Japan has the second lowest birth rate in the market world. Other qoute is that their life expectancy rate is rising. The elderly are speedily becoming the largest segment of Japan's population. 20 percent of Japan's citizen is now over 65 years old while here in the U.S. The 65 and older crowd constitutes only 12 percent. Not an insignificant number by any suitable but when you correlate the citizen size in the middle of the two, Japan's 20 percent is a foreseen, figure.
The low birthrate means a smaller workforce and smaller tax base. As the cheaper contracts, businesses pay less taxes. Their aging community consume communal security, condition care and pension benefits. These are costs paid out directly by the government in inheritance entitlements.
Japan's recession began 20 years ago. Since that time, the government has poured trillions into their banking principles in bailouts and economic stimulus. This month the government will give every citizen a check for 12,000 yen (approx. 0) in Other misguided exertion to stimulate the economy. Other billion down the drain.
Japan has managed to yield the world's most debilitating debt and funds deficit. Japan owes .8 trillion to it's creditors (7,000 per person) and expects to borrow an further .1 trillion to stay solvent.
Government debt to Gdp is the ratio used to correlate a nations indebtedness. In the Uk, the debt to Gdp ratio is 48 percent. The U.S. Has a debt to Gdp of 75 percent. Japan has a debt to Gdp ratio of 187 percent and will growth to 217 percent by the end of 2009. Japan's cheaper is in shambles.
They have practically an entirely export-based cheaper which has been severely depressed with the global recession and deleveraging. In the past six months of this year Japan has lost 0 billion dollars from declining exports, their first trade deficit in 12 years. With every 1 percent growth in the value of the yen it loses 0 billion in export revenue. It has no other alternative except a wholesale devaluation of it's currency. It has come to be clear that the Japanese government will never be able to pay back the money it owes.
The Japanese Yen is About to Crash