Japan Resumes Hyprintspeed Part 2: Presenting.... One QUADRILLION

Part 2 of our "Japan resumes hyprintspeed speed" series comes courtesy of The Privateer's Bill Buckler who has discovered that quadrillion is the new black.

The latest projections from the Japanese Finance Ministry regarding the fiscal year which started on April 1 make for sobering reading. They say that Japan’s “public” (funded) debt will probably rise by 5.8 percent this year - to 997.7 TRILLION Yen ($US 12.2 TRILLION at current exchange rates). Should these projections be even slightly on the optimistic side - and government financial projections always are - then Japan could easily be looking at a public debt of 1,000 TRILLION Yen by March 31, 2012.

There is another way of expressing 1,000 TRILLION. It is the same as ONE QUADRILLION.

The sheer magnitude of these numbers has long been a talking point for the watchers of international finance. Now, they are becoming very nervous indeed. The OECD has recently “urged” the Japanese government to “do something” about their deficits, especially in the wake of the earthquake disaster. Noting that Japanese sovereign debt is about to hit 204 percent of GDP, they suggested that Japan’s current sales tax be “at least” doubled from its present 5 percent to 10 percent. The Japanese Foreign Ministry politely declined to comment on this suggestion, contenting themselves with assuring the OECD that - “We will continue to work to maintain and secure trust in Japanese government bonds.”

At this, a line from Rosencrantz and Guildenstern are Dead comes to mind: "Eternity's a terrible thought. I mean, where's it all going to end?" While this has been mostly a rhetorical question over the ages, G7 central planners are set to provide a definitive answer very soon.

(and people worry about the "bubble" in precious metals)

Comments

[Tail Dogging The Wag]

This is why it's always good to keep some liquidity... so you can grab these opportunities! Let the weak hands leave the table. I just love these dips! hi-yo silver!

[topcallingtroll]

I am hoping you get a nice dip.

I might buy back in if it gets to the mid thirties.

[Tail Dogging The Wag]

You wish! lol

[topcallingtroll]

Putting on ZSL at 13.69 may turn out to be a good trade.

[pacu44]

why is silver down 4.40 an oz? buying as this is an oppurtunity but wonder why am I so lucky right now?

[pacu44]

why is silver down 4.40 an oz? buying as this is an oppurtunity but wonder why am I so lucky right now?

[pacu44]

why is silver down 4.40 an oz? buying as this is an oppurtunity but wonder why am I so lucky right now?

[Kassandra]

pacu44..hit the save button ONCE.  To wager a guess, silver is being forced down by JP Morgue and associated minions. BTFD!

[booboo]

Royal wedding is over and I suspect fair Kate is trading in all of that wedding silver. "I say love, where is me silver spoon" 

 "why William, I traded it in for a pair of edible bloats"

[Silver Bug]

Silver just took the smack down of its lifetime, Check it out!

http://silverliberationarmy.blogspot.com/

Time to BTFD!

[topcallingtroll]

I think you can wait until mid thirties.

All that backwardation was producers falling all over themselves to hedge in the mid forties.

[critical_mass_soon]

12% down in silver time to buy the dip? no brainer really! amazing what a few margin hikes can do!

I'm loving this volitility, its so much fun! - i could do with another 10% down though, if it does go there, im buying kilos! (If i can get my hands on it).

[Tail Dogging The Wag]

Good luck getting physical. They're dumping the paper silver.

[patb]

if the Japanse GDP drops 20%,  due to the Tsunami,  the

near term Debt/GDP ratio will become something amazing.

[Temporalist]

$1000 Trillion Dollars!

http://www.youtube.com/watch?v=jTmXHvGZiSY

(remember when this was a lot of money)