This guy is a borderline lunatic. Go onto Youtube and type in his name. He was also unfortunately yelling a few years back about how real estate was sound and not going to fall nationwide. In a few years time he will be declaring a war on jealousy and hawking lava lamps on an infomercial.
Yes, somehow he makes that ‘adding mis speak’.
A 1% positive current account balance and 10% fiscal deficit gives 11% surplus for the private domestic sector, not the 9% he mentions.
Pity, it may leave Kyle puzzling on New Year’s eve…..
Claiming that Japan cannot default on their debt voluntarily is not necessarily true. There is a limit to how many Yen Japan can print without effecting the value of the currency. The value of the currency matters.
If Japan’s revenue from taxation is not sufficient to pay the interest on the debt, they either need to print sufficient Yen to make up the deficit or default. Either way, the bond holder suffers. The more they need to print, the more pressure they put on the value of the Yen.
Ask yourself if you would be a buyer of Japanese debt. If not, why not?
Paying off debt with a devalued currency is not much different than settling for $.90 on the dollars that might occur in US Corporate Bankruptcy Court. Default and devaluation are just different sides of the same coin.