MCViewPoint

Opinion from a Libertarian ViewPoint

Japan is so broke that its prisons are full of 80+ year old ‘felons’ | The Daily Bell

Posted by Martin C. Fox on March 26, 2018

Printing lots of money for a long time. Sound familiar?

And Japan didn’t spend a bundle on military boondoggles because Uncle foots their bill.

How many times does it have to be proven only the market can predict what the market wants?

http://www.thedailybell.com/news-analysis/japan-is-so-broke-that-its-prisons-are-full-of-80-year-old-felons/

By Simon Black

…One in five female prisoners in Japan is senior, almost all of whom have been convicted of petty crimes like shoplifting.

This is no accident. Elderly women in Japan are economically vulnerable. Half live below the poverty line. Many live by themselves and have no one to turn to for help.

So there’s a growing trend in Japan of elderly women deliberately committing petty crimes– hoping to get caught so that they’ll be sent to prison.

In prison, of course, they’re fed, clothed, housed, and even have their health care covered by the state.

It’s a pitiful, last resort form of welfare that’s likely going to become worse as Japan’s already elderly population continues to age.

It’s also a sad example of what happens when a nation’s economy goes bust after a dangerous, explosive, unsustainable boom…

The Japanese stock market was soaring. Japanese property prices were, by far, the most expensive on the planet.

Then it all went bust in the late 80s.

It turned out that Japan’s massive economic boom had been fueled by years of unsustainable monetary policy– the central bank simply conjuring trillions of currency units out of thin air.

The country had been flooded with money. Bank balance sheets were stuffed full of trillions of yen and they began liberally loaning out– practically giving away– money to businesses and investors.

They were able to get away with it because Japan’s economy was healthier than the rest of the world’s.

The US was going through a series of deep recessions. Japan, meanwhile, was a production and export powerhouse.

So even though the Japanese central bank was printing unlimited quantities of paper money, the rest of the world readily accepted it.

Japanese financial markets soared, and large Japanese companies went on an international shopping spree, gobbling up prized assets– especially in the United States.

But by the late 1980s, the giant Japanese monetary bubble burst. Everything crashed. Stocks. Property. The economy itself.

Three decades later it has yet to recover…

Be seeing you

what-me worry

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