Japan’s Enormous Deficit

Japan has been pump-priming its economy for decades. Yet, it’s failing to stimulate its economic stagflation.

They have been able to do this because they are not as dependent as the U.S. on foreign countries to buy and keep owning their debt. The U.S. bond market depends to a much greater extent on other countries holding U.S. Treasury bonds.

The U. S. dollar has historically been more of a reserve instrument than the Japanese yen. Still, prices in Japan are high, and consumer and business conditions are dismal.

Japan will not be getting away with deficit spending too much longer. Reality will catch up with them as it will with the U.S. in time. ( See the Earl J Weinreb NewsHole® comments.)