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Japan Sets Targets To Rein In National Debt

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http://news.bbc.co.uk/1/hi/world/asia_pacific/10372417.stm

Japan has set targets to rein in its national debt, the biggest in the industrialised world.

New Prime Minister Naoto Kan has made fiscal reform a top priority, saying that without it the country could face the risk of a Greece-style crisis.

However, the government has given no specific ideas of how it will reach its long-term goal of balancing its budget.

Japan also raised its growth forecast for the year to March to 2.6%, compared with an earlier 1.4% estimate.

That would be the first time the country's GDP had expanded by more than 2% since 2006.

Growth in the year to March 2012 is predicted to be 2%.

"Thanks to the government's stimulus packages, strengthening in business profitability and improvements in employment and household income are spreading to an increase in private demand," the Cabinet Office said.

"If this cycle continues, Japan's economy is expected to go on a track towards an autonomous recovery."

However, it warned that deflation was still a problem - with prices not expected to to stop falling until at least next year.

Confidence

Japan has been borrowing money for two decades, trying to bring its economy out of stagnation.

But although its debt is now estimated at about twice the size of its GDP, some economists believe the fiscal situation is not as bad as it appears.

This is largely because Japan has a trade surplus, and it is still able to borrow money at some of the lowest interest rates in the world.

But the government has acknowledged that if Japan has to borrow more from abroad, the higher interest rates demanded could tip the country into the abyss.

So basically the Japanese govt is full of hot air.

If Japan can't trade with the rest of the world then what happens? Boom?

Some economists appear to be idiots.

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http://news.bbc.co.uk/1/hi/world/asia_pacific/10372417.stm

So basically the Japanese govt is full of hot air.

If Japan can't trade with the rest of the world then what happens? Boom?

Some economists appear to be idiots.

the real idiots are the ones paying them and the ones who believe what they say

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Japan's economy is expected to go on a track towards an autonomous recovery

After twenty years the wrong policy is bearing fruit? Or maybe not, "expected" sounds like more fluff.

Dead lucky they embarked on ignoring their banking issues when overall the rest of the world were spending like lunatics with borrowed money, otherwise this policy may have been exposed early.

No such luck with US, UK, Ireland, Spain, Portgual, etc. etc. etc.

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  • 142 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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