Friday, October 10, 2008

Japan's Spending Binge

And that domestic spending had just about NO EFFECT on the economy. All they did was screw their future, Japan has one of the highest debt/GDP ratios in the entire developed world! Their debt is nearly 100% of GDP, for all the fuss made about the US debt, we're only at 67%.

Japan's reckless spending proves my point. A whole lot of useless and wasteful government spending was instituted. All they did was destroy their future. Once the Japanese economy becomes healthy again, interest rates will rise to above the current 1.8% or so, and they will have to start paying a substantial amount of interest. And for what? What did they get out of this government spending? Like the Great Depression, that government spending did nothing in the grand scope of things, Japan still is waiting for a recovery. The Nikkei just dropped below 10,000! Absolutely shocking. Back in 1989, it stood above 30,000. (Stock market prices are only one of many important indicators, I'm not suggesting they should be the only or even most important indicator of a nation's economic health).

No comments: