Japanese government can afford enormous debt because it owns bank that is its principal creditor

[stockholmer]

http://webofdebt.wordpress.com/2011/03/31/why-the-japanese-government-can-afford-to-rebuild-it-owns-the-largest-depository-bank-in-the-world/#more-1154

The Japanese government can afford its enormous debt because it owns the bank that is its principal creditor. But competitors are attempting to force the bank’s privatization. If they succeed, they could propel the country into debt servitude along with other credit-strapped nations.

When an IMF spokeswoman said at a news conference on March 17 that Japan has the financial means to recover from its devastating tsunami, skeptical bloggers wondered what she meant. Was it a polite way of saying, “You’re on your own?”

Spokeswoman Caroline Atkinson said, “The most important policy priority is to address the humanitarian needs, the infrastructure needs and reconstruction and addressing the nuclear situation. We believe that the Japanese economy is a strong and wealthy society and the government has the full financial resources to address those needs.” Asked whether Japan had asked for IMF assistance, she said, “Japan has not requested any financial assistance from the IMF.”

Skeptics asked how a country with a national debt that was over 200% of GDP could be “strong and wealthy.” In a CIA Factbook list of debt to GDP ratios of 132 countries in 2010, Japan was at the top of the list at 226%, passing up even Zimbabwe, ringing in at 149%. Greece and Iceland were fifth and sixth, at 144% and 124%. Yet Japan’s credit rating was still AA, while Greece and Iceland were in the BBB category. How has Japan managed to retain not only its credit rating but its status as the second or third largest economy in the world, while carrying that whopping debt load?............................"

http://atimes.com/atimes/Japan/MD01Dh01.html (longer version)
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Hazel Henderson just pointed out something interestin­g: if the Japanese included social goods in GDP, then the debt wouldn't exceed GDP. We include financial services, the largest component of GDP, which don't actually "produce" anything. Their government has invested in its people, with education, retirement­, medical -- real goods. Those should be counted.”

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Ellen Brown interviewed by Max Keiser

http://www.youtube.com/watch?v=bm0BeklPico&feature=player_embedded
US States creating their own banks-On the Edge with Max Keiser-04-08-2011-(part1)

http://www.youtube.com/watch?v=PNbzM9BeqYc&feature=player_embedded#at=158
US States creating their own banks-On the Edge with Max Keiser-04-08-2011-(part2)

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end the Fed before it ends you

[dmallind]

1. But the US government is also its own biggest creditor.

Why is that not OK if Japan is?

[stockholmer]

2. no it is not, the Fed is a privately held institution,+foreign nations own huge share of the debt

The Fed is owned (via non-sellable subscription stock in each of its regional banks) by a consortium of private banks (the Bank of England is the single biggest shareholder)

cool short, animated movie on the banking system ----> http://www.youtube.com/watch?v=ZPWH5TlbloU&feature=player_embedded


another great expose - Money Masters- comprehensive history of private central banks,how they control world's economy

http://video.google.com/videoplay?docid=-515319560256183936


http://www.csper.org/renaissance-20.html another good source of info



It is illegal for the Fed to directly monetize the debt, so they simply sell T-bills to a group of "preferred primary dealers" such as JP Morgan, Goldman Sachs, etc (who profit billions from this) who then turn round and sell them back to Fed. Its monstrous fraud, and just one part of it.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson

[stockholmer]

3. even simpler way to put it, if the US owed itself the debt, why do they have treasury auctions

http://www.ritholtz.com/blog/2011/03/who-does-the-us-owe-money-to/


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plus, over the next 12 month the Fed needs to sell over $1.7 trillion in new financing (at least) just to cover the budget deficit, AND they have over $2.5 trillion in maturing short term debt to roll over

that is over $4 TRILLION in new treasury sales needed to just keep the Ponzi scheme afloat

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Dollar crisis/huge inflation is probably on the way, especially if the Fed launches QE3 and doesn't raise interest rates.

But, if they do not do QE3, the economy tanks further, plus raising interest rates just several hundred basis points will add hundreds upon hundreds of $BILLIONS to the deficit.

Catch 22, man the escape pods.