Japanization

Most of the (high) government debt in Japan is held in the form of securities issued by public-sector entities. When a security matures, it is rescheduled (restructured) at low interest rates – the term is also applied to EMU. The high national debt of Greece, for example, is converted into a low-interest liability to the European Stability Mechanism with the longest possible term. In this way, the Greek state is freed from the necessity of having to service issued government bonds at maturity. – In this way, the overwhelming load burden of the EMU debtor countries is transformed into a featherweight, almost interest-free, perpetual liability at the expense of the Community. At the same time, this reduces the pressure on countries with excessive deficits to bring their revenues and expenditures into balance and, above all, to bring their domestic economies into line with international standards. – See bail-out, blame game, blackmail potential, euro bonds, European debt agency, European Monetary Fund, contingent debt, ECB balance sheet, financial stability, gold sacrifice, Greek crisis, peer pressure, fiscal consolidation, Irish crisis, last resort, moral hazard, neuro, policy clamp, policy default, bailout, risk taker, final, solidarity, financial, public debt pressure, stability and growth pact, fundamental error, governance framework, transfer union, debt-productivity linkage, wealth levy, treaty fidelity, growth-debt fact, historical, transfer, veiled, constitutional article one, growth forces mobilization, competitiveness.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/