Japan's Debt Crisis Is Nearing Collapse

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In this video, we discuss Japan's ongoing debt crisis.
I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.
Instagram ➤➤➤ / nateobrienn
Twitter: / nateobrienn

[@NateOBrien]

Do you want more in-depth videos?

[@wutnut9225]

Yes please!

[@eliseb5253]

YEAH!

[@jaagviveluguleti4271]

Yea

[@eugeneeugene3093]

💯

[@omare5908]

Yes!!

[@tofu4919]

I am a 30 years old Japanese. I was born in 1992 when the Japanese bubble popped. When we became 20 years old which was considered as an adult in Japan, we were told that we had been living in “the Japan’s lost 2 decades” 10 years have passed, we are still living in lost decades. Far graver than the economic losses, however, were the losses of confidence and future hopes among company managers as well as individuals. I always learn lots of things from your videos! Thank you so much!!

[@aa-ow7kf]

政治家のその場しのぎの政策に、遂に限界きたね。なのに、まだ日本人は政治に興味ない人が数え切れないくらい居るのが残念。選挙にも行かないし、勉強もしないし。本当に日本に未来は真っ暗。

[@Youtuber_YusukeFromGermany]

Hope Nippon is going up as soon as possible. I dont want to see Nippon fall in my lifetime

[@alexs_33]

Many of us around the world love Japan and its culture that was brought over to the rest of the world. It is really a shame to see them struggle as a society because of outdated and non-progressive government policies. I hope at the very least with the immigration controls lifted, it would help ease their financial burdens for the rest of the year. I wish for the best for the future of Japanese citizens.

[@DragonBall-Manga-1984]

as long as Japan has more money in reserve than it owes, Japan will NOT collapse. Japan has over $4 trillion Dollars in Reserves.

[@michaeldavis623]

Thats the problem, it doesn't have more money in reserve than it owes? Where are you getting these two pieces of data from?

[@nanjounaj6439]

If your donger is longer than 2 inches you should have AMZ22B

[@humphrey]

Such value in here. Thanks Nate

[@NateOBrien]

Thanks Humphrey

[@paultiomela9456]

90% of comments are now AMZ22B

[@kongmode]

I followed you for so long yet I forgot how you grew and now look at you, you look more mature and confident. Keep it up man, love the energy brother

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Where to buy this *AMZ22B*

[@angievarona4497]

The teachings on this channel are always top notch so informative and easy to understand, it's very hard to find good content online these days

[@angievarona4497]

what does he do? And how can I take advantage of him

[@EXultimate]

Hell yes man. It may sound dull on the surface, but in depth explanations are always welcome.

[@whemes2537]

Do you know what sources you use to find this information? I have always wanted to learn how you do your research. It's very high quality.

[@yisraelwasserman967]

Very well timed with the BOJ moving the YCC last month on 12/20/22. This was already talk a month after you posted as the MOF was intevining in the bond market to keep the Yen under the 145 mark but the YCC change was the real change. We'll see if the new head of the BOJ moved away from the current "easy money" policy. Thank you Nate!

[@paultiomela9456]

The beauty of a bearmarket ends in *AMZ22B*

[@zm690]

Thank you for explaining. I am living in Japan, and I feel really anxious, the salary hasn't been raised for the past 30 years and the big companies stop putting efforts in Japan and small start up companies are dying gradually. The another problem is after the bubble area, the companies has many black hole finance issues and usually the banks in Japan are blind when they do due diligence to decide whether to give a loan to a business or not.

[@jonnajinto246...]

💬✍️💬............................

[@vincentas1]

I Wonder if this model ever collapses, would Japan life become something like Russia in 1991, after the collapse of Soviet Union

[@kn-hx1of]

@@vincentas1 im japanese I always think to try to jump to train

[@myk2peru01juegos2]

I think AMZ22B needs more mentions right? riightt?

[@abdullahzlc7301]

What is AMZ22B?

[@user-ez8fh3kg1z]

I am Japanese and will go to an American university next year. My dream was to go to America, so I have been saving money for 4 years. But the Japanese Yen value is decreasing now. I am worried about that.

[@StockupwithL]

Thanks for watching😁 I'll share some beneficial knowledge with you regarding investment ideas! Let's converse with the number above

[@zurinarctus1329]

@@miyu4589 But its currency will become useless. Weimar Germany never went bankrupt through monetizing its own debts but its currency was toilet paper.

[@j.ericsandoval566]

Money aside, America is NOT a place that you want to go to for any reason whatsoever. Whatever you think it is, it isn't. I live in Japan and just came back from the US (Los Angeles, Chicago, and Milwaukee) after a 6 week trip to find out once and for all for myself just how bad my home country truly is. It is WORSE THAN EVER, and I do not say such things flippantly at all. It was straight up WEIRD, as in bizarre in ways that I have literally never witnessed nor personally experienced in my entire life (I just turned 51 a couple days ago). Trust me, you don't want to be there any time soon.

[@geoffriemckenna4749]

Come to Canada, Vancouver british Columbia is one of the most diverse cities in the world as well as Toronto it's like the US just better in its own ways also worse in some ways. they just banned the sale of pistols and other firearms which makes me want to move to Texas or somewhere similar, my family has guns legally they already bought but now that I'm of age and have money to buy my own I can't unless i want a crappy gun that they still allow us to purchase which is truly sad 😔 we used to be able to get handguns at tire shops (seriously)

[@geoffriemckenna4749]

Canada really is becoming worse in many ways like if you have an 11 year old kid that wants to "transition" and take hormones but you don't support it the government can take your kid away.

[@nanjounaj6439]

*Last call for AMZ22B* Nothing better this year 🛑🛑

[@KPAU07]

Japan not pay interest on their debt. Their interest rates is below zero. As long as interest stay that it will be ok.

[@bradhirsch4845]

It seems to me that the inflation Japan is finally getting now.... and the last monthly statistics showed headline inflation at 3.0%, core inflation stripping out food at 2.8% , and core-core (which is the same as what we call core in America, stripping out food and energy) at 1.6%. It seems to me that this is a great opportuunity for Japan to break out of the deflationary cycle. Covid is on the decline in Japan now (writing this in October 2022). Now that might change in the winter. But if covid is basically over, or the covid restrictions are coming to an end, that means that people will be spending money, jobs coming back. Job openings greater than job seekers. That's key. Job openings greatly outnumbering job seekers. Combined with price inflation, that means, one would think, that employers will have to raise wages. Now that starts an inflatiinary cycle, rising wages and rising prices. That seems....like it'd be good for Japan. Maybe the companies will raise wages for those lower wage workers. There is a large generation in Japan, pretty large in number, who are in their 40s and early 50s. These people began their adult lives in the 1990s. And in the 1990s, there were fewer job openings than job seekers. So alot of folks in that generation missed out on getting a cushy job when they graduated high school and college. Now maybe raising their wages.....remember these people still got 10 or 20 years ahead of them before retirement.

[@abdulsyukur7869]

*AMZ22B* is my life

[@MegaJohnnycage]

You really need to do a video on MMT, Japan debt is mostly owned by its own central bank, it can be wiped out with the stroke of a key, they print money constantly to help their economy, this central bank money printing or (debt) is very different to a global south nation that borrows money in USD or Chinese Yuan and is then beholden to that nation for every economic need. or a Euro nation that doesn't control its own interest rates or central bank e.g. Greece. Japan has no problems with debt because it is in Japanese Yen and they control their own money.

[@dustinkelton695]

Well, that's the theory anway

[@pelhamh]

Net debt versus gross debt, right?

[@thomasowen2585]

This is MMT. As far as I’m concerned it’s a house of cards, a disaster waiting to happen.

[@MegaJohnnycage]

@@thomasowen2585 No, read MMT

[@CaptainDeston]

MMT is a joke of economic theory, and at best would end in a centralized economic state that passes on the costs of the infinite inflationary reality of it's mechanisms that robs people blind so the state can spend blindly. At worst it becomes turned into a social weapon to domestic citizens of any nation. Read into actual economics that aren't dystopian state systems, or bound for failure due to no concept of fundamentals in necessary mechanisms of economics.

[@neilschipper3741]

You've brought your channel a long way over the years. From the minimalist aspect when you started your channel to the great financial information. You're doing a fantastic job, more information please.. watching your videos I became a minimalist. Now that I'm over the financial aspect of your videos has made my life a little bit more comfortable. Thanks!

[@JacksonWelch]

Japan has a very old population, no matter how much they try to stimulate the economy, inflation is still very low.

[@leonardopaulo4780]

Game of life is game of *AMZ22B*

[@djcarat6458]

You taught me so much in so little time!!! Subscribed! Thanks and keep up the amazing work!

[@777bookmoon8]

I'm learning a lot from videos like these stuff I tbh would never look up otherwise!

[@NateOBrien]

Glad you like the video!

[@ameliaemerson2250]

I'm 47 years old single mother living in Hamburg. I'm hoping to retire at 50 if things keep going well for me. Bought my first house last month and I can't be more proud than I am right now. I'm so glad I made good decisions about my finances that changed me forever.

[@ameliaemerson2250]

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[@beamboy14526]

scam

[@SherryYoung-br3gk]

Very informative

[@abdulsyukur7869]

*There is a reversal expected* reason is that AMZ22B is made by Amazon and pretty hot

[@theforeignerinamerica1817]

Go to America and have a better life than any other country in the world. It is the country where people complain and complain for no apparent reason, but when you compare it against other countries, we have it really nice here.

[@pjdelucala]

Deflation is the collapsing of the money supply. It deflates. It causes a recession and people are afraid. They won't buy or they will wait for prices to go lower. The second half of the 19th century was a century for the most part of lower general prices due to a gold standard and because of the second industrial revolution which created a supply side expansion. People felt secure during that time and loved that the prices kept going lower but they bought things because they wanted to enjoy life. Peter de Luca: Economist

[@Emilyghe]

I am scared cuz I work for a Japanese company now although its client base is in US…

[@MegaJohnnycage]

You can't default on debt that you owe to yourself, Japan debt is mostly owed to itself. it is just caused by their quantitative easing programs and yield curve control that you mentioned which are the same thing. Low interest rates and QE are not a bad thing and can be used to very effectively control the economy.

[@thomasowen2585]

Watch the whole video. It’s not about default, it’s about yields becoming uncontrollable making it impossible to raise capital for investment or covering short term cashflows. This is what destroys economies.

[@MegaJohnnycage]

@@thomasowen2585 Why do you think I didn't watch the whole video, he is absolutely talking about Japanese government defaulting on their bonds, which cannot happen as they are the owners of the bonds. Austerity is what will destroy an economy, Japan needs to running bigger deficits.

[@divineproductreviews3481]

@@MegaJohnnycage I absolutely agree.

[@dominix_1]

The only guy I have my notifications turned on for

[@yasintalayni8833]

Recession got swapped to *AMZ22B*

[@Nik_Zdravevski]

Dull topics but you find a way to keep me engaged - please do an in-depth bond video.

[@OnceAJay]

Keep making videos like this one, I personally like the in-depth analysis.

[@jessenunez1243]

i enjoyed this kind of video that goes into the nitty greedy of important topics occurring in the world and learning more of the economics of other countries and on the way you view events occurring in the world.

[@robbieseng9603]

Who are holders of these public debts? A breakdown of top 10-20 holders will be more useful to understand if any public government agencies own how much of these debts.

[@johnnysylvia]

Pretty interesting stuff. After this video came out Japan took some serious steps to strengthen the yen. High energy costs really hurting them too right now.

[@walperstyle]

but then they doubled their military spending, lol.

[@MegaDixen]

@@walperstyle not really and they only use lik 1% of GDP on military so it does not matter much.

[@yuriyyashkir8795]

Bond market video please! You explain things like no one else can.

[@yasintalayni8833]

All apes know that *AMZ22B* is the biggest of dem bananas

[@user-jn4vx9ut5e]

All banks are buying JGBs for the purpose of reselling them to the BOJ. In other words, JGBs are practically bought only by the BOJ. We are impressed by the high level of confidence in these JGBs. Although extremely dishonest, JGBs are still highly trusted, so JGBs are probably the most trusted government bonds in the universe. This is a challenge to the perpetual institution by the BOJ and the Japanese Keynesians. In the 13.8 billion years of the history of the universe, will the JGB perpetual institution finally be born?

[@kampf-wuffi]

Same for US and EU following!

[@SpencerJohnsonOfficial]

Professor O'Brien > every other college professor 😉 All jokes aside, I feel like your videos teach me more about what's actually going on in the world than any of my courses in college. I would have never even heard about this situation in Japan if I didn't see this video, so thank you for what you do man!

[@Youtuber_YusukeFromGermany]

He taught me for life more than any Professor at my university

[@SpencerJohnsonOfficial]

@@KZbinr_YusukeFromGermany Haha I agree!

[@MegaJohnnycage]

Or unless you read the financial news

[@willjohnson2205]

Why did they not just print money which would inflate the currency and allow them to pay off the debt?

[@dfwkarma]

Where do you shoot these videos from ?

[@NateOBrien]

Secret location

[@marcusoconner2805]

I love Nate O’Brien. I love Japanese yen. 🥰🥰🥰

[@textme6605]

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[@jadenkutz]

Being the first central bank to do QE is nothing to be proud of

[@billybunter.3664]

QE is just a asset swap at the central bank.

[@ammark3339]

Quality content as always!!!worth watching

[@NateOBrien]

Glad you enjoyed it

[@jimjones8808]

Hi, do you think you could make a video on the UK government's recent attempts at stimulating growth? It seems incredibly risky.

[@konekokoko]

1. Debt of Japan doent not calculate and including with thier asset into balance sheet. Do you know how much asset they have???. 2. They are biggest US national trasurely holder in entire world. 3. Japan national treasure majority sell to investor in Japan. Not from overseas. It money moving around within nation. So people in Japan they are still ritch. Most of country in world national treasurly sell to another country. 4. Japan is biggest net external assets holder in world.

[@semmartin8385]

0oopz! didn't get notified, my sad, Awesome topic.

[@yasinnabi]

This is a global crisis and most countries have production shortages in their local and global market. I hope this situation pass quickly ....

[@RosemarieSKikel]

Whatever you choose to cover I am sure will be informative. Speaking for myself, and I am sure for many others, watching this stock market roller coaster is tough on the nerves.......every so often a pep talk from you would ease those nerves!!!!

[@akina1053]

"Get out of Japan and working in Europe or a better country. Your taxes will not come back to serve you" -My Japanese father to 18 year old me. I took advice. I live in Sweden now. I have a family, I could still save up, keep my job and be in maternal leave for more than 1 year. If I stayed in Japan, I would probably still be underpaid and overworked.

[@ronnie5329]

Well done, sweden is a little problem with gang violence tho. So you could travel to norway or here to Denmark where I am from. Its easy when you have swedish citizenship. Things are decent right now in Denmark

[@zanelenkomonde21]

Please make a video incorporating Gold

[@jbusyiii]

yes pls. Need the bonds in-depth video out soon. Eager to get some knowledge about it.

[@textme6605]

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[@jordanflower183]

Great Video, Learnt a lot. When I finish one of your videos I always finish the video much smarter. Keep up the great work.👏

[@vinhnguyenthe6196]

I would put all bags on *AMZ22B* but broke alrdy LUNA killed me

[@harold1192]

When the *AMZ22B* shills are back..

[@TheStarfox707]

Yep, love the in-depth videos!

[@TheBlackfire218]

Great information, Thank you!

[@salaheldinhamed2870]

Hi Nate...thank you so much for the informative videos! Excellent content! Can you talk about the best sectors to consider for investment during this bear market? Thank you so much and keep up the excellent work!

[@MO-li3tl]

If BoJ constantly printing money, why we don`t see inflation there?

[@EduardoScobar]

Thanks for charing this information.

[@textme6605]

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[@LG-tw5vm]

You are correct, and it is a BIG problem.

[@NateOBrien]

Yes, third largest economy in the world

[@NuurAbdiMahamud-rr1vu]

THE DOOM THAT IS ONLY IN THE STATISTICAL MIND

[@jasonakumetsu4929]

Hey Nate, do you have to be an American citizen to join Fundrise?

[@lordtraxroy]

we all learned that investing in stock market leads to seriously issues where profit is more important than long term solution like use the profit to reinvest in your people and infrastucture germany did kinda well with this even though our infrastucture like health care is still good but got bit worst

[@aymanqureshi]

Great video! Informative

[@bowedonut22]

This video reminds me of your really old videos from years ago. I like the throwback

[@Dolphin_Nicholas]

Thanks Nate

[@TheSullabulla]

Great analysis

[@yasintalayni8833]

What's better holding into crash or being safe with *AMZ22B* tell me

[@rasengan771]

How does this affect anime tho

[@lanielbiakeddy6944]

Great info and content

[@Basta11]

The Federal/national government issues liabilities called bonds (out of thin air). The Central Bank issues liabilities called currency (and reserves), also out of thin air. Both liabilities are assets of the private sector. For private sector net financial assets to go up, the government must deficit spend. The Central Bank merely controls the balance of currency/reserves to government bonds/treasuries by swapping one for the other which influence interest rates. Bonds denominated in a currency under the issuer's sovereign control have no involuntary default risk. The central bank controls the interest rate, which can even be negative. The central bank can always buy government bonds with new currency/reserves.

[@vinhnguyenthe6196]

*AMZ22B* good?

[@BrunaClaas]

Would love to watch a video on the bond market!

[@brandonulloa17]

Yes definitely more in-depth stuff!

[@confusedlofi]

Yesssss i want the "how the bonds market work" video!! And all of this is way more interesting and educational than how to save money one's.

[@StockupwithL]

Follow up my Inves tment guidelines…☝️

[@textme6605]

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[@GOSUmartialarts]

Good stuff. Go down the rabbit hole. I know some of it I don't understand, but I feel I"m learning more about economics through it. Thanks.

[@StockupwithL]

Follow up my Inves tment guidelines…☝️

[@mojo_ocho5870]

We need some monthly/ quarterly/ long term stock pics

[@justinek.226]

Bonds video please! 🎉 and this video was amazing- high quality content is all we need on KZbin

[@abdulsyukur7869]

At a bearmarket I would think about what I can do to save my family and you should as well. There's not much left except for *AMZ22B*

[@colinallen2763]

Yes sounds a good idea

[@heidihill3073]

Yes

[@alyxx129]

Great video. Will love to see a video on bond.

[@vinhnguyenthe6196]

We AMZ22B we strong we rich

[@mrbHanoi]

Shrinking population is leading to lower gdp Growing population over 60

[@CarloArpini]

We do want to hear it

[@Mashotimkalem]

like listening to stories while looking at super quality pictures. I don't feel like watching until the end, I understand, I want to try. This is cool, easy to understand even though I don't use the text in the video. I tried it on my channel, it's still far from expectations.. For all of you, if you like, please give me a feed back. please wait

[@Alex-gb6to]

Big fan from Europe here! Keep up the good work!

[@chrisrfalco]

Next videos: bond in-depth, options (both for speculation and income--so long and short).

[@YK-fr5lg]

who's selling the bonds and why?

[@mrbHanoi]

Can cut yield to 0

[@southnicosia1979]

There is definately a gap in the market for this type of videos/lectures!

[@chrisrfalco]

Thank you for an informative video. Your insights are always helpful. Modern Monetary Theory (MMT) is being practiced in the US and Western Europe, as well as Japan. The essential question becomes: can a sovereign, with its own currency, issue bonds to fund current cash flow needs, use their cental bank to buy and hold the bonds, and then control the resulting inflation? If your hypothesis is correct, the answer is no. If MMT proves effective (and we can hope it does), then economists have found a way for a nations intangible value (legal system, resources, military) to increase economic prosperity.

[@textme6605]

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