Bad figures

Bubble prophet fears new disaster | The Japan Times Online

Quite a lengthy article here on the shaky looking future for Japanese public debt. The pessimists suggest government bankruptcy and hyperinflation in the not so distant future:

Japan's present debt-to-GDP ratio is only comparable with what it was at the end of World War II. At that time, the only way the government could reduce the debt was through hyperinflation, which wiped out much of the people's wealth with skyrocketing prices.

"I can't tell exactly what will happen (this time), but what actually happened after the war was that the price level surged 60 times in just over four years," Noguchi said.

"If the same thing happens again, a ¥10 million bank account will have the same net value of just ¥100,000 today. It's actually possible," he warned.

The answer, some suggest, is a serious increase in sales tax now, but it's a country not exactly known for having brave politicians.

Also in The Japan Times, land values dropped pretty substantially last year throughout the country.