By Ellen Brown.
Japan’s massive government debt conceals massive benefits for the Japanese people, with lessons for the US debt “crisis.”
In an April 2012 article in Forbes titled “If Japan Is Broke, How Is It Bailing Out Europe?” Eamonn Fingleton pointed out that the Japanese government was by far the largest single non-euro zone contributor to the latest Euro rescue effort. This, he said, is “the same government that has been going round pretending to be bankrupt (or at least offering no serious rebuttal when benighted American and British commentators portray Japanese public finances as a trainwreck).” Noting that it was also Japan that rescued the International Monetary Fund (IMF) system virtually single-handedly at the height of the global panic in 2009, Fingleton asked:
How can a nation whose government is supposedly the most overborrowed in the advanced world afford such generosity?
The betting is that Japan’s true public finances are far stronger than the Western press has been led to believe. What is undeniable is that the Japanese Ministry of Finance is one of the most opaque in the world …
Fingleton acknowledged that the Japanese government’s liabilities are large, but said we also need to look at the asset side of the balance sheet:…
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