Japan's total debt hits record ¥1,317 tril in 2024

With a shrinking population the burden per capita continues to increase.

Every year always debt record for Japan, last year too.

https://english.kyodonews.net/news/2024/02/033cbb6f0c6e-japans-total-debt-swells-to-record-128645-tril-yen-in-2023.html

¥1,317 tril' means nothing to 99% of the population. Why not say in terms of ¥ per mean taxpayer, then people would have an understanding of the scale of the mismanagement of the economy. Or perhaps that's exactly what the gov' wants - an uninformed population.

$9 trillion compared with the US $33 trillion. It is owned by domestic investors, including Japanese banks and private savers. Interest payments are 12% of the budget.

Most of Japan's debt is to itself. Bank of Japan is Japan.

Also, Japan is the world's largest creditor.

But nothing is done to reduce the debt

well we can expect further sales tax hikes. Give it time! It’ll come! The second arrow in dealing with this is “inflation “ they’ll want that to continue to deflate the value of that debt by using inflation. Finally a tad more immigration to bring in younger tax payers and consumers. MMT is interesting but if my brother borrows money from me he still has to pay it back. If the JPN gov borrows money from its residents, they’ll still want to back. But those BoJ interest rates can’t go up too high either. Hence inflation is needed to reduce the amount as a percentage of GDP. But never listen to any politician who tell us “we mustn’t have debt” for the next generation. They’ve had debt for centuries. That’s just rubbish. In 20, 30 years they’ll print more, to cover the debt from 2010, allow inflation to do the work, and rinse and repeat. That’s one advantage of such poor returns on Japanese bonds.

didouToday  09:23 am JST

But nothing is done to reduce the debt

They are! It’s called inflation! People thought inflation on worked for their salary , their mortgage and price hikes. They never see national debt as part of that “equation”. I wonder if all the moaners about deflation and no wage rises are the very same people moaning about inflation andnot getting a wage raise. I expect sales tax to increase further or widened.

Which country in the world has no rampant debt??

If the weak yen could improve our exports, and investors then we could bring those dollars etc back, and get more yen, putting more in the treasuries coffers and more for investors But a weak yen means we’d pay more for imports. And if trumps drill baby drill bring down the cost of gas etc that may help. I guess you choose your poison.

Which country in the world has no rampant debt??

Norway, it's sovereign wealth fund is worth USD 1.8 trillion. Switzerland is around 32% debt-to-GDP.

Norway, it's sovereign wealth fund is worth USD 1.8 trillion. Switzerland is around 32% debt-to-GDP.

Norway invested wisely with it's income from the North sea being invested into hydro. hence developing it's social support system. Any of you super googles whatever out there want to study Norway's current tax rates, population changes, XR movement, to Japan, history tells the future! Pity that the UK stuck to history without realising the future was coming. Suisse, well the population controls the gov, continual referendums that attract the monied persons, just compare the housing prices. GDP??? where from?

Look - if we each pitch in just 10.5 million yen, we can nip this thing in the bud! Of course, families with 3 children are in for 52.5 million, but we all gotta do our part!

Stop spending money you don't f'n have! Why is this SO HARD for governments to do!?

The vast majority of this debt is Japanese debtors owing Japanese creditors. Essentially, nothing to be overly concerned about.

Having a huge foreign debt would be a different story - then you'd be at the mercy of changing exchange rates etc.

Foreign markets may be insulated from the shock, thus this mantra of foreign analysts saying, “No big deal, Japan’s debt is owned domestically.” For Japanese people, it’s a big deal. The money in their postal savings accounts and bank accounts is tied up in the debt. Japan’s people suffer inflation amid a stagnant economy. They face the loss of wealth if (when) the government freezes savings to prop up the debt.

Stiffing foreign investors would tank a nation’s currency, but Japanese people are impoverished whether the debt is foreign or domestic. A debt is a debt. It’s either repaid or defaulted. If repaid, it’s either through economic growth or monetary inflation. Japan doesn’t have economic growth, so the options are default or inflation. One way or another, people’s savings are erased.

the money in their postal savings accounts and bank accounts is tied up in the debt.

That's their choice. It's got nothing to do with Japan's macro situation. Individuals in Japan can easily invest in the S&P500, Nasdaq or anything else if they want in tax-advantaged accounts promoted by the government.

Their tax-free returns on such assets puts them in an even better place than people in the US, as the cost of living is much lower here and they gain from the stronger dollar. In my case, my unrealized gains from investments in NISA, IDeco and non-registered accounts this year exceeded my Japanese salary. A great situation to be in.

owzerToday  03:01 pm JST

Look - if we each pitch in just 10.5 million yen, we can nip this thing in the bud! Of course, families with 3 children are in for 52.5 million, but we all gotta do our part!

Stop spending money you don't f'n have! Why is this SO HARD for governments to do!?

cause they borrow it to invest in roads, railways, infrastructure, schools sewer systems, water systems power stations., etc etc and to pay for things and subsidies services and things many enjoy but may not make a profit it can bring value to society. Then they allow inflation to reduce the amount. Then the sell them off to private companies. Then they rinse and repeat this . That why they sell bonds and we hold them for twenty or thirty or forty years.

JeffLeeToday  04:37 pm JST

the money in their postal savings accounts and bank accounts is tied up in the debt.

That's their choice. It's got nothing to do with Japan's macro situation. Individuals in Japan can easily invest in the S&P500, Nasdaq or anything else if they want in tax-advantaged accounts promoted by the government.

that only works if and only if you earn enough. And 1100 yen an hour isn’t a lot. And you can’t touch that money for 40 or 50 years because you’re actually (supposed to) save for your pension. Reducing the government burden. Sadly the government just shift that debt onto something else, eg education, defence, health care.

Abe234

that only works if and only if you earn enough.

Japan's households' financial assets have been at record highs during the last few years, with most of the money in cash, Japanese govt bonds (that pay close to nothing) and life insurance. Those households chose to use their ample savings that way. And, by the way, that has nothing to do with Japan's fiscal debt.