GPIF Worried About Japan's Public Debt?

Leo Kolivakis's picture

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LawsofPhysics's picture

extend, pretend, extend, pretend...  the mantra continues.  Transparency is non-exsistent in any of this because of "mark to unicorn" accounting.

ZackAttack's picture

We are Japan, with a 10 year lag.

RockyRacoon's picture

I tend to agree, but with a shorter time frame.

With many economists anticipating economic softness in the first half of 2010, perhaps even a quarter of negative growth, this is hardly the time for premature withdrawal.

We will be hearing more and more of the same rhetoric in the U. S.

And I'm not even going to go to the obvious sexual imagery.

Weisbrot's picture

why worry, they can go on the dollar standard like zimbabwe did

falak pema's picture

It's mind boggling... who is NOT printing trillions these days. Even Khaddafi is printing oil checks to mercenaries.

I think i'm going to hang on to my family's silver candelabra after all...

honestann's picture

The setting sun.

gwar5's picture

He should just BTFD.

Seer's picture

TBTS - Too Big To Succeed  eventually there won't be enough growth to suck off of and all these pension funds will go belly up.

Zero Govt's picture

+1  ...this pension plan should be sliced into 100's of smaller operations to reduce systemic risk and improve performance. The size of this big slow dinosaur is a huge, single structure risk and seed for its downfall... but Mr Mitani thinks his fund size shouldn't be split (despite its under performance) but calls out systemic risk in Govt finances, another big diseased dinosaur problem no less?!! 

PulauHantu29's picture

Listen to the latest Kyle Bass interview posted a few days ago here, on Zero Hedge.

Japan is in Big Trouble and printing trillions of (more) yen will just make it worse according to Mr Bass.

Dirtt's picture

"I'm a stickler for pension governance and believe in transparency, so I don't understand why GPIF's investment policy isn't made public."

Elementary Watson.  They are fucking LIARS.

This will end badly.  The oligarchs children and grandchildren have an ugly future to live.   The question is where can they hide. Plenty of places are set in stone.  Living behind stone walls is what kind of future?

Malfeasance of biblical proportions in the end has always had an end game. I'm chillin' in paradise. Growing my food.  All is good.

suteibu's picture

All of these people are scaring the public to help the Keidanren and the Kan administration sell its "open Japan" scheme which includes joining the Trans-Pacific Partnership free trade agreement (the Obama admin is hot after this as well, what with Japan's households knowing nothing about a US-style FIRE economy and holding ~$14 trillion in assets ripe for the picking) and raising the consumption tax to in stages (first 10% then 15%, capping at somewhere around 22% according to the Keidanren)

Everybody that stands to gain from free trade and tax hikes is pushing this same meme.

knukles's picture

Sung to the tune of; "I'll be with you at seppuku time."

Yancey Ward's picture

Guess GPIF is finally understanding that the only people who can pay off on those bonds they hold are the Japanese saving in the plan.  I wonder when the pensioners themselves realize it.

fx's picture

The guy gives japan another 5-10 years? When someone in his position says so, you bet he knows darn well the countdown is already much shorter than 5-10 years.

The author's notion that the new trend of net-outflows (demographics) didn't matter because "it remains incremental" is a funny one. How about the "incremental" jump in indebtedness each year due to outsized fiscal deficits?

The collapse of Japan's public finances may still be a few years away, but it is one of the surest things out there - the govt has little room to extend and pretend. the markets will react and anticipate "day x" well in advance. Once they do it, boy, will it shake the very foundations of the global financial markets! Anybody who is NOT preparing for that pretty soon, will get killed by that tsunami. And of course, you will then hear and read "nobody could have foreseen it was coming so soon" aplenty.