SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: carranza2 who wrote (93591)8/16/2012 9:05:05 AM
From: TobagoJack  Read Replies (1) | Respond to of 218265
 
China buying jgb to force Japan to buy t-bills

As capitol hill did not care for china manipulating rmb/usd, so china compels USA to fret over Japan manipulating yen/usd as and when

China can always make Japan pay debt even as USA may default on Japan at some stage



To: carranza2 who wrote (93591)8/16/2012 9:29:56 AM
From: elmatador  Respond to of 218265
 
Who has always said that population had to be replenished? Now the people discovered the connection people and economic growth. ten years ago I was telling that in the BBR thread.

Mass migration. Tax payer importation. It is all there. Canada 140 million. Australia 100 million. US half billion. Those were the figures I was throwing around.

Japan's percentage of "productive" population is declining faster than that of any other major economy (also discussed here). With restrictive immigration policies and low birth rates, the "vacuum" created by the aging boomers is not filled.

Japan's working age population % (source: GS)

Because of this decline in productive population, Goldman predicts that Japan's capacity to grow economically will become more constrained in the next few years.

Japan's growth forecast (source: GS)

At no point going forward is Japan expected to grow at 2%. So when should the government implement this tax increase? Some in Japan argue it should not be implemented at all because the last increase in 1997 ended up pushing the nation into a deflationary spiral.