Japan- New Budget, Issuing Debt Worth More Than Tax Receipts 2nd year In A Row

[william the wie]

LC, a book from the 90s, "F.I.A.S.C.O." about the trading practices of Morgan Stanley (and other US banks) details how relatively honest US financial instruments were packaged to juice accounting statements worldwide for example the Greek deficit when it was applying for Euro membership. Japan has been using the US mortgage market to pretty up accounting statements since at least the 80s and maybe the 70s. There are literally trillions of writedowns to go before Japan hits bottom. China stopped publishing full accounting statements for state owned banks and enterprises in the 90s.

When these financial blackholes implode it will be the economic equivalent of nuclear holocaust as opposed to the shock and awe of the 2008 meltdown.

 

[loosecannon]

yeah well, show me the money.

I am still not convinced we were at the edge of Armageddon two years ago. If it didn't happen then despite overwhelming cause, and hasn't happened in Japan in decades (in fact deflation persists).........

Or put another way: If a handful of Wall Street banks were too big to fail surely Japan and the EU and the US are as well. Even China knows this and thus they won't pull the plug on us until they are self sufficient. They are in fact buying PIIGS bonds and maintaining their treasury reserves, even buying Yen in the face of western madness.