Re:Japan Starts to Recharge After Two Lost Economic Decades
by ddeck on Monday May 20, 2013 @05:49AM
(#5736764)
Yes, it is possible. Which is why I wrote little chance rather than no chance. Given the magnitude of the debt however, it is a very unlikely outcome.
Consider that just to achieve close to zero GDP growth over the last nearly 20 years, the government has been borrowing and spending ~10% of GDP every year. It will require an enormous amount of growth to offset even that spending, and you're still at 0%.
Consider that just to achieve close to zero GDP growth over the last nearly 20 years, the government has been borrowing and spending ~10% of GDP every year. It will require an enormous amount of growth to offset even that spending, and you're still at 0%.