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Debates Forum

  1. 27 Mar '13 00:47
    Is quantitative easing a method of easing a country's debt burden? This seems to be the choice method of making debt easier to repay while keeping interest rates under control.

    http://www.ehow.com/info_8117368_debt-handled-currency-devaluation.html

    http://www.businessweek.com/articles/2013-01-24/the-surprising-upside-to-japans-currency-war

    When countries resort to quantitative easing is it a symptom of coming debt default?
  2. Standard member DeepThought
    Losing the Thread
    27 Mar '13 02:15
    Originally posted by Metal Brain
    Is quantitative easing a method of easing a country's debt burden? This seems to be the choice method of making debt easier to repay while keeping interest rates under control.

    http://www.ehow.com/info_8117368_debt-handled-currency-devaluation.html

    http://www.businessweek.com/articles/2013-01-24/the-surprising-upside-to-japans-currency-war

    When countries resort to quantitative easing is it a symptom of coming debt default?
    No, the countries that have done it are the most economically powerful. There is no chance of default, in the case of the U.K. the Bank of England can simply print money to avoid it. A little inflation makes the debt go way, the debt go away (to the tune from Mary Poppins)...
  3. 27 Mar '13 04:19
    Originally posted by DeepThought
    No, the countries that have done it are the most economically powerful. There is no chance of default, in the case of the U.K. the Bank of England can simply print money to avoid it. A little inflation makes the debt go way, the debt go away (to the tune from Mary Poppins)...
    How about the tuneage from chitty chitty bang bang?
  4. Standard member bill718
    Enigma
    27 Mar '13 10:52
    Originally posted by Metal Brain
    Is quantitative easing a method of easing a country's debt burden? This seems to be the choice method of making debt easier to repay while keeping interest rates under control.

    http://www.ehow.com/info_8117368_debt-handled-currency-devaluation.html

    http://www.businessweek.com/articles/2013-01-24/the-surprising-upside-to-japans-currency-war

    When countries resort to quantitative easing is it a symptom of coming debt default?
    I don't think this signals a debt default. Slowly, more Americans are returning to work. As this continues, America's tax base grows, and more revenue will be available in which to pay down the deficit. This may take decades, but it happened under Bill Clinton, and it will happen again.
  5. 28 Mar '13 12:00
    Originally posted by DeepThought
    No, the countries that have done it are the most economically powerful. There is no chance of default, in the case of the U.K. the Bank of England can simply print money to avoid it. A little inflation makes the debt go way, the debt go away (to the tune from Mary Poppins)...
    Japan's Debt as a percentage of GDP is 233.1 percent. I'd say that their currency devaluation and debt are not a coincidence.
  6. 28 Mar '13 14:02
    Originally posted by Metal Brain
    Japan's Debt as a percentage of GDP is 233.1 percent. I'd say that their currency devaluation and debt are not a coincidence.
    So why now?
  7. 29 Mar '13 00:54
    Originally posted by KazetNagorra
    So why now?
    Japan has been propped up by the US for decades after initial fears that Japan was going to "own" the US. The same fear that is being pushed now but with China substituted.

    What is different now is that the debt of the US is now nearly as serious as the Eurozone, or the far east. Hardly any nation on the planet doesn't have debt/spending issues. How about the relatively stronger, high standard of living northern European nations you often refer to? What is their debt situation?

    With families, you can only live so long on credit. Eventually, the card or cards get maxed out, the interest eats into spendable income and bankruptcy is the endgame. How can it be different with nations?
  8. 29 Mar '13 02:27
    Originally posted by KazetNagorra
    So why now?
    Why not now?

    Should Japan wait for the debt/GDP ratio to get up to 300%? As norm pointed out, this cannot last forever. Japan's yen is not the world reserve currency. They cannot export their inflation like the USA can.

    http://business.blogs.cnn.com/2013/02/28/james-baker-says-u-s-is-broke/
  9. 29 Mar '13 08:30
    Originally posted by normbenign
    Japan has been propped up by the US for decades after initial fears that Japan was going to "own" the US. The same fear that is being pushed now but with China substituted.

    What is different now is that the debt of the US is now nearly as serious as the Eurozone, or the far east. Hardly any nation on the planet doesn't have debt/spending issues. How ...[text shortened]... s into spendable income and bankruptcy is the endgame. How can it be different with nations?
    The yen has climbed strongly, for example, from 2000 to 2002, and from 2005 to 2007 with respect to the dollar. During this time Japan already had a huge debt. It should be noted that because of low inflation of the yen and the fact that most Japanese debt is held domestically, their debt issues are not nearly as serious as for instance Italy or Spain, who have much lower debt to GDP ratios. However, with the path the current Japanese government appears to be on, and an apparant refusal to deal with urgent socio-economic issues, some serious trouble looks to be near.

    The Northern European countries have sound public finances. Norway has no debt, Sweden has a debt to GDP ratio of 33%, Denmark 45% and Finland 53%. All are triple-A rated (for what that's worth). With the recent trouble in southern Eurozone economies, many investors seeking safe investments have moved their money from the South to the North, resulting in record low yields on bonds issued by "safer" nations like Germany. None of these countries are going to default any time soon.
  10. 29 Mar '13 11:37
    Originally posted by KazetNagorra
    The yen has climbed strongly, for example, from 2000 to 2002, and from 2005 to 2007 with respect to the dollar. During this time Japan already had a huge debt. It should be noted that because of low inflation of the yen and the fact that most Japanese debt is held domestically, their debt issues are not nearly as serious as for instance Italy or Spain, ...[text shortened]... by "safer" nations like Germany. None of these countries are going to default any time soon.
    There you go again with your distraction tactics. Why are you talking about the past instead of now? The yen is dropping right now, not climbing.

    I realize that ignoring how things are right now is the only way you can appear to make sense, but we are not buying it.

    I notice you have not said anything about James Baker and the comments he has made about how the USA would be Greece if not for the US dollar being the world reserve currency.

    Europe has problems. We already know that. Tell us something we don't know.
  11. 29 Mar '13 11:41
    Originally posted by Metal Brain
    There you go again with your distraction tactics. Why are you talking about the past instead of now? The yen is dropping right now, not climbing.

    I realize that ignoring how things are right now is the only way you can appear to make sense, but we are not buying it.

    I notice you have not said anything about James Baker and the comments he has mad ...[text shortened]... eserve currency.

    Europe has problems. We already know that. Tell us something we don't know.
    Because the past indicates that the reasoning "Japenese debt is high, therefore the yen is dropping in value" is flawed. The recent fall of the yen is more likely related to comments by the BoJ director and the election of the Shinzo Abe.
  12. 29 Mar '13 11:45
    Originally posted by KazetNagorra
    Because the past indicates that the reasoning "Japenese debt is high, therefore the yen is dropping in value" is flawed. The recent fall of the yen is more likely related to comments by the BoJ director and the election of the Shinzo Abe.
    Explain yourself. I'm not going to let you make mere claims without asking you to back them up with facts and a source of information. Enough with your digression tactics. You always do this when your position is weak.

    Step up and debate fairly.
  13. 29 Mar '13 11:50
    Originally posted by Metal Brain
    Explain yourself. I'm not going to let you make mere claims without asking you to back them up with facts and a source of information. Enough with your digression tactics. You always do this when your position is weak.

    Step up and debate fairly.
    Japan's new Prime Minister Shinzo Abe has promised steps to weaken the yen to help revive Japan's sluggish economy.

    He has even suggested that Japan's central bank should print "unlimited yen" to help stoke inflation.

    Mr Abe has also called upon the central bank to boost its stimulus measures and undertake aggressive monetary easing to spur economic growth.

    That includes setting an inflation target of 2% - double that of the Bank of Japan's (BOJ) current target.


    http://www.bbc.co.uk/news/business-20849204
  14. 29 Mar '13 16:18
    Originally posted by KazetNagorra
    Japan's new Prime Minister Shinzo Abe has promised steps to weaken the yen to help revive Japan's sluggish economy.

    He has even suggested that Japan's central bank should print "unlimited yen" to help stoke inflation.

    Mr Abe has also called upon the central bank to boost its stimulus measures and undertake aggressive monetary easing to spur ...[text shortened]... nk of Japan's (BOJ) current target.


    http://www.bbc.co.uk/news/business-20849204
    All you have done is confirm the yen is being devalued intentionally. That does not make my claim any less credible.
  15. 30 Mar '13 00:26
    Originally posted by KazetNagorra
    The yen has climbed strongly, for example, from 2000 to 2002, and from 2005 to 2007 with respect to the dollar. During this time Japan already had a huge debt. It should be noted that because of low inflation of the yen and the fact that most Japanese debt is held domestically, their debt issues are not nearly as serious as for instance Italy or Spain, ...[text shortened]... by "safer" nations like Germany. None of these countries are going to default any time soon.
    It might be useful to compare Norway with its close neighbors with similar cultures and politics. Even Debt ratios of 33% to 53% are troubling. The US was there not too many years ago, but we're approaching 100%.