The Bank That OWNS Half of a Nation's Debt (Bank of Japan)

Описание: Japan's 1990 bubble collapse should have triggered one of the worst financial crises in modern history. Instead, 35 years later, with government debt exceeding 260% of GDP and a central bank owning half of all outstanding bonds, the expected meltdown never came. This is the story of a trade-off most economies cannot make.

This video explores how Japan avoided systemic collapse after its asset bubble burst—not through superior policy, but through a deliberate choice to spread costs across generations. We examine the mechanism of financial repression: evergreening bad loans, zero interest rates held for decades, and the Bank of Japan becoming the permanent buyer of government debt. The analysis compares Japan's path to Sweden's rapid 1991 restructuring and traces how zombie firms, suppressed competition, and yield curve control shaped an economy for 35 years. Now, with inflation returning and the yen weakening sharply, Japan's model faces its greatest test.

What Will You Learn
• How evergreening policies kept zombie firms alive while suppressing creative destruction
• Why Japan's 260% debt-to-GDP ratio never triggered a sovereign debt crisis
• The Bank of Japan's unprecedented ownership of 50% of government bonds and 10% of the stock market
• How yield curve control since 2016 made the BOJ the permanent market maker
• Why Sweden's 1991 banking crisis resolved quickly while Japan chose decades of stagnation
• The trade-off between employment stability and economic dynamism
• Why yen weakness and returning inflation now threaten Japan's 35-year equilibrium

This video is for educational and informational purposes only. Nothing presented here constitutes financial, investment, or legal advice.

About The Channel
The Untold Economy reveals the hidden systems, incentives, and historical patterns behind how money and power shape nations. We explore financial history, macroeconomics, and geopolitics through calm, analytical storytelling—no hype, no sensationalism. If you want to understand how economies actually work, subscribe and join us.

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