Japan’s Debt Crisis, Worse than the US and Europe, Hidden From the World
By Gordon Duff, Senior Editor
While massive debt in the US has been in the world news and the failure of austerity measures to stabilize the Euro have been continually reported, Japan has gone under.
Today, Fitch lowered Japanese foreign currency rating to near junk bond status. Japan had previously fallen to AA and is now down to “A,” a level unacceptable to a nation that most still consider a world “super-economy.”
The denial, of course, is that Japan will never recover from the Fukajima disaster and if we are honest, eventually world birthrates from the massive radiation leak that continues to this day will be a very real but unpleasant cure of a burgeoning world population.
Sterility and a worldwide “cancer cluster” will stem population growth.
As for Japan, this isn’t the end, further cuts in their credit rating are faced soon as their debt level continues to spin out of control, now at 239% of GNP, highest of any advanced nation. Japan makes Greece look successful and “well planned.”
“The downgrades and negative outlooks reflect growing risks for Japan’s sovereign credit profile as a result of high and rising public debt ratios,” Andrew Colquhoun, head of Asia-Pacific sovereigns at Fitch said in a statement.
Moody still keeps Japan at AA because of recent measures such as the doubling of the national sales tax. However, there is little chance that any plan to stabilize Japan will come soon as the government there is split on solutions and the Japanese have no history of dealing with austerity measures realistically.
We are seeing a similar reaction in France where Prime Minister Hollande has sworn to spend his nation out of debt. We wish him good luck with that.
There is one “however” that we might add.
A realistic look at world currency markets indicates a full scale crash of western currencies occurred in 2007, a “train-wreck” never adequately reported, replaced by stories of “bail outs” without backing by adequate reforms.
In fact, the financial crimes of the Bush era and their renewal are increasingly the subject of the first “signs of life” from the Obama administration, where serious investigations and prosecutions may begin in earnest, of course, during an election year.
Japan owns up to $10 trillion in public debt and hundreds of trillions in toxic derivative debt it plans to continue to shield from scrutiny.
Consider them as having applied for “third world” status, soon to be joined to so many others.
———————————
Addendum
Political stability issues on the Korean peninsula, both within the South Korean government and between the South and North are totally “out of hand.” The reality of a new Korean War is too close at hand, something unreported, something based on behind the scenes manipulation by China and massive diplomatic failures by South Korea.
At one time, both Russia and Japan had the potential to become stabilizing influences in the region. Now, all that is left is the potential for mayhem, leaving only Hong Kong, Singapore and the Anzacs as viable.
The covert militarization of China, twice America’s secret estimates, three times its public estimates, and their unwillingness to exhibit mature leadership in regional affairs has made them a liability.
Combining this with the arms race in South Asia, Pakistan, thought of as a Chinese client state and India, far overreaching its military needs unless it plans to begin its own “Cold War” with China, only add to the chaotic potential.
Gordon Duff posted articles on VT from 2008 to 2022. He is a Marine combat veteran of the Vietnam War. A disabled veteran, he worked on veterans and POW issues for decades.
Gordon is an accredited diplomat and is generally accepted as one of the top global intelligence specialists. He manages the world’s largest private intelligence organization and regularly consults with governments challenged by security issues.
Duff has traveled extensively, is published around the world, and is a regular guest on TV and radio in more than “several” countries. He is also a trained chef, wine enthusiast, avid motorcyclist, and gunsmith specializing in historical weapons and restoration. Business experience and interests are in energy and defense technology.
ATTENTION READERS
We See The World From All Sides and Want YOU To Be Fully InformedIn fact, intentional disinformation is a disgraceful scourge in media today. So to assuage any possible errant incorrect information posted herein, we strongly encourage you to seek corroboration from other non-VT sources before forming an educated opinion.
About VT - Policies & Disclosures - Comment Policy
