Japan vs US debt to GDP ratio

[Beet]

US:



Japan:



http://www.thoughtofferings.com/2009_04_01_archive.html

[opebo]

So in other words we have 20 years of zero growth, deflation, and suicides to look forward to.

[Beet]

No; in other words, the stagnant performance of the Japanese economy since the mid 1990s can be explained by massive private sector de-leveraging that somewhat outweighed public sector leveraging. From 1998 to 2008, they delevered from 345 debt to GDP to 283, while maintaining 5-6% unemployment and a steady level of GDP.

This is a somewhat less bleak picture than stagnant economy and skyrocketing debt. I wouldn't worry as much about suicide; Japanese culture has more of a tradition of suicide in the first place.

[opebo]

No; in other words, the stagnant performance of the Japanese economy since the mid 1990s can be explained by massive private sector de-leveraging that somewhat outweighed public sector leveraging. From 1998 to 2008, they delevered from 345 debt to GDP to 283, while maintaining 5-6% unemployment and a steady level of GDP.

This is a somewhat less bleak picture than stagnant economy and skyrocketing debt. I wouldn't worry as much about suicide; Japanese culture has more of a tradition of suicide in the first place.

So in other words, the Japanese condition of the last 20 years is considerably better than we can hope for.  Probably true.

I think you will see a lot of suicide due to economics in the US.  Poverty-based suicide is common around the world.

[Swing low, sweet chariot. Comin' for to carry me home.]

China simply underbid Japan for America's manufacturing outsourcing