Astroboy
先輩
- 5 Dec 2007
- 1,264
- 25
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- Thread starter
- #201
Both the US and Japan are covered this month.
http://www.investorsdailyedge.net/nl-strategic-investment/si_july10.pdf
This artcile is too pessimistic.
Leverage is like youth. It can be very enjoyable while
it lasts, but it can't go on forever. Logic is against it.
So is compound interest. As debt escalates, an evergreater
percentage of future income must be devoted
to debt service.
Yes, on private debts, but No about sovereign bonds in case of Japan and USA as both are sovereign nations and government bonds are all in their own currencies. Roll-over and modest inflation will solve the debts in a longer term.
But I don't know how Japan can get out of deflationary economy ... maybe never.