Japan admits "We are worse than Greece"

While the world was fixated on the European Union’s bailout of bankrupt Greece, across the ocean on the other side of the world is an even bigger fiscal disaster.
Tyler Durden of ZeroHedge writes on March 13, 2012, that according to a Bloomberg report, a Japanese Ministry of Finance official said that “Japan is fiscally worse than Greece.”
At a recent conference in Tokyo, Yasushi Kinoshita disclosed Japan’s 2011 fiscal deficit was up to 10% of the country’s GDP, and its debt-to-GDP ratio has soared to over 230%.
Durden observes that since a large amount of Japanese government bonds are held domestically, this means the Japanese financial system is much more vulnerable to fiscal shocks – especially oil and other energy pricesthan Europe.
It wasn’t that long ago — in the 1980s — when Japan was touted as the East Asian Miracle that would surpass the United States to become Number One. But just when some Japanese were crowing that Japan could “say no” to America and would no longer be content with being America’s kobun, its economic bubble burst, casting the country into a recession that spanned the 1990s, from which it is still struggling to emerge.
As the world’s 3rd largest economy (by nominal GDP), 4th largest exporter and 4th largest importer, Japan’s worse-than-Greece fiscal woes are sure to have global repercussions.

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Ed Haskell
8 years ago

The two big differences are that almost all of Japan’s debt is owned by its citizens and they have the power to print their own currency. That has sustained their anemic economic situation for two decades, but soon they will have to borrow outside of their country and borrowing costs will be much higher. Demographics is also a big negative in Japan, as it is in much of Europe.

8 years ago

too bad we can’t export obama to japan maybe they could use a little
hope and change..

Alice Wolf
8 years ago

Relieve Barack Obama from his post, reinstate Glass Steagall, have Congress to utter credit, and then form treaties with other countries that will allow our Constitutional economic model to restore their human economies along with ours. Otherwise, the oligarchs will have us all involved in their lovely thermonuclear war so that there will never be any competition to their dismal monetary system. When they emerge from their “bunkers” they may be rather surprised……………to say the least.