Comments on: The new Japan, domestic consumption, and the neo-liberal thought machine http://www.creditwritedowns.com/2009/11/the-new-japan-domestic-consumption-and-the-neo-liberal-thought-machine.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Anonymous http://www.creditwritedowns.com/2009/11/the-new-japan-domestic-consumption-and-the-neo-liberal-thought-machine.html#comment-57523 Anonymous Thu, 05 Nov 2009 22:30:00 +0000 http://www.creditwritedowns.com/2009/11/the-new-japan-domestic-consumption-and-the-neo-liberal-thought-machine.html#comment-57523 "Japanese households do not fund the deficit." Then who does? And where are the masses of Yen that the Japanese are supposed to have saved all these years? “Japanese households do not fund the deficit.”

Then who does? And where are the masses of Yen that the Japanese are supposed to have saved all these years?

]]> By: Anonymous http://www.creditwritedowns.com/2009/11/the-new-japan-domestic-consumption-and-the-neo-liberal-thought-machine.html#comment-57516 Anonymous Thu, 05 Nov 2009 08:12:00 +0000 http://www.creditwritedowns.com/2009/11/the-new-japan-domestic-consumption-and-the-neo-liberal-thought-machine.html#comment-57516 Hi Marshall I think I may be getting a better understanding. I re-read your article on NC that says the same thing about sovereign debt. You replied to many comments mentioning taxes. Would I be correct in saying that if Tax Income is insufficient (relative to Expenditure) that Hyperinflation may result? It seems that one argument is saying that Hyperinflation occurs when a Tax Revolt - or equivalent - takes place; I believe it can take place if Tax Revenue is 'insufficient'. Whether insufficiency occurs by population migration, active evasion, or simply by people remaining unproductive and sitting at home is not relevant. A sovereign can ALWAYS make good on its debt in its currency; however, Hyperinflation may be the result. The choice is between DEFAULT and HYPERINFLATION. DEFAULT is voluntary but HYPERINFLATION is not. There is only so much 'blood' that can be squeezed out. Thanks Hi Marshall

I think I may be getting a better understanding. I re-read your article on NC that says the same thing about sovereign debt. You replied to many comments mentioning taxes.

Would I be correct in saying that if Tax Income is insufficient (relative to Expenditure) that Hyperinflation may result?

It seems that one argument is saying that Hyperinflation occurs when a Tax Revolt – or equivalent – takes place; I believe it can take place if Tax Revenue is ‘insufficient’. Whether insufficiency occurs by population migration, active evasion, or simply by people remaining unproductive and sitting at home is not relevant.

A sovereign can ALWAYS make good on its debt in its currency; however, Hyperinflation may be the result. The choice is between DEFAULT and HYPERINFLATION. DEFAULT is voluntary but HYPERINFLATION is not.

There is only so much ‘blood’ that can be squeezed out.

Thanks

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