Thursday, March 25, 2010

Japan Approves Record $1 Trillion Budget

Japan's parliament has approved a record $1 trillion budget for the fiscal year that starts in April, with an all-time high of 44.3 trillion yen ($490 billion) in new bond issuance.

Japan's budgets have generally been financed domestically. as opposed to international buyers of the debt. At some point you have to wonder just how much fattened debt you can stuff down the bellies of Japan's sushi eaters, who continue to be great savers.

Public debt is already nearly twice the size of Japan's GDP, the highest ratio in the industrialized world.

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