Japan says to provide $60 billion in loans to IMF..but Japanese debt is a $14 trillion!
Finance Minister Jun Azumi said on Tuesday that Japan would provide $60 billion in loans to the IMF amid renewed concerns about Europe’s debt woes, a move that it hopes will encourage other countries to contribute resources.
Group of 20 finance leaders major economies will meet this week in Washington to discuss a plan to raise new resources for the International Monetary Fund (IMF) to contain the euro zone’s sovereign debt crisis.
“I am confident that many other countries will pledge contributions to the IMF,” Azumi told a regular news conference after a cabinet meeting.
Spanish 10-year government bond yields rose above 6 percent on Monday for the first time since the beginning of December, fuelling concerns that Madrid could fail to meet deficit targets as the country acknowledged it has probably tipped into its second recession since 2009.
That would raise the risk of the euro zone’s fourth-largest economy being pushed into seeking an international bailout.
Yesterday the Japanese Finance Ministry made a whopper of an announcement: in the year ending March 2013, total Japanese debt will surpass one quadrillion yen, or ¥1,086,000,000,000,000.This is roughly in line with the Zero Hedge expectations that by this March total Japanese debt would surpass one quadrillion yen. In USD terms, at today’s exchange rate, this is precisely $14 trillion. And while smaller than America’s $15.4 trillion (net of all post debt ceiling breach auctions), which was $14 trillion about a year ago, the GDP backing this notional amount of debt, which just so happens is greater than the GDP of the entire Euro area, is a modest ¥481 trillion, so by the end of the next fiscal year, Japan will have a Debt to GDP ratio of 225%. And that’s not counting all the household and financial debt. So prepare to add quadrillion to the vernacular. At this exponential rate of increase quintillion will appear some time in 2015 and so on. Yet the scariest conclusion is that as Bloomberg economist Joseph Brusuelas points out, America is not only next, it already is Japan. Actually scratch that, America is worse than Japan, which at least generated a real housing bubble in the years just preceding the onset of its multi-decade credit crunch, something not even America could do in comparable terms. More importantly, “the debt-to-GDP ratio of the U.S. recently surpassed 100 percent, and it did so in the four years after the onset of the recession, compared with the six years it took the Japanese debt-to-GDP ratio to do so.” The Japanese may be better than America in most things, but when it comes to destroying its economy, the US has no equal. Brusuelas’ conclusion: “If below trend growth is the most probable scenario in the U.S., the most likely alternative is that the U.S. economy is headed for a lost decade… or two.” So… go all in?
a sick joke really..how can they hand over more usless fiat money when they owe $14T?..its insanity..the IMF are doing the rounds right now..looking for donations from all g20 nations..coffers getting empty?