Noah Smith - Japan's LOOMING DEBT NIGHTMARE OMG LOL BRB YKINMK IANALNDIPOOT.
Noah's freaking out about Japan's huge debt.
I think he's especially freaking out about the possibility that the global bankers get screwed in the long run, were Japan to follow the most intelligent policy of default, or at least partial-default-through-inflation:
Either a default or a hyperinflation would cause every Japanese financial institution, and most Japanese businesses, to fail. OMG BRB
Yeah, don't believe the hype from this guy. The only people to ever care about national default are the banksters.
And the banksters don't care because right now JGB 10Y has a 0.29% yield.
That's... uh... less than the world rate of inflation, in a currency that is in a long trend of depreciation. JBGs pay out in Yen, remember.
So even the banksters aren't concerned.
And do countries with >200% debt always default? Well, the United Kingdom never defaulted, and its debt was >200% of GDP after the Napoleonic Wars.
So the best course is to assume that Noah's written an article not even for the real banksters, but rather for the imaginary banksters who live in his head who vote Republican and chat people up on Fox News.
In other words, Noah Smith is a fucking useless parrot of insane fantasies and we can all ignore him from now on.