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“Japan’s government debt burden is astonishingly heavy…About 40 per cent of all tax revenues is spent paying interest on this debt, and that’s an interest rate of about 0.5 percent on the bonds. If the Bank of Japan stopped buying Abe’s bonds the interest rate would be about 2 per cent, and the Japanese government would have no funds to pay the interest…Ask yourself, what are the security consequences for Australia of a financially crippled Japan?...Given the reckless mathematics of Abenomics and the impossibility of reform in Japan we had better acknowledge that Australia faces graver risks than a falling iron ore price”
Source: Why Abenomics has become a failed experiment, By Andrew Thomson, Editorial Opinion, Australian Financial Review, Wednesday January 7th, 2015, page 39.
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