Japan's economy on the verge of collapse - great news for the UK?

GordonBennet · 11-06-2010, 10:15

http://news.bbc.co.uk/1/hi/business/10290933.stm

According to the BBC "Japan is at "risk of collapse" under its huge debt mountain, the country's new prime minister has said.

Naoto Kan, in his first major speech since taking over, said Japan needed a financial restructuring to avert a Greece-style crisis.

"Our country's outstanding public debt is huge... our public finances have become the worst of any developed country," he said.

After years of borrowing, Japan's debt is twice its gross domestic product."

Now I'm sure the forum's economic experts will put me right if I'm wrong but surely our competitors being on the verge of collapse is good news for the UK as it means UK businesses will be more competitive in the global market and may be able to take business away from Japanse companies?

eckerslike · 11-06-2010, 10:21

Quote:

Originally Posted by GordonBennet

http://news.bbc.co.uk/1/hi/business/10290933.stm

According to the BBC "Japan is at "risk of collapse" under its huge debt mountain, the country's new prime minister has said.

Naoto Kan, in his first major speech since taking over, said Japan needed a financial restructuring to avert a Greece-style crisis.

"Our country's outstanding public debt is huge... our public finances have become the worst of any developed country," he said.

After years of borrowing, Japan's debt is twice its gross domestic product."

Now I'm sure the forum's economic experts will put me right if I'm wrong but surely our competitors being on the verge of collapse is good news for the UK as it means UK businesses will be more competitive in the global market and may be able to take business away from Japanse companies?

It is actually very bad news for the rest of the world because it means a major economy is about to reduce its spending in a massive way and attempt to cut costs. So as their domestic market dries up Japanese manufacturers will look to sell more overseas whilst the country restricts imports. Add to that turmoil in the financial markets and currency markets and it is just another factor that will hamper world recovery.

Treatment · 11-06-2010, 10:30

Quote:

Originally Posted by eckerslike

It is actually very bad news for the rest of the world because it means a major economy is about to reduce its spending in a massive way and attempt to cut costs. So as their domestic market dries up Japanese manufacturers will look to sell more overseas whilst the country restricts imports.

I can see my Nissan GTR, which is on provisional order, coming down in price !

Go for it Tojo !

Rupert_Baehr · 11-06-2010, 10:31

It's bad news. but it's also worth considering who the Japanese government owe the money to.

Most of the UK debt is owed to foreign investors. Most of the Japanese debt is owed to the Japanese people. Their large deficit doesn't help them, but it's potentially somewhat less damaging than that of the UK.

Rupert_Baehr · 11-06-2010, 10:35

Quote:

Originally Posted by Treatment

I can see my Nissan GTR, which is on provisional order, coming down in price !

Go for it Tojo !

Where is your Nissan GTR being made? Is it being made in Japan and shipped to the UK (in which case you will be paying 10% EU import duty on the car before the UK government slap on the VAT ... at 20%? Or would it be 22.5%? Or even 25%?)

Or is it being made in the UK or in one of the European factories?

I suspect you're going to see a significant increase in VAT in the near future.

mj.scuba · 11-06-2010, 10:38

the collapse of any major economy in the world is noever going to be good for the UK, there is a world economy as well as the local and continental one, something like this is like a stone thrown into a millpond.

Treatment · 11-06-2010, 10:45

Quote:

Originally Posted by Rupert_Baehr

Where is your Nissan GTR being made? Is it being made in Japan and shipped to the UK (in which case you will be paying 10% EU import duty on the car before the UK government slap on the VAT ... at 20%? Or would it be 22.5%? Or even 25%?)

Or is it being made in the UK or in one of the European factories?

I suspect you're going to see a significant increase in VAT in the near future.

Made in Japan, I wouldn't buy it if it was being made in Sunderland.

Bedders · 11-06-2010, 16:26

Quote:

Originally Posted by GordonBennet

http://news.bbc.co.uk/1/hi/business/10290933.stm

According to the BBC "Japan is at "risk of collapse" under its huge debt mountain, the country's new prime minister has said.

Naoto Kan, in his first major speech since taking over, said Japan needed a financial restructuring to avert a Greece-style crisis.

"Our country's outstanding public debt is huge... our public finances have become the worst of any developed country," he said.

After years of borrowing, Japan's debt is twice its gross domestic product."

Now I'm sure the forum's economic experts will put me right if I'm wrong but surely our competitors being on the verge of collapse is good news for the UK as it means UK businesses will be more competitive in the global market and may be able to take business away from Japanse companies?

As highlighted above:- Don't think you can take a positive from Japan hitting hard times. Last time that really happened (when America limited their raw materials supply).....well Pearl Harbour!

To be honest the Uk ain't a world competitor in Electronics so don't think Japan's misery will be our gain?

melthebell · 11-06-2010, 16:38

the fall of capitalism? all these countries on the brink

Pidgeon · 11-06-2010, 17:04

I thought everything made in Japan, was made in Taiwan.

Tony · 11-06-2010, 18:04

Quote:

Originally Posted by GordonBennet

http://news.bbc.co.uk/1/hi/business/10290933.stm

According to the BBC "Japan is at "risk of collapse" under its huge debt mountain, the country's new prime minister has said.

Naoto Kan, in his first major speech since taking over, said Japan needed a financial restructuring to avert a Greece-style crisis.

"Our country's outstanding public debt is huge... our public finances have become the worst of any developed country," he said.

After years of borrowing, Japan's debt is twice its gross domestic product."

Now I'm sure the forum's economic experts will put me right if I'm wrong but surely our competitors being on the verge of collapse is good news for the UK as it means UK businesses will be more competitive in the global market and may be able to take business away from Japanse companies?

Default or deferment is never pretty.

Mister M · 11-06-2010, 18:12

Quote:

Originally Posted by GordonBennet

http://news.bbc.co.uk/1/hi/business/10290933.stm

According to the BBC "Japan is at "risk of collapse" under its huge debt mountain, the country's new prime minister has said.

Naoto Kan, in his first major speech since taking over, said Japan needed a financial restructuring to avert a Greece-style crisis.

"Our country's outstanding public debt is huge... our public finances have become the worst of any developed country," he said.

After years of borrowing, Japan's debt is twice its gross domestic product."

Now I'm sure the forum's economic experts will put me right if I'm wrong but surely our competitors being on the verge of collapse is good news for the UK as it means UK businesses will be more competitive in the global market and may be able to take business away from Japanse companies?

No mention of Gordon Brown role in this...?

Tipex · 11-06-2010, 19:51

Japan just about makes everything. The famous roland synths for a start.