Why Japan Is Heading To Bankruptcy

Japan is on the brink of bankruptcy. Here’s why the country is facing disaster, and how it could spill over into the United States.
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Host: / nickfreitasva

[@javabean215]

Prosperity is gained through production. In the 1600s, Spain raided over 100 tons of gold and 25,000 tons of silver from the Americas. They thought this made them "wealthy", when in fact all of that "wealth" put them headlong into a depression that led to the decline of their empire. They had so much "currency" that they stopped producing goods, choosing instead to buy them from their adversaries. Eventually they ran out of gold and silver, and their population was not able to resume producing goods that others wanted. You can only buy your way out of a financial crisis for a very short term. Then either the money runs out, or you print so much money that it's worth less than the paper it's printed on. Either way, you're betting your future against long term stability.

[@eamonnmckeown6770]

They didn't fully run out of gold until they gave it to the Soviets for safekeeping. 4D Chess move right there. lol.

[@meloncrusher3316]

But every western economies is basically like this.

[@BebekGoreng88]

so basically it's what the US (Utterly Shameless) doing after petrodollar agreement right?

[@chinggie2]

Sounds like Brandon's USA, now!

[@rogarizurieta7641]

Except what if you kept the gold, then. created a bond market where you sold said bonds to the same Spanish people, where what they are actually trading is the future yield on that bond (even if it is zero) and not the value of the gold itself. That is what Japan is doing.. do you see the difference?

[@stevenscott2136]

It's amazing how, despite the long and vivid history of failures by governments and other large organizations, people are still so eager to hand over control of EVERYTHING to them. Our laziness is truly epic.

[@hatebreeder999]

Its not lazyness its forced through police and military

[@darkaxel1991]

Let's not forget what led the Japanese economy into ruin: Overinflated real estate valuation. At one point, the city of Tokyo was said to be worth more in real estate than THE ENTIRE UNITED STATES. All of them. Their entire economy was pretty much based around real estate loans secured by assets overinflated in value to the point of ridiculousness.

[@tanjongmalim6869]

Disagree... is their aging and anti migrant mentality that resulted the current situation.

[@TheOtherKine]

@@tanjongmalim6869 Nope, and nope. Nothing to do with aging or immigration. It has to do with historical racism against the Japanese from foreign entities due to WW2, spurred on by the Americans

[@nitro2525k]

Why do we need to raise interest rates with 2% inflation? Tax revenues are at record highs every year, and the unemployment rate is 2.6%. The current account balance is in surplus at 25 trillion yen. How do you go bankrupt?

[@TheOtherKine]

@@nitro2525k This is a propaganda video. They want Japan to fail.

[@shioki6831]

The Japanese economy is not hopeless. Japan's foreign net worth is 471.3061 trillion yen, making it the "world's most networthy country" for 33 consecutive years. Japan is a creditor nation, not a debtor nation. About half of Japanese government bonds are held by the Bank of Japan. The remaining JGBs are bought by Japanese financial institutions. The source of the funds is ¥2043 trillion ($14 trillion) of Japanese personal financial assets that are deposited in banks at low interest rates. The BOJ receives half of the interest on JGBs paid by the government. And there is a law that says that the profits earned by the BOJ are paid to the government. Thus, this interest burden need not be taken into account! Furthermore, any increase in interest rates paid on JGBs is offset by a simultaneous increase in interest and dividend income from assets held. This is possible because Japan holds a large amount of assets. This is a major difference from countries that sell their government bonds to foreign countries! Also, regarding the issue of exchange rates, when the yen weakens against the dollar, Japan has many dollar-denominated assets overseas, so the value of those assets rises, and interest and dividends from those assets also increase. This is more than Japan earns from trade.

[@latte8680]

Japan is literally dying. No works, lot of part time workers, slavery and more pain😭😭😭😭

[@NazriBuang-w9v]

Lies again? Grab Grammy Berita Minggu

[@AAA999XYZ]

I appreciate that this channel values my time by making short videos. Short videos are more difficult to make than long (20 min) videos because you have to get concise information into less time while still being clear. Such editing demonstrates that care has been taken and that clarity of thought is important to this channel. Thank you.

[@SardonicDog]

You cannot print yourself out of recession.

[@wjdyr6261]

Can't spend nor tax nor borrow your way out of it either

[@strafe155]

This is a lesson that far too many "Nobel Prize winning Economists" refuse to learn.

[@1wun1]

Unless you are..

[@DxModel219]

did many many times… it’s been done for a hundred years since the forming of the federal reserve and it has multiplied since the decoupling of the gold standard. Japan’s problem is because their workforce is shrinking but they are technically ahead of many 1st world countries

[@Troy_Built]

You can certainly print your way into one.

[@luongo7886]

When I was in MBA School, I was the black sheep for advocating for the Gold Standard. Had we been on the Gold Standard, NONE of this nonsense would have taken place.

[@tanjongmalim6869]

Gold standard cannot reverse the old trend and anti immigrant mentality. It is the above two factors put Japan into current problem.

[@sadiqahmedabubakar6634]

exactly

[@TheOtherKine]

Yup, another thing to blame on the USA

[@TheOtherKine]

@@tanjongmalim6869 Nope, and nope. Nothing to do with aging or immigration. It has to do with historical racism against the Japanese from foreign entities due to WW2, spurred on by the Americans

[@serenityssolace]

​@@tanjongmalim6869Get away with your new world order propaganda

[@billF2380]

I guess Japan didn’t pay attention to what we did.

[@CharlesHuse]

And just as importantly, the US govt. has ignored everything that has been happening to the Japanese economy over the last 30 years because we have been doing the exact same thing for the last 4 years.

[@thomas_jay]

I like your humour.

[@jrdsm]

What did you do?

[@yannnnnnni]

@@jrdsm Reap Japan's assets of cause in this economic catastrophe.Anyway,the Us was the the main culprit of this disaster,and the main beneficiary。

[@oceanwave4502]

Western Europe is also going toward bankruptcy because of their social-welfare states. There are more and more pensioners while fewer and fewer workers (at working age). Those pensioners vote for politicians who allocate funding for healthcare and pension, not real innovations. The public debt is a timebomb in Europe. The political system is unable to change because most voters are pensioners.

[@BillHimmel]

"There are four types of economies: developing economies, developed economies, Argentina and Japan". Let's be honest: nobody understands why Japan isn't suffering from hyperinflation after these decades of money printing!

[@RafaelBenedicto]

You forgot to put Venezuela and Zimbabwe in there.

[@thomasgrabkowski8283]

@@RafaelBenedictoVenezuela and Zimbabwe have never been developed countries

[@marcusmoonstein242]

Exactly what I was thinking. Printing that amount of money should have led to inflation, or at least avoided deflation. Apparently the problem was that while the government could print the money, the people refused to spend it (rather putting it into personal savings) and so the expected increase in domestic demand never materialized. The government also didn't choose to spend the money itself to raise domestic demand, and instead also "saved" the money by investing into financial instruments like US treasuries. The result of all this "saving instead of spending" is that the Japanese government printed huge amounts of money while also failing to stimulate domestic demand. This is what led to the flat economy and no inflation. This is a complete economic anomaly and the only time in history it's happened.

[@BillHimmel]

@@marcusmoonstein242 Top!

[@simonl4657]

It's because people don't understand money printing and quantitative easing. The printed money goes mostly into covering up the massive black holes sitting on bank balance sheet from the credit collapse of the 1990s. The hole is so massive that it took 30 yrs of money printing to start trickling into the broader economy to cause inflation

[@mikerevendale4810]

Unfortunately, the censors on this platform don't like us discussing key topics, such as who owns most of our debt. It's not other foriegn nations but a banking cabal that's not part of our government at all, even though it pretends to be otherwise. And that entity could assume any of our foriegn debt effortlessly, unless they deem it's time to topple our nation. It's unsettling to ponder that we've given that kind of power to a foriegn, self-serving entity.

[@c.i.6950]

+100 - Thank you. Yes, i tell everyone, at every opportunity. First, they ignore me. Then, they call me crazy. Then, they fight me. Then they deny every disagreeing with me, and claim they always said it. A satanic cabal prints $ from nothing, and makes us repay it, with interest. It must be excised, cos we are at the endgame. Them, or us.

[@robertalaverdov8147]

Keynesian cultists will say that Japan is doing fine despite having a +200% debt to GDP ratio. What they don't tell you is that In 2023 Japan spent 22% of its budget on servicing its debt and by 2034 it's expected to hit 47%. And with a declining population and stagnant economy it won't be long before its debt payments outpace its ability to pay. Japan has essentially sold out its future for a better present day. The basic rules of economics 101 still apply; there is no free money, it all has to come from somewhere.

[@raymond_luxury_yacht]

Simple. It's just following the playbook of default, and new digital currency for global control of money. Every country is doing this because the 1% wants to control everything you do.

[@nitro2525k]

It would be possible to refinance the debt without repaying it, as countries other than Japan are doing. This problem can be resolved by changing Japan's domestic laws.

[@robertalaverdov8147]

@@nitro2525k There is no such thing as refinancing on national debt. Countries can have some of their debts forgiven and payments rescheduled through negotiation but in reputational terms this is still a default. It's also something that's only been done with outside creditors like Argentina having most its debt held by US corporations. For Japan to try the same thing is akin to trying to operate on a brain tumor by cutting of the persons head. Most of the Japanese debt is held internally and spread out among major financial institutions and businesses. With the government pushing government bonds into corporate pension systems as well. This was done in order to reduce interest on the debt. And so for Japan to default on its debt would mean to completely destroy its own economy. As the result will be bank failures, lost pensions and the currency having no value. The only plausible option is to significantly reduce spending and raise taxes. But this too may backfire and destroy the economy. Japan has in essence created its own kamikaze boomerang.

[@nitro2525k]

@@robertalaverdov8147 What, it's full of lies and I don't even have the will to refute it. Are you okay? brains

[@nitro2525k]

@@robertalaverdov8147 Most countries only record interest payments.

[@emanuellepiz1350]

You should do an episode of Javier Milei and why his economic policies are working. It could be a follow up video to the one you did about inflation in Argentina a year ago

[@bereg2k]

It’s too soon now. Give it 3-4 years, and at least his entire term in the office , and then yes, something could be analyzed.

[@Z-add]

His economic policies are not working at all.

[@visitante-pc5zc]

@Z-add yes it is working. Inflation and government spending have been reduced. Prices are more stable. There can be a economy now. I hope he manages to pass more bills to fire public employees and shut down government agencies. The days of socialism are over in argentina and hopefully in the whole world

[@chesshooligan1282]

@@Z-add Sounds like you've been watching Times Radio, Joe Blogs, or other propaganda channels. Inflation in Argentina is now close to 0%, and Milei is only getting started. His new law eliminating a truckload of regulations only passed a few days ago, and he didn't get everything he wanted as the Argentinian congress is still controlled by the left.

[@petuniasevan]

Japan is an extreme example of what happens (among other things of course) when a population has a very low birthrate and ages out. There's fewer new workers to generate commerce, tax funds, and buy goods, all the things that make an economy run. Pair that with the huge percentage of elderly in Japan: about 30% of the population is over 65 years old. This means that in the next thirty years, Japan's population will drop drastically to under 100 million people unless birthrates rise. The elderly have to rely on support (fewer younger people to support them), the children being born are way too few to stabilize the population, and the economy is being propped up by stopgap methods that WILL eventually give out with no recourse.

[@coc1841]

Isn't this how things balance out?

[@petuniasevan]

@@coc1841 No. Less workforce to support MORE aged people creates an imbalance that cannot be restored in a mere few years. The Japanese economy will continue to shrink, and once they have cashed in their U.S. Dollar holdings, they will have nothing left to stave off the inevitable. The population decline will increase (in my opinion) even more than the projections show now. It has some important differences from historic depopulation events like the Black Death. There, yes, overall population went down. But then, the remaining population was young and in demand for the skills and labor they could bring to the rebuilding of society. They were not also using fiat currency with no backing, nor were they printing paper money for government bonds like tomorrow would never get here.

[@FartSquirel]

@@petuniasevan That's why they're planning to open the country to immigration.. Huge mistake... they'll lose the country and the economy as well.

[@uncklebuckle6859]

And during times of economic hardship, I’m wagering the birth rate will decline further.

[@1wun1]

...of what happens when you win an economic war without a strong military. The Plaza Accords

[@therandomaustralianball5516]

Every country wishes to be a developed one, but it's almost as if as soon as any country becomes developed, it starts facing problems which are seemingly impossible to get out from.

[@nealdenison]

Does anyone think history won’t repeat what happened to Germany after WW1 when it went the printing money route? Nick knows

[@nitro2525k]

Germany, which experienced hyperinflation immediately after the war, implemented a deflationary policy in fear of hyperinflation, leading to deflation, recession, and the rise of the Nazis.

[@Cmon-Man]

The US is on the same path. “Tolerance and Apathy are the last virtues of a dying society” - Aristotle

[@rogarizurieta7641]

Naaah.. US is on a much more difficult path because the debt created in Japan is held and owed to the Japanese people, meaning they owe that money to themselves and . The US debt is owed to foreign countries, namely China (who is now dumping using Treasuries). This is why Japan has the highest savings rate per country while the US is the opposite. Essentially if the Japanese bonds market where to go broke, all the savings would still be held in Japanese banks.

[@robdavidson4945]

I used to read The Economist magazine until they started push lefty agenda and grip about that "awful out of dats document" the United States Constitution.. You have explained the Japanese and American economic ties in clearer and simpler language and at much less cost than the Economist ever did. Thanks. Keep doing what you're doing.

[@dannylo5875]

Honest that news is an elites and cultist rag. They want all manner of control being lifted so they can do whatever they want.

[@eliel14ful]

Hayek was the best economist in modernity but no one listened

[@stevenscott2136]

That's precisely WHY no one listened. He told the truth -- life is hard, everything costs something. People don't want to believe that.

[@jcg4350]

Salma Hayek has big boobs too, not just a brain...ok, I let myself out.

[@clearviewmoai]

Japan's downfall began when the Japanese stopped producing more Japanese. The only sure way to prosper is to be fruitful and multiply in strong families.

[@pmchamlee]

The good ole US of A has done exactly the same thing!

[@joejackson6205]

Excellent. Also demonstrates Nixon's greatest mistake. Which was not Watergate, but taking the US currency off the gold standard. Rule 1 of currencies, if the paper is not backed by a tangible worthwhile good(s), it is just paper and it's value is an illusion. Though admittedly the problem with hard assets, they have to be converted to cash, before you go to the grocery store.

[@JuliusDofarios]

Japan's debt is not an issue, since nearly all of it is low interest loans to its own citizens. Japan's Inflation is the real problem.

[@nitro2525k]

Japan's inflation outlook is 2.3%. Japan's inflation is not a problem.

[@tatsumasa6332]

The bonds stay in here but the treasury holds the fiscal.

[@morganoox3838]

Perfect timing for "by 2030 you will.own nothing". It's going to be world wide.

[@cdevidal]

You will rent everything and they will be happy

[@morganoox3838]

@@cdevidal you will be a slave.

[@johnnybc1520]

​@@cdevidalyou dont get to exist. It is all happening so fast. Going extinct by ai

[@danielbcd7620]

had they just let the recession happens, the economy probably would have been much better now

[@AmericanRevanchism]

Japan selling off US treasuries doesn't necessarily lead to higher US interest rates (it could). It would lower demand for the dollar which would make the US dollar weaker compared to other currencies. That would make importing more expensive and exporting cheaper, which would help us to export. That's what China manipulates their currency to do. Also, Germany keeps smaller European countries on the Euro to weaken the Euro and make it easier to export. So that could be a good thing for the US.

[@markc6714]

Pot kettle when you look at the US debt levels

[@dariusthurman8835]

Couldn't the Bank of Japan declare Bankruptcy and create a new currency??

[@shioki6831]

What is incorrect about this video is that it only looks at the liabilities on the balance sheets of the Japanese government and the Bank of Japan, and does not consider assets at all. Japan's foreign net worth is 471.3061 trillion yen, making it the "world's most networthy country" for 33 consecutive years. Japan is a creditor nation, not a debtor nation. About half of Japanese government bonds are held by the Bank of Japan. The remaining JGBs are bought by Japanese financial institutions. The source of the funds is ¥2043 trillion ($14 trillion) of Japanese personal financial assets that are deposited in banks at low interest rates. The BOJ receives half of the interest on JGBs paid by the government. And there is a law that says that the profits earned by the BOJ are paid to the government. Thus, this interest burden need not be taken into account. Furthermore, any increase in interest rates paid on JGBs is offset by a simultaneous increase in interest and dividend income from assets held. This is possible because Japan holds a large amount of assets. This is a major difference from countries that sell their government bonds to foreign countries! Also, regarding the issue of exchange rates, when the yen weakens against the dollar, Japan has many dollar-denominated assets overseas, so the value of those assets rises, and interest and dividends from those assets also increase. This is more than Japan earns from trade.

[@rogarizurieta7641]

@@shioki6831Thank god someone gets it. Cheers mate.

[@bruncibanci]

Nick my man, great video, just one note. If Japan went on to dump tons of US Treasuries, it would indeed increase it's supply and hence lower price and hence send yields up and hence all the other interest rates with them. But the thing you missed is the role of the Fed here, which is exactly to step in and buy all those Treasuries with newly created dollar reserves. That would prevent their supply to overflood the US reserves market and hence keep IRs down hehe. That doesn't mean it's good, it's just another inflationary response to deflationary condition, classic. Cheers man, keep up these videos🔝🍻

[@mikelundberg6550]

So what some of the top economists have been saying for years eventually all the money printing will catch up with Japan …… AND THE UNITED STATES! ✅

[@osiris2u]

Keynesian economics is the cause of all the fiscal ills in the world. As each subsequent batch of politicians comes to power, eager to show that they're better than their predecessors, printing more money to promote economic growth artificially to hoodwink their citizens about the country's progress becomes more and more imperative. The day of reckoning looms ever larger as the can gets kicked further down the road.

[@taskdon769]

Have you even bothered to pay attention to Japan's economy for the last 30+ years? I doubt it.

[@bananaboy6555]

Yup the day of reckoning is almost upon us

[@GillerHeston]

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

[@rogerwheelers4322]

The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.

[@joshbarney114]

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[@FabioOdelega876]

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[@joshbarney114]

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[@FabioOdelega876]

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[@eymeeraosaka2954]

The Plaza Accord 1985 is one of the main causes of present day Japanese economic woes. If you don't talk about the Plaza Accord, then your explanation is incomplete...

[@Epicredeemer]

History of Everything Podcast did a deep dive on this topic a couple weeks ago. If your interested in more on this, you can go check out his video after this

[@JS-jh4cy]

Due to old age and dying off, not much of an economy, when you are dead

[@JS-jh4cy]

At least there's no more taxes when dead

[@mchume65]

Their other big problem that was lightly mentioned is their declining birthrate. Adult diapers are outselling baby diapers. Many other 1st world countries have the same problem.

[@tehtapemonkey]

I'm practicing to be a politician, so I have a solution for this: Let's do nothing and then blame our opponents when it crashes.

[@bradmontgomery5575]

Was this started by the diminishing birth rate in Japan or is that just a contributing factor?

[@ZoobTheElement]

Japan bonds are largely owned by Japanese themselves contrary to USA, Yen price going down will make Japan industry more competitive for exporting. Situation is not the same as USA.

[@user-oz4nn3jw8p]

Japan is a nation with virtually no natural resources like oil, natural gas, coal, iron and copper.

[@nitro2525k]

@@user-oz4nn3jw8p Because Japan has more financial assets than that, Japan's current account balance in 2023 will be in surplus at 25 trillion yen. The United States has a deficit of $818,823 million.

[@shioki6831]

What is incorrect about this video is that it only looks at the liabilities on the balance sheets of the Japanese government and the Bank of Japan, and does not consider assets at all. Japan's foreign net worth is 471.3061 trillion yen, making it the "world's most networthy country" for 33 consecutive years. Japan is a creditor nation, not a debtor nation. About half of Japanese government bonds are held by the Bank of Japan. The remaining JGBs are bought by Japanese financial institutions. The source of the funds is ¥2043 trillion ($14 trillion) of Japanese personal financial assets that are deposited in banks at low interest rates. The BOJ receives half of the interest on JGBs paid by the government. And there is a law that says that the profits earned by the BOJ are paid to the government. Thus, this interest burden need not be taken into account. Furthermore, any increase in interest rates paid on JGBs is offset by a simultaneous increase in interest and dividend income from assets held. This is possible because Japan holds a large amount of assets. This is a major difference from countries that sell their government bonds to foreign countries. Also, regarding the issue of exchange rates, when the yen weakens against the dollar, Japan has many dollar-denominated assets overseas, so the value of those assets rises, and interest and dividends from those assets also increase. This is more than Japan earns from trade.

[@ZoobTheElement]

@@shioki6831 thanks for the precise input

[@urimtefiki226]

Japan is a strong country will never bankrupt.

[@ctreid87]

Beard Wednesday!

[@rexmundi273]

S&P 500 is facing the same as the Nikkei in 1990.

[@Noobmaster69_bro]

Wow . This guy just predicted future

[@Ava-ex8og]

Great episode

[@Danny2k38]

Correction: Japans 200%+ of Govt debt to GDP is not double of Govt tax revenues as Govt revenues are only a fraction of GDP. Govt debt as a % of govt revenues is much higher, across all nations. Debt to gdp is largely a useless metric, % of revenues is key.

[@regolith1350]

I predict in the very near future, Japan will spend huge sums to acquire humanoid robots that are in feverish development right now by competing robotics firms. Japan had worked on humanoid robots for decades, to address problems with their aging population, labor shortage, etc, but with little success. But now the AI-fueled robotics revolution (largely in the West, bypassing Japan) looks like it has a good chance of delivering real progress. It's hard to imagine what economics even looks like when you can essentially manufacture human labor. An "age of abundance" or total global collapse?

[@stevenscott2136]

The elites will use the robots to bypass the need for humans, maintaining themselves in luxury while the nation collapses around them. This is what elites have always done, except they used to need human slaves to make it work.

[@pmchamlee]

Be careful of what you wish for. . .

[@younube2]

It can also open up a private swap line with the USA to avoid dumping treasuries

[@yuzuki7531]

It’s the world’s second largest stock market. 🇯🇵🎌🗾

[@rgnandanshetty2950]

So, if Japanese start selling US forex reserves then it's obvious US interest rate cuts will be delayed, which in turn will lead to market crash

[@wtf_usa5597]

It worked so badly for them we've been doing it here here now for decades and getting exactly the same results. Go figure!

[@tatsumasa6332]

It's not the issue of the bonds staying with BOJ, but it's our treasury holds full control of the budget, fiscal. we have money but cannot spend it because of it.

[@HarishAchutham]

Nonsense, Japan is very different from the US. America prints money to fund social security but Japan prints money to fund bullet train in India, infra projects in Africa etc. You are the most sloppiest researched KZbinr on the right

[@elielee7364]

Japan is learning from the US on how to 'print' Yen to get out of its own economic ills

[@randomname931]

No mention of the plaza accord.

[@sparkymmilarky]

The birth rate is the single biggest issue the west faces.

[@avroarchitect1793]

Much like Japan. Women in the West have decided to stop having kids. 50% of my highschool graduating class were sure that they never wanted kids and some were trying to get their tubes tied after graduation

[@shockwonders2141]

Not just the West, almost every developed nation, including Japan, China, and especially South Korea.

[@avroarchitect1793]

@@shockwonders2141 Is the human species collectively commiting suicide?

[@akirak1871]

Maybe it wasn't such a good idea after all to devalue and denigrate fathers/husbands and remove most incentives for men to pursue marriage...

[@shockwonders2141]

@@avroarchitect1793 Not necessarily, Africa actually has high birth rates, and even for developed countries I don’t think it means extinction, but it will definitely destroy economies worldwide.

[@InvestBetter.]

Translation: If any nation needs to move to a Bitcoin Standard, it’s Japan. Bitcoin is growing at 140% a year. Japan’s Debt-to-GDP is around 230, when it should be 100-110. These two were made for each other..,,,

[@brianpereira7483]

Doesnt go bankrupt, just devalues the yen purposely until it cashes in its treasury holding when the yen goes 200+ to the usd

[@thomasgrabkowski8283]

They’re running out of working aged people

[@rogarizurieta7641]

One fatal flaw in your analysis is the fact that the quantitative easing and buying of bonds is sold to the Japanese market, meaning that the debt that is created is owned and payed to Japanese people. So as long as the Japanese Government pays its debt to its own citizens there is essentially no issue. This thus creates the existential problem of the Japanese system, it is robust and able to absorb shocks from within but is exposed to international trends. Meaning that Japan is exposed to the economic situation in the rest of the world. Essentially this means that when the whole world goes down, Japan goes down with it. This is why the Norikuchin Bank (one of the largest institutional investors in the world) was recently placed on the SEC (securities and Exchange Comission) watch-list with a risk exposure of 13% of its holdings (13 billion of 1 trillion dollars); the noteworthy fact is that this exposure was not due to bad loans of Japanese yen. The exposure instead was due to UNDERPERFORMING bonds held in FOREIGN CURRENCY, notably the EURO and US-dollar. This was due to a hike in interest rates in the Eurozone and in the US. Meaning that the exposure was due to raised interest rates that will not yield the earnings the bank had projected in their portfolio; again debt that would be payed to Japanese people. So in a way the Japanese bond market is much more resilliant than it appears at first glance. But that’s all this channel does is first glances and cheap analysis that is neither adept or accurate.

[@user-tj3pw5rd3t]

This also shows Inversions, can fail countries if they get into a bad production, that creates losses.

[@KOKO-kv9vs]

Frankly speaking poverty seems to be much dramatic in US cities than in Japan.

[@jimmynolet3752]

Japan is one of the most heavily invested countries in the USA aside from China

[@junedhussain6252]

Thank you so much for the video. I wanted to ask what caused the 'lost decade or decade's' in Japan and would they recover back to their glory days of the 60's, 70's and 80's.

[@Airsails]

Why does the fed target 2% inflation instead of 0%?

[@agustingrimoldi1078]

That's why every country should imitate Javier Milei

[@potatoes1000]

it annoys me how rare common sense is. its rarer than gold.

[@agustingrimoldi1078]

@@potatoes1000 I'm not getting if you agree with my comment or not, could you clarify please?

[@potatoes1000]

@@agustingrimoldi1078 Agreeing

[@potatoes1000]

Meaning Javier Milei has common sense.

[@agustingrimoldi1078]

@@potatoes1000 absolutely, in fact so much common sense that in his first year in office he is diverting from his pure libertarianism, understanding the reality of the situation and making the best of it

[@doghouse010]

Is not the yen in "freefall" as you put it because the US fed rate is so high? If Japan raised their interest rates commensurate with the US, domestic consumption would fall and likely cause recession, but then the currency would appreciate no?

[@Anti-CornLawLeague]

Japan’s real estate prices fell by 80% throughout the 90s and American needs that so bad. Help us Zoomers afford homes.

[@jamesfowley4114]

Aging and shrinking populations are unfamiliar to policy makers. We need a strategy to deal with it here.

[@dannylo5875]

You can buy one for cheap except no Jobs. You bring your business or job or profession with you!?

[@skipmatsey8352]

It will happen here in the States eventually. Keep this in mind young voters when government tells you they are the solution.

[@real.hatsune.miku.39]

No wonder plane tickets are expensive. I'm planning on going in February, but the tickets start at $940, which should be at $740. Might have to postpone. And I thought the Japanese were smart. Just comes to show that anyone in politics is dumb.

[@godwinmanuel6963]

The Bible warns against debt. But who reads that old book?

[@akirak1871]

I'm not even religious (not in a theistic sense, anyway) but I really can't deny that our society would be better off on the whole if most people had stuck with Christian values. Humans need to recognize how small we really are in the universe, come to terms with our own mortality, and have the mindset to persevere through hardships. I think practically every problem we're facing today is at least greatly exacerbated (if not caused outright) by ditching what was previously the source of morality and meaning and replacing it with nothing ("new Atheism" has made some efforts at providing this, but I'll be gentle and say I'm "unimpressed" with what they've come up with so far).

[@b_8103]

How to protect oneself?

[@c.galanza3939]

The "Lost Decade" where the US forced Japan to increase the value of their currency resulting to significantly affecting their export based economy. Lol

[@techgamer4710]

You can print notes but cannot print resources

[@catcollision8371]

"Creature From Jekyll Island" is an important book.

[@latinhellas6383]

A sovereign entity with the power to issue its own currency cannot go bankrupt technically in the sense that it cannot make payments on debt unless a political decision is made to break up or reduce the sovereignty of said entity, and/or it has outstanding debt in another currency that it cannot generate through trade and investment, including domestic asset sales (e.g. Greece). Another question is what is the value of new currency issue and debt payments in relation to economic assets (including population), and current production. On that basis, most countries of early industrialization have been in at least relative decline for decades, Japan arguably since the late 1980s and on a steeper path than, say, the US, and about the same as, say, Italy. On that basis, then, yes, Japan could well be on a path to irreversible decline and a sharp downshift in population, production, and income. Will it cease to be a sovereign entity and be taken over by others? The Chinese? Is anyone predicting such outcomes?

[@gunsort3242]

Guess that trilateral thing didn't work out.

[@shameless5868]

You scare the hell outta me. When you running for governor?👍

[@jinkazama7491]

A lesson on economics 101 for all the “World Renowned Economist”. You cannot print your way outta recession.

[@steveh7823]

That Japan even has an economy today is based on interest rate arbitrage. Borrow at 0% in Japan and invest overseas (UST etc) at 4%. Since the Yen collapsed from 110-120 to over 160/$ the cost of buying treasuries has gone up 30% and selling older treasuries priced around 2% is also loss-making. The only way forward is to buy high yielding/high risk US corporate junk bonds.

[@Peter-MH]

Same throughout recorded history. This is the modern equivalent of melting down the silver coins & minting twice as many with half the silver content. The outcome will be the same as always. Collapse.

[@artm8dk]

What is the timeline here ?

[@coleymoke6709]

An idea for videos, and in my considered opinion, it's a good one. Your longer videos, which are terrific, are too long for me to watch. Could/would you do the "short story version," a 5-minute edition which we could watch? And, as a follow on . . . would you consider being Trump's Vice President?

[@SBK_Sound]

The western economic markets tied to the petro-dollar are so highly manipulated that it's practically impossible to predict whether or when there will be a bankruptcy or any financial crisis.

[@demidvfedorov]

Mistake 260% of GDP doesn’t mean “twice what the govt brings in in tax revenue”. It’s way, way more than that.

[@NOLAgenX]

What an interconnected house of cards various nations are. Each has the potential to being others crashing down with them.

[@nitro2525k]

Why do we need to raise interest rates with 2% inflation? Tax revenues are at record highs every year, and the unemployment rate is 2.6%. The current account balance is in surplus at 25 trillion yen. How do you go bankrupt?

[@hex5874]

you want positiv inflation to keep the velocity of money up or your economy goes into cardiac arrest

[@lim5639]

US should pressure Japan not to sell more US Treasury Debts into the market. Instead, US should encourage Japan to increase its interest rates to attract the hot money into Japan, in order to support the depreciation of Yen.

[@nitro2525k]

In Japan, where inflation is only around 2%, there is no need to raise interest rates.

[@TheOtherKine]

They just finally managed to get rid of Floppy Discs just the other day LMAO

[@dannylo5875]

Technically is a better storage medium. Also can't be hacked.

[@legoguydude7069]

Why did we lose the petrodollar?

[@utcnc7mm]

Tick-Tick-Tick, when it happens it will be like throwing a rock in a pond.....ripple effect on the whole world!

[@oliveribanez6935]

This can be easily solve , the problem here is that government don't ask for it

[@Abdure]

1:56 to whom?

[@inquisitive8903]

Yupppp..... whom

[@RiseOfAsia]

Japan may be heading towards an economic crisis, but famous analysts like Gordan Chang and Peter Zeihan didn't predict the fall of Japan, instead they said it is China that is about to go bankrupt. 🤣

[@armorbearer9702]

I see. This crisis has the potential to put some serious friction between Japan and the US.

[@bonniegettingthrumyday2866]

Well- WE aren’t buying their stuff!!!

[@jeronimotamayolopera4834]

Blame the masses.

[@pigdictator4558]

You cannot print money in the name of prosperity.

[@Poco-me5eq]

Not a day too soon.

[@davidmartin7039]

If you print a 10,000 a 5,000 n a 1000 bill your economy is screwed