Japanese Debt Reaches 795.8 Trillion Yen
Japan's government debt, already the highest in the industrialized world, rose 1.7 percent to a record high of 795.8 trillion yen ($7.1 trillion) at the end of June, according to a report released by the Finance Ministry.
The latest figure marked an increase of 14.3 trillion yen from the end of March , the ministry said Thursday. The amount is equivalent to about 6.24 million yen ($55,900) for every Japanese.
Japan has relied on government bond issues to make up for falling tax revenues, turning into one of the world's most indebted countries.
Japan's public debt burden is almost 160 percent of its GDP and already the highest in the industrialized world.
Prime Minister Junichiro Koizumi, voted back to office following a landslide win in the Sept. 11 lower house elections, has pledged to improve the country's finances by reining in public spending and creating a smaller government.
A package of bills that would privatize Japan's massive postal service, set to be approved during a special parliamentary session that began Wednesday, has been the cornerstone of Koizumi's reform agenda.
Advisers to the government have also been mulling ways to raise taxes when the nation's economic recovery takes firmer root.
160 percent of their GDP? Yowza.
It takes money to make money.
Like issuing bonds to pay for port upgrades that will increase the tax base to pay back the bond. Of course sometimes investments don't pay off.
Jimro
Like issuing bonds to pay for port upgrades that will increase the tax base to pay back the bond. Of course sometimes investments don't pay off.
Don't forget 100-year mortgages. While that doesn't sound like it relates, it does, since the mortgages hurt banks, and Japan has been using federal money to try and bail out the banks.
