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S&p Cuts Japan Sovereign Debt Rating To Aa Minus

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The stresses are growing in the system.

This seems to suggest that the markets don't believe you can solve a debt crisis with more debt.

I wonder how long before Japan's debt is considered the same as Ireland/Greece?

Isn't Japanese govt debt around 300% of GDP?

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I've thought for a while that Japan will be the first developed country victim of hyperinflation of this crisis.

As a nation of savers it will hit the population particularly hard.

Aren't they savers who've bought their own govts debt?

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Aren't they savers who've bought their own govts debt?

This is true its problem is an ageing population that has run out of savings and now need to spend (cash in debt) on healthcare. Japan now has to start going out to the market to finance its deficit.

Of course the UK has many problems but its debt has a long maturity and its trying to tackle its deficit (sort of)

Then there is US debt!!! :ph34r:

But basically all of the above is a bit like having a beauty contest for a load of old nags at the glue factory.

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Plenty of people have been saying for a while that Japanese public debt is unsustainable. Some of the same people have been ramping Japanese shares. If Japanese public flee bonds, does that mean they go into shares??

Yeah, if they're mad.

Gold and silver must be very cheap for the japs with their currency so high. That's where I'd put it.

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This is true its problem is an ageing population that has run out of savings and now need to spend (cash in debt) on healthcare. Japan now has to start going out to the market to finance its deficit.

Of course the UK has many problems but its debt has a long maturity and its trying to tackle its deficit (sort of)

Then there is US debt!!! :ph34r:

But basically all of the above is a bit like having a beauty contest for a load of old nags at the glue factory.

Which the Japanese and UK own a healthy chunk of! What a tangled web we've woven.

Glad I've gone tangible.

Edited by General Congreve

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Which the Japanese and UK own a healthy chunk of! What a tangled web we've woven.

Glad I've gone tangible.

Yep, its horrible! Yes I am glad too!

Correction almost over I think!

Bought some miners yesterday just before they popped!!

Edited by gravity always wins

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Is there bad news from the US that needs burying? Thats normally the only reason anyone gets downgraded these days.

Rating agency Standard & Poor's cut Japan's long-term sovereign debt rating on Thursday for the first time since 2002, saying the country's government lacked a coherent plan to tackle its mounting debt.

Surely using that justification the US should be downgraded also? From AAA+ to JUNK-

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Rating agency Standard & Poor's cut Japan's long-term sovereign debt rating on Thursday for the first time since 2002, saying the country's government lacked a coherent plan to tackle its mounting debt.

Strange that whilst the Japanese govt was busy accumulating this debt the rating agencies viewed this as a coherent plan that deserved AAA rating? Now all of a sudden the accumulation of debt isn't viewed as coherent or sustainable. The Japanese are still doing what they have been doing for 20 years.

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Surely using that justification the US should be downgraded also? From AAA+ to JUNK-

The only credible ratings agency on the planet (if there is such a thing) is a Chinese one that already has US debt at near junk status.

But yes US sovereign debt is junk.

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This situation has gone on for quite a while where Japan just piles up debt and everybody ignores it. I think the last ratings move for Japan was back in 2007 and was in fact an upgrade! However I notice that some are calling for a liitle perspective on this move.

Care is needed here as whilst Japan does have plenty of problems as I have indicated above they are slow movers in the main and this is unlikely to be something that blows up like the peripheral Euro zone crises. However there is a steady drip drip from the problems that Japan has and if current trends continue she is heading for potential insolvency.

Also there is the situation of her government bond yields which at a closing level of 1.24% this morning for her ten-year maturity represent an incredibly low-level if you look at the comparable ones from the US of 3.43%, the UK 3.69% and even Germany 3.19%. http://t.co/BAhWkyM

I guess we will have to see what happens....

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Anything to bring down the Yen is great news as far as I'm concerned. In 2009, the greatest swing between any two currencies in the world was Pound to Yen. When I lived and worked in Tokyo, at one point you needed 250 Yen to buy a Pound. Today that figure is 130 and I'm due to make a trip out there later in the year... :blink:

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Isn't it the case that we a third on that debt list? US at about number 7 or 8.

If Japan start repatriating money the carry trade might bring an interesting wrinkle to the miraculous recovereh in the Eurozone where their debt hasn't been hidden--its just magicked itself away.

The US problem is that they have been lining the pockets of China and the Arab states for too long. Effectively bankrolled most of the palaces in the sand and the HPI boom in the Chinese cities. We have contributed a fair share as we all know where most of the stuff we buy is made. But is this sinister? My guess is that the Chinese and the Arabs love to have their trouser pockets filled with western £, $ and Euros.

We, the EZ and ourselves have effectively made others rich. I wonder why they are complaining. Or are they NOT complaining and its just a few anti-west voices that "blame" the Western nations for enriching others? Anti-Europeanism etc.

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Isn't it the case that we a third on that debt list? US at about number 7 or 8.

Yes but its all about when the debt has to be rolled over in that respect we are in a much better place than the US. Admitedly its about the only thing in which we are better placed but lets be thankful for small mercies.

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  • 312 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% +
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      • Even
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      • up 5%



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