Japan's Growing Sovereign Debt Time Bomb

[HiPointDem]

6. This is the boilerplate from the US/West. They've been predicting Japan's demise because

of sovereign debt (borrowed from its people rather than banksters) for years.

They'd rather the japanese borrowed from the banksters, that's all.

And the new guy that was just elected is going to do some things the banksters aren't liking much. Stay tuned.

Even though Japan's debt is more than twice its GDP (about three times the size of the U.S. debt), there is no risk of default since its debt is in its own currency. In this way Japan is like the United States and the United Kingdom, and unlike Greece and Ireland.

In the worst case scenario, Japan or the United States would print lots of money and see inflation. Given that Japan has been flirting with deflation for almost two decades this doesn't seem like a plausible scenario, but in any case it is not the story of Greece being held at the mercy of the bond vigilantes who will not buy its debt.

Read more: http://www.businessinsider.com/everyone-should-read-floyd-norris-2011-3#ixzz2Gyoz6jTX

Japan borrows from its people at a low rate & lends to the US at a higher rate. It uses the spread to make money & repay its people.