Mountains of Debt – The Keynesian Legacy
February 1, 2011 · Posted in Government
To follow up on Keynesianism’s Depredations and Futility in Action.
Not too long ago it was reported that Japan’s debt rating is cut as deficits pile up:
In another reminder of the worsening debt loads of developed nations, Standard & Poor’s on Thursday cut Japan’s credit rating one notch, citing the country’s continuing large budget deficits and the burden of an aging population.
Japan’s rating was trimmed to AA-minus from the AA rating it had held since 2007. The country lost its top AAA rating from S&P in 2001 after more than a decade of economic malaise.
Japan’s total public debt is about 200% of gross domestic product, the highest of any developed country and more than double the U.S. ratio.
S&P said the downgrade reflected its concern that Japan’s debt ratio would continue to rise as annual budget deficits piled up. It forecasts a deficit of 9.1% of GDP in the current fiscal year, and expects that to decline “only modestly” to 8% in fiscal 2013.
This is what’s in store for the western world thanks to the “cures” proscribed by Keynesian clowns around the globe. Their inevitable legacy will be mountains of debt, deficits, broken promises, and ongoing instabilities and depressions.