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Will Japan be able to recover?

Japan has the largest national debt relative to its economic output of any economy of the world 20o% of GDP and was set to reach 228% by the end of this year. Virtually all manufacturing activity has shut down. They are completely dependent on foreign oil. They have no natural gas, no oil and a very small coal mining capabilities.
The amount Japan needs to borrow this year is the kind of number that just makes you say "Holy shit" With the maturing debt that needs repaid and new borrowing to finance the deficit, Japan needs to borrow around a third of its $5.5 trillion GDP, excluding very short term debt, or more than half its GDP including short term debt.
Japan is virtually on the edge of total collapse of their economy now. Does this stop and make you wonder, with the debt the US is amassing and the future payments on it, what would happen to us if we had a disaster on of that magnitude? It will happen again, be it natural disaster or terror. And they want to just keep piling the debt on. The Japanese economy having operated on the keynesian model since the early nineties should serve as an example to the US. But apparantly it hasn't

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Carpy

Asked by Carpy at 4:08 PM on Mar. 14, 2011 in Politics & Current Events

Level 39 (114,053 Credits)
Answers (13)
  • The Prime Minister has called this the worst disaster since WWII. They did come back from that. Europe came back from the same war; in fact the loser came back with the strongest economy!

    I'm trying to remember the interview I heard on this idea of recovering from great adversity... it was before the quake... but I seem to recall the person being interviewed maintaining that such adversity was actually a GOOD thing.
    gdiamante

    Answer by gdiamante at 4:12 PM on Mar. 14, 2011

  • Does this stop and make you wonder, with the debt the US is amassing and the future payments on it, what would happen to us if we had a disaster on of that magnitude?

    Considering Japan is the size of California would it even be possible for us to have a similar event that would be to that level across the entire USA that wouldn't have us kissing our butts good-bye to point our debt would be a moot point?
    Charis76

    Answer by Charis76 at 4:16 PM on Mar. 14, 2011

  • The Prime Minister has called this the worst disaster since WWII. They did come back from that.

    They came back because the US rebuilt them. And the allies rebuilt Europe. It wasn't free and Japan is already in very serious trouble without this disaster.
    Carpy

    Comment by Carpy (original poster) at 4:17 PM on Mar. 14, 2011

  • Considering Japan is the size of California would it even be possible for us to have a similar event that would be to that level across the entire USA that wouldn't have us kissing our butts good-bye to point our debt would be a moot point?

    How many 9-11 elevens do you think our economy could withstand now?
    Carpy

    Comment by Carpy (original poster) at 4:19 PM on Mar. 14, 2011

  • How many 9-11 elevens do you think our economy could withstand now?


    Probably not many at all,  I was taking your words literally in the sense of a natural disaster that would have the same effects.

    Charis76

    Answer by Charis76 at 4:30 PM on Mar. 14, 2011

  • It will be years before they recover because not only did they have the earthquake, but they had a tsunami and then there are the nuclear reactors to consider. All that combined heaps a very heavy burden. The US is not in a position to send millions of dollars over there and our people here are also in the midst of our own recovery economically. And, let's not forget that our own shores, California, was affected by this same tsunami. We will need to help our own at the same time. We also have massive flooding in NJ, snow will be melting in the higher elevations to make for mudslides and our own weather catasrophies will begin anew. So, Japan is, in a way, kind of out on a limb. Many other countries at this same time are not in a position to send billions either. It is very sad all around.
    foreverb3

    Answer by foreverb3 at 4:31 PM on Mar. 14, 2011

  • I have to think it will. The Japanese are resilient people. I just have a gut feeling, which is far from scientific, that Japan can recover from something worse than an earthquake/tsunami, economic woes, or anything else.
    jesse123456

    Answer by jesse123456 at 4:32 PM on Mar. 14, 2011

  • Yes. They can recover and they will by doing what it takes. However, their recovery could have been much easier and faster if they weren't carrying the debt burden that they had before this event. A lesson for the US, indeed. Why stretch yourself so thin and pile on so much debt that you can't handle a mass emergency? It seems like very very poor planning. Yet, people live their individual lives in this manner, how could we expect more from a government? (Although we definitely should.)
    Mom2Just1Kiddo

    Answer by Mom2Just1Kiddo at 4:42 PM on Mar. 14, 2011

  • Yes, they will recover and the US could get a boost too, if only we had a BUSINESSMAN in the WH. But no, we got a golfer..............wannabe
    jewjewbee

    Answer by jewjewbee at 5:38 PM on Mar. 14, 2011

  • yes i thik they will recover but it will be a long and sad road along the way like all natural disasters.
    smfell99

    Answer by smfell99 at 5:48 PM on Mar. 14, 2011

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