Blowing the budget

Good morning everyone,

Well, it's looking like this nice weather is going to continue for a while-highs for the next few days will be between 10C and 13C and there's no rain (or snow) in the forecast. That's not too bad for the end of December, is it?

While I try to be as positive as I can about my criticism of the government (I am a guest of the Japanese government after all)...about their spending, it's hard to put a positive spin on their thinking.

Just the other day, the government submitted to the Diet a budget of Y96.7 trillion, if you're one of those people who has a hard time with large numbers, here's what it looks like with all the zeros. Y96,700,000,000,000. That is a lot of zeros. And having a lot of zeros at the end of a number is great if you are talking about your income or what your company is worth.

However, if you are the government and you're spending money, it's not so good...well, I guess it's not bad if your country has a lot of money coming in, but if the money coming in is less than the money going out, it's not going to end well, is it?

This, of course, is the big problem with PM Abe and his government-they're spending money like a teenager with their parent's credit card...ha ha! Even at the most optimistic, the Japanese government will earn Y56 trillion in income for next year, but they've created a budget almost double that! And their expectations for the Y56 trillion in revenue are based on the economy growing by 2%. Do you know the last time the Japanese economy grew by 2%? No? Me neither! 

Here's an image of the GDP of Japan recently, showing the average to be under 1%.
japan gdp
What does this mean?

Well, it means that the gap between income and expenditures will be huge. Imagine if I ran my company like the government? I'd be out of business in about a month...maybe two at the most.

Yeah...it's not good news, is it? The Japanese government is in debt by this much...

¥ 1,229,232,927,695,938

That seems like a lot, doesn't it? If you split it down by person, well, we'd all owe Y9,660,743 each. Well, let me get my checkbook out...ha ha!

Ok, so all joking aside. I can't believe that PM Abe thinks he can spend his way out of trouble. Anyone with half a brain could work out that Japan needs to spend less, not more based on these numbers...in Japan we love to look down on Italy, Greece and Spain because of their debt problems. The only reason these came to light was because the EU made them face up to their debts. Who will force Japan to do so?
japan debt
Japan's debts are way, way, way (is that enough 'ways'?) worse than those countries, yet the government continues to spend money like I did with my first paycheck. I love to joke about it but, to be brutally honest, it scares the hell out of me. I'm constantly worrying about when the economy is going to collapse and my yen will be worth less than the paper it's printed on.

But that's enough doom and gloom for one day...I promise that tomorrow's blog will be happier and cheerier!

Have a great day!

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