RESPONSIBL​Y. The Japanese 'plan' as a roadmap for the EU and the US?............from Rico

Preface: A dear friend got me thinking about Japan this morning, so in essence he is somewhat responsible for stimulating this epistle.
- Now I'm hungry for some fresh sushi...

Simply put, this is one brilliant 'solution' to an unsolveable problem: excessive sovereign debt.

Japan has apparently figured it all out.
- Forget their mastery of cars and consumer electronics for a moment, and consider the finances/economics of Japan. They are blazing a trail for their Western counterparts, who may not be bright enough to find any other solution than following Japan's example on this one. After all, we're slipstreaming right behind them on this debt problem right now.

After 20+ years of CTRL+P Yen-printing/borrowing, Japan reaches 240% of debt-to-GDP this year.
- It borrows over 50% of each Yen it spends, and spending is increasing.
- There is no 'cut the budget' fantasy in Japan, since even if they cut their budget in half they'd still be in deficit.
- Ninety-five percent of Japan's debt is held in Japan (BoJ, banks, companies, pension funds, and individuals), in bonds.

The answer is hiding in plain sight on the official GoJ Ministry of Finance (MoF) website. [screen capture attached]
- Actually, a rather serious question and the formal MoF response lay out 'the Plan' for us all to see.

Question 5 (under FAQ's bonds) asks: "In case Japan becomes insolvent, what will happen to government bonds?"
- The MoF answer is: "Rest assured that the Japanes government will redeem the bonds responsibly. (my emphasis)."

Responsibly. I
- read this as 'selective default' since what cannot be paid back, will not be paid back, and these bonds while being held at their value won't be redeemed at maturity, but whenever a 'responsible' government deems fit to do so. Owners will die before they see their money.
- In simple English read: "You're ALL completely screwed."

Don't think a government would do this to its own people? Full faith and credit, and all that? Hahahahahahaha!!!
- You bet they would, and in a New York second!

Anyone holding sovereign bonds is going to get 'responsibly' skinned alive.