Thursday, January 26, 2012

Sovereign debt can now be measured in the quadrillions

The small but industrious nation of Japan has just finished adding a few more zeros to their computer models as sovereign debt for the Asian powerhouse has just crossed a new Rubicon.

$1 quadrillion yen.

Yesterday the Japanese Finance Ministry made a whopper of an announcement: in the year ending March 2013, total Japanese debt will surpass one quadrillion yen, or ¥1,086,000,000,000,000. This is roughly in line with the Zero Hedge expectations that by this March total Japanese debt would surpass one quadrillion yen. In USD terms, at today's exchange rate, this is precisely $14 trillion. - Zerohedge

In simple terms, this is the inevitable state of a nation who prints, and relies upon a fiat currency.  Once started down the path of money printing to create growth and productivity, there is no turning back until its entire devaluation leads to a collapse.

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