
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YuriOtani at Jul. 07, 2012 - 11:40AM JST
Japan needs to "print" the money and retire debt.
smithinjapan at Jul. 07, 2012 - 02:44PM JST
Well, if they're going to stop salaries they better freeze interest on any debt people have, including credit card, and not expect payment deadlines for health insurance, pension, UI, residence tax, or any of the other outrageous costs required to be paid not to be met.
Kabukilover at Jul. 08, 2012 - 09:32AM JST
And an asteroid could fall on Tokyo in September. This is a Noda scare tactic.
Serrano at Jul. 08, 2012 - 09:35AM JST
And yet they're going to buy the Senkaku Islands.
Christina O'Neill at Jul. 08, 2012 - 09:51AM JST
Once the powers that be realise that there will be no public money to pay their salaries, the situation will be resolved pronto. I am guessing that even as I am typing this post that this realisation has allready hit them
cattzs at Jul. 08, 2012 - 09:51AM JST
Oh, Noda.
Equality at Jul. 08, 2012 - 09:55AM JST
Agreed, Serrano. Such a ridiculous notion given that the prime minister of Russia just said that "he doesn't" care about Japan's opposition to his recent visit there.
gaijinfo at Jul. 08, 2012 - 10:27AM JST
Biggest scam ever, and as old as time itself. Government needs more money. They create all kinds of scary stories of what's going to happen if government can't get it's money. Then they print a bunch more or borrow some (sell bonds) or do both (monetize debt). Then the corrupt politicians sit around and say "wow, that was close!" Then they go back to their kindergarten style bickering.
globalwatcher at Jul. 08, 2012 - 12:02PM JST
Why don't you elect Ozawa to be a next PM? He said he could fix Japan without tax hike which is a bogus claim to me. I think he would cut some social programs of people first in brink of eyes. Well, this is a truth, Japan is running out of money and the clock is ticking unless you are for tax hike or issuing another GJB with higher yeild (5% or more?) like Spain and Italy for foreign institutional hawks.
herefornow at Jul. 08, 2012 - 12:15PM JST
"almost half the budget" financed by more borrowing. That just about defines kicking the can down the road. Way to go Japan.
PT24881 at Jul. 08, 2012 - 01:03PM JST
NOW YOU'RE SAYING YOU'VE GOT NO CASH TO BLACKMAIL JAPAN !? A gang of clowns indeed when one noted merely in past months a few generous handouts by billions of dollars to Iraq, S.E. Asian tiny islands, Indochinese nations... ( more political than actually urgent needs...too long the list ), probably including also the Afgan leader renowned for mega drug crimes who is in Tokyo pleading for US$4 billion !
Herve Nmn L'Eisa at Jul. 08, 2012 - 01:18PM JST
Oops! We gave away and squandered all the money we stole from hard-working people! So we have to steal more so that we can give away and squander more!
globalwatcher at Jul. 08, 2012 - 01:52PM JST
You have forgotten China (ODA) on this list. China is the 2nd economic giant in the world. Hope you guys are doing a reality check. and not sending money to China now. .
oberst at Jul. 08, 2012 - 03:30PM JST
Does this mean there is a possibility the J Government may default on the " islands " they are about to buy from Koga san ? may be Koga san should sell to the C Government ................................... just saying. LOL
mrmalice at Jul. 08, 2012 - 06:52PM JST
who the hell came up with the idea to give rating agencies that much power anyway? are they global, do they consist of at least people taken from each continent to reduce the chance at bias or do they (hardly possible if it's real) exist solely on american and british grounds?
Ah_so at Jul. 08, 2012 - 07:12PM JST
Japan has been spending more money that it gets in taxes for how long now? The best part of 20 years and this situation shows no chance of changing. The only options for Japan are inflation or austerity or a combination of both.
But which politician will cut spending and subsidies today so that the country could avert disaster in 20 years time? Not many and so Japan's long-term economic decline will continue.
mrmalice: is there anything about the rating agencies' thinking about Japan that you disagree with? They do not have much power in Japan anyway. JGBs are largely held by Japanese investors who do not listen to the thoughts of Moody's.
japan_cynic at Jul. 08, 2012 - 08:04PM JST
Just more of the same childish bickering from the politicians.
CrazyJoe at Jul. 08, 2012 - 08:19PM JST
Hope the government does not proclaim the "Emergency Financial Measure ordinance" in which all cash withdrawals will be blocked by the government. All ATM's will stop working. I hope there's no "bank holiday" this year.
Yubaru at Jul. 08, 2012 - 08:35PM JST
Why can't I do the same thing? Seriously speaking here, if any of us ran our households like the government we all would be on welfare.
It bugs me to no end that the people that are elected into public office cant control their own finances yet expect us the taxpayers to hold up our end of the bargain and pay and pay and pay and pay. And if we don't...they take it all away.
Enough is enough!
Herve Nmn L'Eisa at Jul. 08, 2012 - 08:46PM JST
As has happened and is happening in Greece, France, and Spain, cash withdrawals as well as other transactions have been curtailed, limited, or even altogether blocked. Don't believe it can't happen? It has. Hope you have a stash of cash!
Yubaru at Jul. 08, 2012 - 09:34PM JST
There is a HUGE difference between Japan and the European countries that are having problems with their debt. The overwhelming majority of Japanese debt is held by the Japanese themselves and not other foreign creditors. Individual Japanese households hold literally trillions of yen in savings, which is propping up the government year after year.
GW at Jul. 08, 2012 - 10:56PM JST
yubaru
indeed J-debt is held by locals for most of it, but it doesnt mean the fall might be lighter given the imbeciles in govt & the beaurocrates, if the J-govt defaults on paying the locals the %$#& will still hit the fan in all likelyhood & the economy will stop & then it will get ugly.
The only difference with the rest of the world is the trial of funds but the result will be similar to US or Europe style debt defaults.
It looks like we are possibly in for a rough ride!
konjo4u at Jul. 09, 2012 - 04:45AM JST
Newt Gingrich led a similar "shutdown" of the USA in 1996, a presidential election year. NG was the head of the lower house of the American version of parliment.
It was a very unpopluar political move, and quickly set aside Newt Gingrich until a brief rally last year in the first round of his party's elections for a candidate to run against Obama.
Bill Clinton was running for reelection when it happened. That was the real motive for the "government shutdown," not the economy.
Clinton's White House was creative and did things to keep it from getting as bad as Newt Gingrinch and his ilk wanted, but none-the-less, the government did shutdown, twice, briefly during the final months of the election.
basroil at Jul. 09, 2012 - 09:48AM JST
YubaruJul. 08, 2012 - 09:34PM JST
Yes, though BoJ taking only short term loans notes it a bit more complicated. If BoJ allows 10 year notes like any other country, it would stave off issues for a long time.
windandsea at Jul. 09, 2012 - 09:50AM JST
Simple: Reduce government, not the care of nor support of taxpayers.
basroil at Jul. 09, 2012 - 10:06AM JST
The money issue is really easy to fix.
One is decimating jobs at all levels government positions not directly involved with the information management chain. You don't need five people dedicated to the same three forms. Move things to networked computers and less useless stamps from a thousand years ago. If you can cut overall govenment force by 10%, you just saved a least hundred billion yen a year, likely much more in the long term.
Another is to cut the pension payments to a maximum of 100000 yen a month for those with no net worth and down to 0 yen/month for high net worth (i.e. if they were to use their remaining money from now til they are 100, there would still be a quarter or more remaining). Sure it cuts inheritance amounts, but with tax rates up to 70%, not like there would be anything left over anyway. Basically make welfare a backup system that focuses on giving people just enough to live, since then the money will go straight into the economy and not sit idly in some jii-san's safe. Potential savings for this are several trillion yen a month, especially when people start to retire.
People already considered the extended downturn in the economy to be due to an increase from 3% to 5%, so imagine what a 5% increase will do to an already staggering economy.
Herve Nmn L'Eisa at Jul. 09, 2012 - 04:48PM JST
@yubaru, "There is a HUGE difference between Japan and the European countries that are having problems with their debt"
Yes, there is a big difference. I didn't say the situation was the same. What I said was about availability of cash may become a big issue. The nations mentioned are doing so to prevent/stop the flight of capital. Could happen in Japan, too.