QUOTE(taxpayer @ Apr 25 2012, 10:08 PM)
That is very true during the heydays of the 90s. I am really sorry sir but the Japanese government debt is 200% of their GDP and it is one of the highest in the world, meaning that the money that they owe is twice the number of their economic output a year . The same figure for Italy is around 100% and investors are already knocking on their doors.
You may not understand Japan's situation correctly. True they have the highest per GDP capita debt in the world but unlike other countries, their debt is almost entirely owned by domestic concerns.
Chiefly Japan Post, pension and Japanese banks. Not the same with Italy at all. They can always print more money to cover obligations - so far looks like they can do it because inflation is not a concern(the opposite really), they want to soften the endaka and when you have no foreign holders of govt. securities, you can do what you want.
Japan borrows money using JGB bonds. Almost the entire tranche is placed out locally. The Japanese government adopted this aggressive borrowing to stimulate the local economy after the crash of the 90s e.g. building bridges to nowhere, mostly construction.
The measure of how rich a country is a combination of the size of its economy, its per capita GDP, size of reserves, assets under Japanese bank management and the market capitalization of its stock market. Japan is still very rich, by all these measures, richest in Asia. They've got lots of money.
They lend out strategically esp. Southeast Asia because that's one of the main foundations of Japanese foreign policy. Soft power.