Holding The Inevitable At Bay
I was looking for figures on Japan’s budget for Fiscal Year 2012/2013, which starts April 1.
I found the following:
HIGHLIGHTS: Japan’s 2012/13 Budget Meets Targets With Sleight Of Hand (December 23, 2011)
“The primary budget deficit, which excludes debt servicing, is 22.3 trillion yen… Tax revenues are seen rising to 42.3 trillion yen.”
But we know the real budget deficit would include debt servicing. How much is that?
Insight: Japan Slowly Wakes Up To Doomsday Debt Risk (February 17, 2012)
“It costs Japan half of the country’s tax income just to service its debt.”
OMG! Half of income just to service debt!
But then here’s another quote from the article linked to just above:
“But to some economists who have followed Japan for years, the frustration is that the country has yet to solve its underlying problems of slow economic growth and stubborn deflation. As long as those conditions persist, it will be difficult to crawl out from under the debt burden.”
Wait… If the Bank of Japan keeps printing to keep interest rates low, how come they keep having slow economic growth and stubborn deflation? Hmm…